Knowledge news
A new working paper from the World Bank provides a framework to assess the desirability of green industrial policies, focusing on the effectiveness and political acceptability of price instruments. The paper provides a brief review of the lessons of past industrial policies; makes the case for green industrial policies, arguing that industrial policies are needed in addition to environmental policies to trigger the transformations required for more sustainable economic growth; and reviews when and how to effectively deploy green industrial policies, offering a simple framework to help ensure policy responses are matched to the particular failure they seek to resolve.