The compound risks of climate catastrophe and Covid-19 have defined the year thus far. As the world continues to reel from the effects of the pandemic, and storms and wildfires dot the map, calls for marshaling a green recovery have proliferated.
The history of green investment thus far has been infamously more modest. In a comparison of the Japanese and American solar panel industries from 1973 – 2005, MAX JERNECK elucidates the rocky paths to financing low-carbon industry. From the paper:
"The United States was the birthplace of the solar cell, and American firms dominated the industry in the 1970s. Beginning in the early 1980s, the American photovoltaic (PV) industry lost ground to foreign, and particularly Japanese, competitors. By 2005, the American share of the global market had declined to under ten per cent.
In Japan, technologically innovative PV firms had ample financing and were sheltered from the turbulence of financial markets. In the United States, the financial system was unwilling to finance small entrepreneurial firms, causing the industry to become concentrated among large corporations. By identifying and evaluating 'difference makers,' it is possible to draw conclusions about which aspects of the low-carbon development process were amenable to human action, and therefore relevant to the task of devising a strategy for the future transition to a low-carbon economy. Knowing where to look requires a theory of both the mechanisms driving industrial change in general, and the particular institutional arrangements regulating them in the countries under study."
Link to the article.
- In a related paper for Science, Jerneck takes a closer look at the financing impediments to the solar industry in the US. Link.
- In the New Republic, Kate Aronoff writes on the prospects of a National Investment Authority. Link. Read also Saule Omarova's Data For Progress proposal for a NIA. Link.
- "On what foundations might an alternative economy be built? Neither population nor GDP will be its fundamental metric, but rather land scarcity." Troy Vettese in 2018 on a "half-earth" approach to climate catastrophe. Link. See also: Robert Pollin in 2019 on degrowth and a Green New Deal. Link.