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Working Paper

Green exports and the global product space: Prospects for EU industrial policy

We test if and where industrial policy to promote ‘green’ industry development can improve competitiveness in export markets. Proponents of ‘green growth’ have argued that domestic promotion of ‘green’ energy will generate improved comparative advantage in export markets for high-technology goods such as wind turbines or solar cells. If this holds depends on if domestic […]

By: and Date: May 21, 2011 Energy & Climate Tags & Topics

We test if and where industrial policy to promote ‘green’ industry development can improve competitiveness in export markets. Proponents of ‘green growth’ have argued that domestic promotion of ‘green’ energy will generate improved comparative advantage in export markets for high-technology goods such as wind turbines or solar cells. If this holds depends on if domestic market expansion can, on its own, support firm competitiveness abroad.

We find evidence that industrial policy may work for wind turbines, but we find no evidence that it works for solar cells. Furthermore, domestic renewable energy promotion is more likely to translate into improved international competitiveness if a country already possesses skills, technologies, and industrial sectors closely related to the sector in question. By locating the wind turbine and solar cell sectors in the global product space of traded goods, we are able to show that, net of historical competitiveness and domestic market size, green industrial policy functions best when capitalising on pre-existing industrial capacities, rather than trying to create them.

Finally, our finding that policy appears to work for wind turbines but not solar cells may reflect the greater tradeability of solar cells, which may mean that expansion of domestic demand leads to more imports rather than expanded domestic production. While this paper suggests conditions under which green industrial policy might prove effective in economic development, it makes no claims about whether this represents an efficient approach to either growth or emissions reduction. This evidence recommends caution in using economic growth and competitiveness arguments as the primary justification for investments in renewable energy.

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Blog Post

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Simone Tagliapietra

Brexit goes nuclear: The consequences of leaving Euratom

The UK Government has confirmed that it will withdraw from Euratom. But what does Euratom actually do? And what will happen when the UK leaves? The authors find major risks, potential costs and open questions.

By: Enrico Nano and Simone Tagliapietra Topic: Energy & Climate Date: February 21, 2017
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Past Event

Past Event

Different perspectives on Nord Stream II

At this event, we intend to bring together key-experts that studied the regulatory and economic aspects of Nord Stream II

Speakers: Severin Fischer, Siobhan Hall, Alan Riley, Szymon Polak, Sebastian Sass, Simon Schulte, Borbála Takácsné Tóth and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: February 21, 2017
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Upcoming Event

Mar
7
12:30

Trump’s energy policy: America first, climate last?

This event seeks to discuss the potential way forward for the US energy and climate policy, and its implications for both global energy markets and global climate change mitigation efforts.

Speakers: Kristine Berzina, Tim Boersma, Connie Hedegaard, Simone Tagliapietra and Zhang Xumin Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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Blog Post

Silvia Merler

Climate change and financial markets

What’s at stake: Ever since the 2016 Paris Agreement to reduce emissions was signed, researchers have been looking at the impact that moves towards a low-carbon economy might have on financial markets and financial stability. We review these contributions here. 

By: Silvia Merler Topic: Energy & Climate, Finance & Financial Regulation Date: January 30, 2017
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External Publication

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Energy Relations in the Euro-Mediterranean: A Political Economy Perspective

This book provides a detailed overview of the current status and future prospects of Euro-Mediterranean energy relations through analysis of those relations and pertinent case studies.

By: Simone Tagliapietra Topic: Energy & Climate Date: December 13, 2016
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External Publication

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Climate policy in China, the European Union and the United States: Main drivers and prospects for the future

China, the European Union (EU) and the United States (US) are responsible for the majority of global emissions of greenhouse gases, and produce about half of global GDP. Hence, their climate policies not only determine the success of global efforts to curb future emissions of greenhouse gases, but also affect policy developments in other countries. The aim of this report is to assist policy-makers, climate change negotiators and analysts to understand the domestic constraints and opportunities facing each jurisdiction, and to identify areas of common interest or concern between the three jurisdictions.

By: Alina Averchenkova, Samuela Bassi, Keith J. Benes, Fergus Green, Augustin Lagarde, Isabella Neuweg and Georg Zachmann Topic: Energy & Climate Date: December 6, 2016
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Blog Post

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Simone Tagliapietra

OPEC's revival or swan song? First evidence from financial markets

On Wednesday, 30 November 2016, OPEC reached a milestone agreement to cut oil production by 1.2 million barrels a day in a long-awaited attempt to end the savage two-year downturn in prices that has shredded the budgets of its members. The deal will come into effect in January 2017 and it will mark a U-turn from the pump-at-will policy adopted by the group in November 2014.

By: Enrico Nano and Simone Tagliapietra Topic: Energy & Climate Date: December 2, 2016
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Policy Contribution

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Going local: empowering cities to lead EU decarbonisation

Decarbonisation and digitalisation are reshaping the European energy system, which will become more decentralised and interconnected with other sectors. Cities have the opportunity to be the key drivers of decarbonisation, but this will require the implementation of a new bottom-up governance system. This paper outlines a four-step mechanism in order to achieve decarbonisation at city level.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: November 30, 2016
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Blog Post

Simone Tagliapietra
Georg Zachmann

How to put cities at the heart of EU clean energy plans

As the European Commission releases its new energy package, “Clean Energy for all Europeans”, our authors argue that cities are the key to success. They propose a new governance mechanism where cities develop and implement ambitious City Climate Plans – with direct monitoring and financial support from the EU.

By: Simone Tagliapietra and Georg Zachmann Topic: Energy & Climate Date: November 30, 2016
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Opinion

Simone Tagliapietra

Più energia alla cooperazione

L'attuale crisi migratoria e gli altri devastanti postumi delle cosiddette “Primavere arabe” illustrano in modo tragico, ma chiaro, la necessità di un nuovo approccio di cooperazione da parte dell’Europa nell’area del Mediterraneo. L’Europa deve urgentemente ripensare le proprie politiche nell’area, al fine di contribuire in modo concreto e sostenibile allo sviluppo economico dei Paesi sud: l’unico vero rimedio strutturale alle attuali problematiche.

By: Simone Tagliapietra Topic: Energy & Climate Date: November 24, 2016
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Blog Post

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Clean Energy for all Europeans

Speech by the European Commissioner for Climate Action and Energy, Miguel Arias Cañete, at Bruegel on 24 November 2016

By: Miguel Arias Cañete Topic: Energy & Climate Date: November 24, 2016
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Past Event

Past Event

Unpacking European Energy Policy

At this event the European Commissioner for Climate Action & Energy, Miguel Arias Cañete, presented an important energy package.

Speakers: Miguel Arias Cañete, Siobhan Hall, Guntram B. Wolff and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 24, 2016
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