Green Industrial Policy in Emerging Countries
By Tilman Altenburg, Bastian Becker, Tobias Engelmaier, Tobias W. Fischer, Oliver Johnson, Anna Pegels, Hubert Schmitz, Georgeta Vidican
To Be Published January 31st 2014 by Routledge – 224 pages
For decades, governments have tried to foster industrial competitiveness and economic growth. Many instruments are known to work, and many lessons have been learned. However, humanity increasingly feels the effects of natural resources depletion. The rate of this depletion is deeply unsustainable, and it is – as of yet – inextricably linked to economic growth and development. To preserve acceptable living conditions for future generations, while at the same time creating these conditions for millions of poor in the first place, we have to achieve a de-linking of economic activity and resource depletion.
It would be a logical step to make use of the lessons learned in industrial policy and transfer them to the new and most formidable task of steering industries towards a lower environmental impact. The market fails to protect the environment, so governments need to intervene. This intervention, however, needs to be much stronger than the agreed principles of ‘traditional’ industrial policy suggest. Otherwise, it will not be possible to achieve the radical change required within the short period of
time left. Heavy government intervention, however, risks misallocation and rent-seeking.
Hence, a balance is required and in this groundbreaking new book, the authors analyse the possibilities in four major developing countries – China, India, Egypt and South Africa – with particular emphasis on the energy sector as a case study.
1. Introduction: Why Green Industrial Policy is Necessary 2. Rent Management: Why and how Green Industrial Policy needs to Manage Economic Rents 3. Green Industrial Policies: What Policies Exist, and How they Manage Rents 4. Country Cases: What Real Life Tells Us 5. Conclusion: What We Can Learn for Green Industrial Policy
Tilman Altenburg is an Economic Geographer and Head of the Department of Competitiveness and Social Development at the German Development Institute, Bonn, Germany
Bastian Becker is at the central European University, Budapest, Hungary
Tobias Engelmaier is Managing Director at Bridge to India
Doris Fischer is Chair for Chinese and Commerce at Würzburg University
Oliver Johnson is at the German Development Institute, Bonn, Germany
Anna Pegels is at the German Development Institute, Bonn, Germany
Hubert Schmitz is at the Institute of Development Studies at the University of Sussex
Georgeta Vidican is at the German Development Institute, Bonn, Germany