The false promise of green jobs

Navigating #GreenJobs & #IndustrialPolicy Challenges Key Takeaways:

Marrying climate and industrial aims often dilutes efficacy.
Efficient climate policy may not equate to job creation.
Government challenges in picking winners hinder policy success.

Further Insights

Industrial vs. Climate Goals: The integration of industrial policy with climate change objectives risks compromising both economic growth and emission reduction goals due to conflicting strategies.
Carbon Pricing & Subsidies: Combining carbon pricing with clean-tech subsidies is advised to drive technological advancement towards cleaner energies, with the transition supported initially by subsidies and eventually by carbon pricing.
Research Externalities: The shared nature of knowledge from green research creates positive externalities, yet national and corporate underinvestment persists due to the higher international and social returns.
Policy Ineptitude: Government failures in identifying successful technologies and mitigating rent-seeking through lobbying challenge the effective implementation of industrial policy.
Economic Reality: The goals of job creation, economic growth, regional revitalization, and emission reductions often conflict, complicating the realization of a coherent industrial policy.

Closing Thoughts: As we navigate the murky waters of aligning industrial policy with climate goals, how can governments ensure that the pursuit of green jobs does not overshadow essential climate action or result in wasteful expenditures? Reflecting on successful navigation through these intertwined objectives may pave the way for a more sustainable and prosperous economic strategy.