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Lamperti, FMazzucato, MRoventini, ASemieniuk, G (2019). The green transition: public policy, finance, and the role of the State. Vierteljahrshefte zur Wirtschaftsforschung, 88(2), 73-88. https://doi.org/10.3790/vjh.88.2.73
Lamperti, Francesco Mazzucato, Mariana Roventini, Andrea Semieniuk, GregorLamperti, Francesco Mazzucato, Mariana Roventini, Andrea Semieniuk, GregorLamperti, Francesco Mazzucato, Mariana Roventini, Andrea Semieniuk, GregorLamperti, Francesco Mazzucato, Mariana Roventini, Andrea Semieniuk, Gregor (2019). "The green transition: public policy, finance, and the role of the State" Vierteljahrshefte zur Wirtschaftsforschung, vol. 88no. 2, 2019 pp. 73-88. https://doi.org/10.3790/vjh.88.2.73
Lamperti, FMazzucato, MRoventini, ASemieniuk, G (2019). The green transition: public policy, finance, and the role of the State. Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (Issue 2), pp 73-88. https://doi.org/10.3790/vjh.88.2.73

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The green transition: public policy, finance, and the role of the State

Lamperti, Francesco | Mazzucato, Mariana | Roventini, Andrea | Semieniuk, Gregor

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 2 : pp. 73–88

9 Citations (CrossRef)

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Author Details

Francesco Lamperti, Institute of Economics and EMbeDS, Scuola Superiore Sant’Anna, Pisa (Italy) and RFF-CMCC European Institute on Economics and the Environment, Centro Euro-Mediterraneo sui Cambiamenti Climatici, email: f.lamperti@santannapisa.it

Mariana Mazzucato, Institute for Innovation and Public Purpose, University College London (UK), email: m.mazzucato@ucl.ac.uk

Andrea Roventini, Institute of Economics and EMbeDS, Scuola Superiore Sant’Anna, Pisa (Italy) and OFCE Sciences-Po (France), email: a.roventini@santannapisa.it

Gregor Semieniuk, Institute for Innovation and Public Purpose, University College London (UK), SOAS University of London (UK) and Political Economy Research Institute and Department of Economics, University of Massachusetts Amherst (US), email: gsemieniuk

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Abstract

Summary: While investments into renewable energy technologies are growing almost everywhere, the chances to meet ambitious emission and climate targets, as those envisaged in the Paris Agreement, are scant. To speed up the transition, policy makers need to design and implement a policy mix that could affect not just the quantity of green finance, but its quality as well. In this paper, we argue that a mission-oriented approach to the transition from an economy with high, to one with low greenhouse gas emissions, coupled with the state taking on the role of an entrepreneurial state, could provide an effective win-win strategy to address climate change concerns (embodied in emissions reduction and adaptation boosting) and build the basis for the next phase of growth and technological progress. In practice, this amounts to (i) abandoning the view that cost-internalization of environmental externalities would suffice to induce an effective transition (ii) developing a multi-level and cross-sectoral governance of the transition, with a clear direction in terms of the technological trajectory to favour, and (iii) designing a policy mix encompassing: fiscal instruments, targets and standards; public-private co-funding schemes; financial regulation; and disclosure practices. Social scientists should support such ambitious policy-design processes through adequate model development, where a combination of policies, and a directive role of the state, can be accommodated and examined in detail.