Energizing Industrial Development: The Role of the State in 21st Century Greening Strategies

Abstract

Industrial development, as it diffuses globally to encompass the great emerging 21 st century powers China, India and Brazil, increasingly has to place energy issues at the core -to move off the fossil fuels that worked in the past but are creating impossible tensions now and to move towards a new green growth model that promises to reduce or eliminate those tensions as it expands. In this paper I review the issues involved in the new 'green industrial strategy' and discuss the institutional state strategies being deployed in China, India, Brazil and South Africa -the BICS countries -to drive the transition that is under way. The argument goes that in the 21 st century the developmental state has perforce to be a practitioner of green industrial strategies. The Brazilian model with its threefold involvement of state institutions in developing rolling ten-year plans for renewable energy deployment, targeted investment with local content requirements through the national development bank and promotion of cost reductions through state-mediated reverse auctions, is discussed as a viable strategy.

The Economic Implications of Tied Aid and Local Content Requirements for Climate Finance

“…With regard to LCR, previous experience in emerging countries shows that LCR can facilitate the creation of competitive green industries domestically (Kuntze and Moerenhout, 2012;Mathews, 2015), and maximize the domestic impact of foreign financing. According to our results, LCR do not seem to have a relevant impact on donors' spill-overs, since donor countries participating in global value chains are still able to capture a share of the economic benefits of climate action in developing countries via international trade of intermediate inputs.…”

“…It is explicitly prohibited under the World Trade Organization (WTO), but many member states have used them to protect local industries. For instance, in emerging economies, LCR have enabled the development of competitive renewable energy industries (Johnson, 2013;Kuntze and Moerenhout, 2012;Mathews, 2015;Pérez, 2013Pérez, , 2013. This paper also complements this other research line with the quantification of the economic consequences of LCR.…”

Estado de la investigación sobre el crecimiento verde desde la perspectiva de política pública 2011 – 2021

“…Los recientes trabajos han sido enfáticos en la necesidad de estimular la I + D no solo para la búsqueda de nuevas fuentes de energía (Philp, 2015) sino para reducir los costos de producción de las ya existentes (Bagheri et al, 2018), de tal manera que el crecimiento económico no se vea limitado o afectado por la falta de energía (Philippidis et al, 2019), caso en el cual el remedio podría resultar peor que la enfermedad. Para las economías emergentes, este es un asunto de extremo cuidado (Mathews, 2015), ya que sus necesidades socio-económicas requieren respuestas de crecimiento urgente, sin embargo, el planeta no soportaría una nueva ola de crecimiento y desarrollo a la manera de las primeras revoluciones industriales.…”

Dimensões Do Estado Contemporâneo: Uma Revisão Da Literatura Sobre Condições, Critérios E Resultados Da Atuação Estatal

“…Outras capacidades estão relacionadas à indução da industrialização e de formas alternativas de provisão de energias renováveis. Mathews (2015) apresenta os casos de Brasil, Índia, China e África do Sul, para analisar a formulação de uma "estratégia industrial verde". O caso brasileiro reúne ações como as de planejamento de longo prazo e a utilização do Banco Nacional de Desenvolvimento Econômico e Social (BNDES) para financiamento da indústria de energia renovável.…”