Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/228139
Authors: 
Lamperti, Francesco
Mazzucato, Mariana
Roventini, Andrea
Semieniuk, Gregor
Year of Publication: 
2019
Series/Report no.: 
LEM Working Paper Series No. 2019/41
Abstract: 
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.
Subjects: 
market-shaping
mission-oriented
green finance
renewable energies
transition
entrepreneurial state
JEL: 
H11
H70
Q48
Q54
Q55
Document Type: 
Working Paper

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