Greening Industrial Policy

Author:

Mathews John A.

Abstract

The scope of industrial policy is broadened in this chapter to encompass energy, materials, and finance. Given the unprecedented scale of the industrialization of India, China, and the late latecomers in Africa, Asia, and Latin America, the traditional options of fossil fuels, linear economy, and generic finance have been found wanting, for reasons of immediate environmental spoliation but also to do with countries running up against geopolitical limits. The greening of industrial policy presents itself as a solution, involving the shift to renewables, to a circular economy, and to the greening of finance (green bonds and green loans from development banks), encompassed under the rubric of green growth. The details of these new, green options are explored, and contrasted with traditional green industrial policy. The case is made that, far from being a special case, the greening of industrial policy promises to become the core development strategy, and the general case in industrialization, as the twenty-first century unfolds.

Publisher

Oxford University Press

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