In order for the government’s environmental and climate objectives to be attained in parallel with positive economic development, a green transformation of industry is needed. This synthesis report summarises the results and lessons learned from five different studies conducted within the scope of Growth Analysis’ government assignment “Green Structural Transformation” (RB6:2012). The objective of the assignment is to produce material that can contribute to more effective and cost-efficient policy.
The aim of Swedish climate policy is to use the price mechanism to the furthest possible extent to drive change. This is achieved in part by putting a price on negative (external) effects on the environment such as carbon dioxide emissions, and in part by using specific policy instruments to promote innovation and technological development (positive external effects). Our analysis of the prerequisites for green structural transformation shows that the current framework includes the required policy instruments, but that their implementation needs to be sharpened considerably.
Growth Analysis’ studies show that without a more powerful climate policy framework, the conditions for a green structural transformation are poor. In addition, Growth Analysis’ studies indicate that consistent policy could help strengthen Swedish companies and position Swedish production in value chain niches with comparatively higher value-added, which better match Sweden’s comparative advantages.
Prerequisites for a green structural transformation of Swedish industry – synthesis report