Mapping Green Product Spaces of Nations

Abstract

As countries transition to a green economy, they will need to identify profitable entry points in which they can favorably compete with other nations in emerging green markets. Identifying and building supply capacity for commercially viable, competitive green product exports can be seen as a fundamental part of supporting green growth and sustainable development. Building on the product space model initially advanced by Hidalgo et al. in 2007, this article proposes a green product space methodology to map the export strengths of countries for a specified set of green products. The methodology does so by identifying green products for which a country is likely to be competitive in the world market based on export performance of related products. Results for Brazil are presented to illustrate the green product space methodology followed by a discussion of its limitations and potential contribution to industrial policy formulation to support emerging green sectors.