The industrial policy requirements for a global climate stabilization project

Abstract

ABSTRACT This paper presents an industrial policy approach for advancing a global climate stabilization project. The centerpieces of the project are 1) dramatically improving energy efficiency standards in the stock of buildings, automobiles and public transportation systems, and industrial production processes; and 2) equally dramatically expanding the supply of clean renewable energy sources – primarily solar and wind power – available at competitive prices. Global investment spending in these areas will need to average about 2.5% of global GDP over 2024–2050 to achieve a net zero CO2 emissions global economy by 2050. The paper works within a policy approach similar to that advanced by Malcolm Sawyer that integrated industrial and macroeconomic policies targeted at achieving full employment.