Skip to main content

A Green New Deal: Opportunities and Constraints

Part of the International Papers in Political Economy book series (IPPE)

Abstract

This chapter considers the opportunities and challenges for an effective ‘Green New Deal’ (GND), with a focus on the U.S. and Europe. We begin by reviewing the intellectual history of the GND and consider how the recent shifts in macroeconomic policy following the Covid-19 pandemic might support the case for a progressive green transition. Despite this opportunity, current GND strategies lack sufficient ambition and scale given the structural economic transformation required and remain constrained within the neoclassical ‘market-failure’ paradigm and/or short-term domestic Keynesian stimulus models. Policy outcomes are overly dependent on lightly regulated financial markets for the needed investment. A more transformative GND requires greater coherence between fiscal, regulatory, monetary and industrial policy spheres, with public financial institutions having a key role in driving mission-oriented innovation. GND strategies must be also more internationally focused, with high-income economies providing space for developing countries to industrialise within binding global carbon emission limits.

Keywords

  • Green New Deal
  • Sustainable finance
  • Monetary policy
  • Fiscal policy
  • Industrial policy
  • Innovation

JEL Classification

  • E49
  • E52
  • F19
  • H30

This is a preview of subscription content, access via your institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • DOI: 10.1007/978-3-030-84288-8_7
  • Chapter length: 49 pages
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
eBook
USD   139.00
Price excludes VAT (USA)
  • ISBN: 978-3-030-84288-8
  • Instant PDF download
  • Readable on all devices
  • Own it forever
  • Exclusive offer for individuals only
  • Tax calculation will be finalised during checkout
Hardcover Book
USD   179.99
Price excludes VAT (USA)

Notes

  1. 1.

    Although even this estimate relates to the EU’s former target of 40% emissions reductions from 1990 levels by 2030. The target has since been updated to a 55% reduction.

  2. 2.

    Emphasising, for example, the temporary nature of asset purchase programmes and the fact that they have not been undertaken with the explicit objective of funding governments (BIS, 2020).

  3. 3.

    Government investment in the care economy has also been shown to have superior employment outcomes relative to construction, with additional jobs created being both gender-balanced and compatible with the green transition (De Henau & Himmelweit, 2021).

References

  • Aghion, P., Hepburn, C., Teytelboym, A., & Zenghelis, D. (2014). Path dependence, innovation and the economics of climate change (Policy Paper). Centre for Climate Change Economics and Policy.

    Google Scholar 

  • Ameli, N., Drummond, P., Bisaro, A., Grubb, M., & Chenet, H. (2019). Climate finance and disclosure for institutional investors: Why transparency is not enough. Climatic Change, 160, 565–589.

    Google Scholar 

  • Amsden, A. (2001). The rise of “the rest”: Challenges to the west from late-industrializing economies. Oxford University Press.

    Google Scholar 

  • Andersson, A., & Atkinson, G. (2020). The distributional effects of a carbon tax: The role of income inequality (Working Paper No. 349). Grantham Research Institute on Climate Change and the Environment.

    Google Scholar 

  • Arnold, M. (2020, October 14). ECB to consider using climate risk to steer bond purchases, says Lagarde. Financial Times.

    Google Scholar 

  • Auerbach, A. J., & Gorodnichenko, Y. (2017). Fiscal stimulus and fiscal sustainability (Working Paper Series No. 23789). National Bureau of Economic Research. Available at: https://doi.org/10.3386/w23789.

  • Bank of England. (2020). The Bank of England’s climate-related financial disclosure 2020. Available at: https://www.bankofengland.co.uk/-/media/boe/files/annual-report/2020/climate-related-financial-disclosure-report-2019-20.pdf.

  • BankTrack, Rainforest Action Network. (2020). Banking on climate change. Available at: https://www.banktrack.org/download/banking_on_climate_change_fossil_fuel_finance_report_2020/banking_on_climate_change__2020_vf_2.pdf.

  • Barbier, E. (2010). A global Green New Deal. Cambridge University Press.

    Google Scholar 

  • Barbier, E. (2016). Building the green economy. Canadian Public Policy, 42, S1–S9. Available at: https://doi.org/10.3138/cpp.2015-017.

  • Barkawi, A., & Zadek, S. (2021). Governing finance for sustainable prosperity (Discussion Note). Council on Economic Policies.

    Google Scholar 

  • Bartsch, E., Bénassy-Quéré, A., Corsetti, G., & Debrun, X. (2020). It’s all in the mix: How monetary and fiscal policies can work or fail together (Geneva Reports on the World Economy No. 23). Centre for Economic Policy Research.

    Google Scholar 

  • Battiston, S., Mandel, A., Monasterolo, I., Schütze, F., & Visentin, G. (2017). A climate stress-test of the financial system. Nature Climate Change, 7, 283.

    Google Scholar 

  • Bayliss, K., & Van Waeyenberge, E. (2018). Unpacking the public private partnership revival. The Journal of Development Studies, 54, 577–593.

    Google Scholar 

  • BEIS (2019), Green finance strategy: Transforming finance for a greener future. (Industrial Strategy). HM Government.

    Google Scholar 

  • Bezemer, D., Grydaki, M., & Zhang, L. (2016). More mortgages, lower growth? Economic Inquiry, 54, 652–674. Available at: https://doi.org/10.1111/ecin.12254.

  • Bezemer, D., Ryan-Collins, J., van Lerven, F., & Zhang, L. (2018). Credit where it’s due: A historical, theoretical and empirical review of credit guidance policies in the 20th century (Working Paper Series No. 2018-11). UCL Institute for Innovation and Public Purpose.

    Google Scholar 

  • BIS. (2020). A monetary lifeline: Central banks’ crisis response. In BIS annual economic report 2020. Bank for International Settlements.

    Google Scholar 

  • Blanchard, O. (2019). Public debt and low interest rates. American Economic Review, 109, 1197–1229.

    Google Scholar 

  • Blanchard, O., & Pisani-Ferry, J. (2020). Monetisation: Do not panic. Blog, VoxEU.org. Available at: https://voxeu.org/article/monetisation-do-not-panic.

  • Block, F. L., & Keller, M. R. (2011). State of innovation: The U.S. government’s role in technology development. Routledge.

    Google Scholar 

  • Bolton, P., Després, M., Pereira da Silva, L., Samama, F., & Svartzman, R. (2020). The green swan: Central banking and financial stability in the age of climate change. Bank for International Settlements. Available at: https://www.bis.org/publ/othp31.pdf.

  • Botzen, W. J. W., Gowdy, J. M., & Van den Bergh, J. C. J. M. (2008). Cumulative CO2 emissions: Shifting international responsibilities for climate debt. Climate Policy, 8, 569–576.

    Google Scholar 

  • Brainard, L. (2021). The role of financial institutions in tackling the challenges of climate change. Speech, IIF U.S. Climate Finance Summit: Financing a Pro Growth Pro Markets Transition to a Sustainable, Low-Carbon Economy, 18th February 2021. Available at: https://www.federalreserve.gov/newsevents/speech/brainard20210218a.htm.

  • Brand, U., & Wissen, M. (2013). Crisis and continuity of capitalist society-nature relationships: The imperial mode of living and the limits to environmental governance. Review of International Political Economy, 20, 687–711.

    Google Scholar 

  • Buchner, B., Clark, A., & Falconer, A. (2019). Global landscape of climate finance 2019. Climate Policy Initiative. Available at: https://climatepolicyinitiative.org/wp-content/uploads/2019/11/2019-Global-Landscape-of-Climate-Finance.pdf.

  • Campiglio, E., Dafermos, Y., Monnin, P., Ryan-Collins, J., Schotten, G., & Tanaka, M. (2018). Climate change challenges for central banks and financial regulators. Nature Climate Change, 8, 462–468.

    Google Scholar 

  • Carbon Tracker. (2020). How to waste over half a trillion dollars: The economic implications of deflationary renewable energy for coal power investments (Report). Available at: https://climatepolicyinitiative.org/wp-content/uploads/2019/11/2019-Global-Landscape-of-Climate-Finance.pdf.

  • Carney, M. (2015, September 29). Breaking the tragedy of the horizon—Climate change and financial stability. Speech. Available at: https://www.bankofengland.co.uk/-/media/boe/files/speech/2015/breaking-the-tragedy-of-the-horizon-climate-change-and-financial-stability.pdf.

  • Cavallino, P., & De Fiore, F. (2020). Central banks’ response to Covid-19 in advanced economies (BIS Bulletin No. 21). Bank for International Settlements.

    Google Scholar 

  • Chenet, H., Ryan-Collins, J., & van Lerven, F. (2021). Finance, climate-change and radical uncertainty: Towards a precautionary approach to financial policy. Ecological Economics, 183, 106–157.

    Google Scholar 

  • Christophers, B. (2017). Climate change and financial instability: Risk disclosure and the problematics of neoliberal governance. Annals of the American Association of Geographers, 107, 1108–1127.

    Google Scholar 

  • Christophers, B. (2019). Environmental beta or how institutional investors think about climate change and fossil fuel risk. Annals of the American Association of Geographers, 109, 754–774.

    Google Scholar 

  • Claeys, G., & Tagliapietra, S. (2020). A trillion reasons to scrutinise the Green Deal Investment Plan. Blog, Bruegel. Available at: https://www.bruegel.org/2020/01/a-trillion-reasons-to-scrutinise-the-green-deal-investment-plan/.

  • Constâncio, V. (2020). The return of fiscal policy and the Euro Area fiscal rule. Comparative Economic Studies, 62, 358–372.

    Google Scholar 

  • Crow, D. (2020, August 6). The next virus pandemic is not far away. Financial Times. Available at: https://www.ft.com/content/dc33f21b-740f-4be8-9947-b47439f557d2.

  • Dafermos, Y., Gabor, D., & Michell, J. (2021a). The Wall Street Consensus in pandemic times: What does it mean for climate-aligned development? Canadian Journal of Development Studies/Revue canadienne d'études du développement, 1–14.

    Google Scholar 

  • Dafermos, Y., Gabor, D., Nikolaidi, M., Pawloff, A., & van Lerven, F. (2021b). Greening the Eurosystem collateral framework: How to decarbonise the ECB’s monetary policy (Policy Report). New Economics Foundation. Available at: https://neweconomics.org/uploads/files/Collateral-Framework.pdf.

  • Dafermos, Y., Gabor, D., Nikolaidi, M., Pawloff, A., & van Lerven, F. (2020). Decarbonising is easy: Beyond market neutrality in the ECB’s corporate QE (Policy Report). New Economics Foundation. Available at: https://neweconomics.org/uploads/files/Decarbonising-is-easy.pdf.

  • Dafermos, Y., Gabor, D., Nikolaidi, M., & van Lerven, F. (2021c). Greening the UK financial system—A fit for purpose approach (Policy Note No. 226). SUERF: The European Money and Finance Forum. Available at: https://www.suerf.org/policynotes/21233/greening-the-uk-financial-system-a-fit-for-purpose-approach.

  • Dasgupta, P. (2021). The economics of biodiversity: The Dasgupta review. HM Treasury.

    Google Scholar 

  • De Henau, J., & Himmelweit, S. (2021). A care-led recovery from covid-19: Investing in high-quality care to stimulate and rebalance the economy. Feminist Economics, 27, 453–469.

    Google Scholar 

  • Dechezlepretre, A., Martin, R., & Mohnen, M. (2017). Knowledge spillovers from clean and dirty technologies (Working Paper No. 135). Grantham Research Institute on Climate Change and the Environment.

    Google Scholar 

  • Deleidi, M., & Mazzucato, M. (2021). Directed innovation policies and the supermultiplier: An empirical assessment of mission-oriented policies in the US economy. Research Policy, 50, 104–151.

    Google Scholar 

  • Deleidi, M., & Mazzucato, M. (2019). Putting austerity to bed: Technical progress, aggregate demand and the supermultiplier. Review of Political Economy, 31, 315–335.

    Google Scholar 

  • Deleidi, M., Mazzucato, M., & Semieniuk, G. (2020). Neither crowding in nor out: Public direct investment mobilising private investment into renewable electricity projects. Energy Policy, 140, 111–195.

    Google Scholar 

  • Detter, D., Fölster, S., & Ryan-Collins, J. (2020). Public wealth funds: Supporting economic recovery and sustainable growth (Working Paper No. 2020–16). Institute for Innovation and Public Purpose, University College London.

    Google Scholar 

  • DiEM25. (2019). The Green New Deal for Europe. A blueprint for Europe’s just transition. Democracy in Europe Movement 2025. Available at: https://report.gndforeurope.com.

  • Dikau, S., Robins, N., & Volz, U. (2020). A toolbox of sustainable crisis response measures for central banks and supervisors, second edition: Lessons from practice (INSPIRE Briefing Paper). Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science and SOAS Centre for Sustainable Finance, London.

    Google Scholar 

  • Dikau, S., & Ryan-Collins, J. (2017). Green central banking in emerging market and developing country economies (Policy Report). New Economics Foundation. Available at: https://eprints.soas.ac.uk/24876/1/Green-Central-Banking.pdf.

  • D’Orazio, P., & Popoyan, L. (2019). Fostering green investments and tackling climate-related financial risks: Which role for macroprudential policies? Ecological Economics, 160, 25–37.

    Google Scholar 

  • D’Orazio, P., Popoyan, L., & Monnin, P. (2019). Prudential regulation can help in tackling climate change (Blog). Council on Economic Policies. Available at: https://www.cepweb.org/prudential-regulation-can-help-in-tackling-climate-change.

  • Eberle, D. U., & von Helmolt, D. R. (2010). Sustainable transportation based on electric vehicle concepts: A brief overview. Energy & Environmental Science, 3, 689–699.

    Google Scholar 

  • ECB. (2020). Financial stability review, November 2020. European Central Bank. Available at: https://www.ecb.europa.eu/pub/pdf/fsr/ecb.fsr202011~b7be9ae1f1.en.pdf.

  • Epstein, G. (2006). Central banks as agents of economic development (Working Paper No. 2006-54). World Institute for Development Economic Research (UNU-WIDER). Available at: https://www.wider.unu.edu/sites/default/files/rp2006-54.pdf.

  • European Commission. (2020a). The investEU programme: Questions and answers. Available at: https://ec.europa.eu/commission/presscorner/detail/lt/memo_19_2135.

  • European Commission. (2020b). EU budget for recovery: Questions and answers on the just transition mechanism. Available at: https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_931.

  • European Commission. (2020c). Questions and answers on the adoption of the EU’s long-term budget for 2021–2027. Available at: https://ec.europa.eu/commission/presscorner/detail/en/QANDA_20_2465.

  • European Commission. (2019a). The European green deal (Communication No. COM(2019) 640 final). European Commission, Brussels. Available at: https://eur-lex.europa.eu/resource.html?uri=cellar:b828d165-1c22-11ea-8c1f-01aa75ed71a1.0002.02/DOC_1&format=PDF.

  • European Commission. (2019b). Guidelines on reporting climate-related information (Communication from the Commission No. C(2019) 4490). Brussels. Available at: https://ec.europa.eu/finance/docs/policy/190618-climate-related-information-reporting-guidelines_en.pdf.

  • European Commission. (2018). Action plan: Financing sustainable growth (Communication No. COM(2018) 97). European Commission, Brussels. Available at: https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52018DC0097&from=EN.

  • European Court of Auditors. (2018). Public private partnerships in the EU: Widespread shortcomings and limited benefits (Special Report pursuant to Article 287[4]). Available at: https://www.eca.europa.eu/Lists/ECADocuments/SR18_09/SR_PPP_EN.pdf.

  • Fatás, A., & Summers, L. (2015). The permanent effects of fiscal consolidations (C.E.P.R. Discussion Papers No. 10902). Center for Economic Policy Research.

    Google Scholar 

  • Finance Watch. (2021). Shaping the future or missing the past: How resilient are national fiscal plans of Germany, France, and Spain? (Policy Report). Finance Watch. Available at: https://rethinktherecovery.org/sites/default/files/2021-04/FW_Rethink-the-Recovery_Summary-Country-Plan-Analysis.pdf.

  • Freeman, C., & Perez, C. (1988). Structural crises of adjustment: Business cycles and investment behaviour. In G. Dosi, C. Freeman, R. R. Nelson, G. Silverberg, & L. L. G. Soete (Eds.), Technical change and economic theory. Pinter Publishers.

    Google Scholar 

  • Friedman, T. L. (2007, January 19). Opinion: A warning from the garden. New York Times. Available at: https://www.nytimes.com/2007/01/19/opinion/19friedman.html.

  • Gabor, D. (2021). The Wall Street consensus. Development and Change, 1–31.

    Google Scholar 

  • Galí, J. (2020). The effects of a money-financed fiscal stimulus. Journal of Monetary Economics, 115, 1–19.

    Google Scholar 

  • Galvin, R., & Healy, N. (2020). The Green New Deal in the United States: What it is and how to pay for it. Energy Research & Social Science, 67, 101529.

    Google Scholar 

  • Geels, F. W., & Schot, J. (2007). Typology of sociotechnical transition pathways. Research Policy, 36, 399–417.

    Google Scholar 

  • Gewirtzman, J., Natson, S., & Richards, J.-A. (2018). Financing loss and damage: Reviewing options under the Warsaw International Mechanism. Climate Policy, 18, 1076–1086.

    Google Scholar 

  • Giles, C. (2020, October 14). IMF says austerity is not inevitable to ease pandemic impact on public finances. Financial Times. Available at: https://www.ft.com/content/722ef9c0-36f6-4119-a00b-06d33fced78f.

  • Giles, C. (2021, January 4). OECD warns governments to rethink constraints on public spending. Financial Times. Available at: https://www.ft.com/content/7c721361-37a4-4a44-9117-6043afee0f6b.

  • Grubb, M., Drummond, P., & Poncia, A. (2021). Induced innovation in energy technologies and systems: A review of evidence and potential implications for CO2 mitigation. Environmental Research Letters, 16, 043007

    Google Scholar 

  • Hafner, S., Jones, A., Anger-Kraavi, A., & Pohl, J. (2020). Closing the green finance gap—A systems perspective. Environmental Innovation and Societal Transitions, 34, 26–60.

    Google Scholar 

  • Hall, S., Foxon, T. J., & Bolton, R. (2017). Investing in low-carbon transitions: Energy finance as an adaptive market. Climate Policy, 17, 280–298.

    Google Scholar 

  • Harvey, F. (2020, June 6). Covid-19 relief for fossil fuel industries risks green recovery plans. The Guardian. Available at: https://www.theguardian.com/environment/2020/jun/06/covid-19-relief-for-fossil-fuel-industries-risks-green-recovery-plans.

  • Hepburn, C., O’Callaghan, B., Stern, N., Stiglitz, J., & Zenghelis, D. (2020). Will COVID-19 fiscal recovery packages accelerate or retard progress on climate change? Oxford Review of Economic Policy, 36, S359–S381.

    Google Scholar 

  • Hickel, J. (2020). Quantifying national responsibility for climate breakdown: An equality-based attribution approach for carbon dioxide emissions in excess of the planetary boundary. The Lancet Planetary Health, 4, e399–e404.

    Google Scholar 

  • HM Treasury. (2021, March 3). Remit for the Monetary Policy Committee (MPC). Letter to the Bank of England. Available at: https://www.bankofengland.co.uk/-/media/boe/files/letter/2021/march/2021-mpc-remit-letter.pdf.

  • Hodgson, C., Romei, V., & Thomas, N. (2021, March 3). Bank of England given new mandate to buy ‘green’ bonds. Financial Times. Available at: https://www.ft.com/content/f436d69b-2bf0-48cd-bb34-644856fba17f.

  • Hook, L., & Vincent, M. (2020, November 12). Green business reporting rules at risk of pale response. Financial Times. Available at: https://www.ft.com/content/ad01f2c9-9eb0-4db6-9898-220c688d16c2.

  • IMF. (2019). World Economic Outlook. International Monetary Fund. Available at: https://www.imf.org/en/Publications/WEO/Issues/2019/10/01/world-economic-outlook-october-2019.

  • IMF. (2021). Fiscal monitor update January 2021. International Monetary Fund. Available at: https://www.imf.org/en/Publications/FM/Issues/2021/01/20/fiscal-monitor-update-january-2021.

  • IPBES. (2019). Summary for policymakers. The global assessment report on Biodiversity and Ecosystem Services. Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services, Bonn. Available at: https://ipbes.net/sites/default/files/2020-02/ipbes_global_assessment_report_summary_for_policymakers_en.pdf.

  • IPCC. (2018). Summary for policymakers (Global Warming of 1.5°C. An IPCC Special Report on the Impacts of Global Warming of 1.5°C above Pre-Industrial Levels). Intergovernmental Panel on Climate Change, Geneva. Available at: https://www.ipcc.ch/site/assets/uploads/sites/2/2019/05/SR15_SPM_version_report_L.

  • R.pdfIRENA. (2020). Global landscape of renewable energy finance 2020. International Renewable Energy Agency.

    Google Scholar 

  • Jaffe, A. B., Newell, R. G., & Stavins, R. N. (2005). A tale of two market failures: Technology and environmental policy. Ecological Economics, 54, 164–174.

    Google Scholar 

  • Jourdan, S., & Kalinowski, W. (2019). Aligning monetary policy with the EU’s climate targets (Policy Note). Veblen Institute and Positive Money Europe. Available at: https://www.veblen-institute.org/IMG/pdf/aligning_monetary_policy_with_eu_s_climate_targets.pdf.

  • Kallis, G., Kerschner, C., & Martinez-Alier, J. (2012). The economics of degrowth. Ecological Economics, 84, 172–180.

    Google Scholar 

  • Kattel, R., & Mazzucato, M. (2018). Mission-oriented innovation policy and dynamic capabilities in the public sector. Industrial and Corporate Change, 27, 787–801.

    Google Scholar 

  • Kattel, R., Mazzucato, M., Ryan-Collins, J., & Sharpe, S. (2018). The economics of change: Policy and appraisal for missions, market shaping and public purpose (Working Paper Series No. 2018–06). Institute for Innovation and Public Purpose, University College London.

    Google Scholar 

  • Kaur Paul, H. (2021). Towards reparative climate justice: From crises to liberations (Policy Report). Common Wealth.

    Google Scholar 

  • Kedward, K., Ryan-Collins, J., & Buller, A. (2021). Quantitative easing and nature loss: Exploring nature-related financial risks and impacts in the european central bank's corporate bond portfolio. UCL Institute for Innovation and Public Purpose Policy Report 2021/02. https://doi.org/10.2139/ssrn.3922913.

  • Kemp-Benedict, E. (2018). Investing in a green transition. Ecological Economics, 153, 218–236.

    Google Scholar 

  • Kliesen, K. L., & Bokun, K. (2020). What is yield curve control? St. Louis Fed on the Economy Blog. Available at: https://www.stlouisfed.org/on-the-economy/2020/august/what-yield-curve-control.

  • Krebel, L., Stirling, A., van Lerven, F., & Arnold, S. (2020). Building a green stimulus for COVID-19: A recovery plan for a greener, fairer future (Policy Report). New Economics Foundation.

    Google Scholar 

  • Lagarde, C. (2020). The monetary policy strategy review: Some preliminary considerations. Speech, ECB and Its Watchers XXI conference, 30th September 2020. Available at: https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200930~169abb1202.en.html.

  • Lallemand, B. (2021). An open letter sent in February to European Union leaders asking them to review EU economic governance. Available at: https://www.finance-watch.org/publication/reshaping-the-european-fiscal-framework-eng/.

  • Laplane, A., & Mazzucato, M. (2020). Socializing the risks and rewards of public investments: Economic, policy, and legal issues. Research Policy, X 2, 100008.

    Google Scholar 

  • Lazonick, W., & Mazzucato, M. (2013). The risk-reward nexus in the innovation-inequality relationship: Who takes the risks? Who gets the rewards? Industrial and Corporate Change, 22, 1093–1128.

    Google Scholar 

  • Lee, J.-H., & Woo, J. (2020). Green New Deal policy of South Korea: Policy innovation for a sustainability transition. Sustainability, 12(23), 10191.

    Google Scholar 

  • Liddle, B. (2018). Consumption-based accounting and the trade-carbon emissions nexus. Energy Economics, 69, 71–78.

    Google Scholar 

  • Lipsey, R., & Lancaster, K. (1956). The general theory of second best. Review of Economic Studies, 24, 11–32.

    Google Scholar 

  • Macfarlane, L., & Mazzucato, M. (2018). State investment banks and patient finance: An international comparison (Policy Report No. 2018–01). Institute for Innovation and Public Purpose, University College London.

    Google Scholar 

  • Mastini, R., Kallis, G., & Hickel, J. (2021). A Green New Deal without growth? Ecological Economics, 179, 106832.

    Google Scholar 

  • Mazzucato, M. (2013). The entrepreneurial state: Debunking public vs. private sector myths. Anthem Press.

    Google Scholar 

  • Mazzucato, M. (2016). From market fixing to market-creating: A new framework for innovation policy. Industry & Innovation, 23, 140–156.

    Google Scholar 

  • Mazzucato, M. (2018). Mission-oriented research & innovation in the European Union: A problem-solving approach to fuel innovation-led growth. European Commission. Available at: https://ec.europa.eu/info/sites/info/files/mazzucato_report_2018.pdf.

  • Mazzucato, M., & McPherson, M. (2018). The Green New Deal: A bold mission-oriented approach (Policy Brief No. 4). Institute for Innovation and Public Purpose, University College London.

    Google Scholar 

  • Mazzucato, M., & Penna, C. (2016). Beyond market failures: The market creating and shaping roles of state investment banks. Journal of Economic Policy Reform, 19, 305–326.

    Google Scholar 

  • Mazzucato, M., & Perez, C. (2015). Innovation as growth policy. In J. Fagerberg, S. Laestadius, & B. Martin (Eds.), The triple challenge for Europe: Economic development, climate change and governance. Oxford University Press.

    Google Scholar 

  • Mazzucato, M., & Ryan-Collins, J. (2019). Putting value creation back into “public value”: From market-fixing to market-shaping (Working Paper Series No. 2019–05). Institute for Innovation and Public Purpose, University College London.

    Google Scholar 

  • Mazzucato, M., & Semieniuk, G. (2018). Financing renewable energy: Who is financing what and why it matters. Technological Forecasting and Social Change, 127, 8–22.

    Google Scholar 

  • McCollum, D. L., Zhou, W., & Bertram, C. (2018). Energy investment needs for fulfilling the Paris Agreement and achieving the sustainable development goals. Nature Energy, 3, 589–599.

    Google Scholar 

  • Mercure, J.-F., Pollitt, H., Chewpreecha, U., Salas, P., Foley, A. M., Holden, P. B., & Edwards, N. R. (2014). The dynamics of technology diffusion and the impacts of climate policy instruments in the decarbonisation of the global electricity sector. Energy Policy, 73, 686–700.

    Google Scholar 

  • Minsky, H. P. (1986). Stabilizing an unstable economy. Yale University Press.

    Google Scholar 

  • NEF. (2008). A Green New Deal: Joined-up policies to solve the triple crunch of the credit crisis, climate change and high oil prices (Policy Report). New Economics Foundation.

    Google Scholar 

  • Nelson, R., & Winter, S. (1974). Neoclassical vs. evolutionary theories of economic growth: Critique and prospectus. Economic Journal, 84, 886–905.

    Google Scholar 

  • Nersisyan, Y., & Wray, R. (2019). How to pay for the Green New Deal (Working Paper No. 931). Levy Economics Institute of Bard College.

    Google Scholar 

  • NGFS. (2020). Guide to climate scenario analysis for central banks and supervisors (Technical Document). Network for Greening the Financial System.

    Google Scholar 

  • NGFS. (2021). Adapting central bank operations to a hotter world: Reviewing some options (Technical Document). Network for Greening the Financial System.

    Google Scholar 

  • OECD. (2020). Beyond growth: Towards a new economic approach, new approaches to economic challenges. Organisation for Economic Cooperation and Development.

    Google Scholar 

  • O’Neill, D. W., Fanning, A. L., Lamb, W. F., & Steinberger, J. K. (2018). A good life for all within planetary boundaries. Nature Sustainability, 1, 88–95.

    Google Scholar 

  • Ostrom, E. (1994). Neither market nor state: Governance of common-pool resources in the twenty-first century. In International Food Policy Research Institute. Presented at the International Food Policy Research Institute, Washington, DC.

    Google Scholar 

  • Ostrom, E. (2010). Polycentric systems for coping with collective action and global environmental change. Global Environmental Change, 20, 550–557.

    Google Scholar 

  • Ostry, J. D., Loungani, P., & Furceri, D. (2016). Neoliberalism: Oversold? Finance and Development, 52(2). International Monetary Fund.

    Google Scholar 

  • Oustry, A., Erkan, B., Svartzman, R., & Weber P-F. (2020). Climate-related risks and central banks’ collateral policy: A methodological experiment (Working Paper No. 790). Banque de France.

    Google Scholar 

  • Palley, T. (2019). Macroeconomics vs. modern money theory: Some unpleasant Keynesian arithmetic and monetary dynamics. Real-World Economics Review, 148–155.

    Google Scholar 

  • Pekanov, A., & Schratzenstaller, M. (2020). The role of fiscal rules in relation with the green economy (Study requested by the ECON committee No. PE 614.524). Economic Governance Support Unit and the Policy Department A. European Parliament’s Committee on Economic and Monetary Affairs.

    Google Scholar 

  • Perry, K. (2020). Realising climate reparations: Towards a global climate stabilization fund and resilience fund programme for loss and damage in marginalised and former colonised societies (SSRN Paper). Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3561121.

  • Peters, G. P., Minx, J. C., Weber, C. L., & Edenhofer, O. (2011). Growth in emission transfers via international trade from 1990 to 2008. Proceedings of the National Academy of Sciences, 108, 8903–8908.

    Google Scholar 

  • Pettifor, A. (2019). The case for the Green New Deal. Verso.

    Google Scholar 

  • Philipponnat, T. (2020). Breaking the climate-finance doom loop (Policy Report). Finance Watch.

    Google Scholar 

  • Polanyi, K. (1957). The great transformation: The political and economic origins of our time. Beacon Press.

    Google Scholar 

  • Popp, D. (2011). International technology transfer, climate change, and the clean development mechanism. Review of Environmental Economics and Policy, 5, 131–152.

    Google Scholar 

  • Raworth, K. (2012). A safe and just space for humanity: Can we live within the doughnut? Oxfam discussion paper. Available at: https://d1tn3vj7xz9fdh.cloudfront.net/s3fs-public/file_attachments/dp-a-safe-and-just-space-for-humanity-130212-en_5.pdf.

  • Robins, N., Dikau, S., & Volz, U. (2021). Net-zero central banking: A new phase in greening the financial system (Policy Report). Grantham Research Institute on Climate Change and the Environment, London School of Economics.

    Google Scholar 

  • Ruiz, J. R., & Stupariu, P. (2021). A Green New Deal and debt sustainability for the post COVID-19 world. International Review of Applied Economics, 35, 288–307.

    Google Scholar 

  • Ryan-Collins, J. (2019). Beyond voluntary disclosure: Why a “market-shaping” approach to financial regulation is needed to meet the challenge of climate change (SUERF Policy Note No. Issue No. 61). SUERF: The European Money and Finance Forum.

    Google Scholar 

  • Sager, L. (2019). The global consumer incidence of carbon pricing: Evidence from trade (Working Paper No. 320). Grantham Research Institute on Climate Change and the Environment.

    Google Scholar 

  • Satow, A. (2019, March 22). Our new movement aims to propel labour into a radical Green New Deal. The Guardian. Available at: https://www.theguardian.com/commentisfree/2019/mar/22/movement-propel-labour-radical-green-new-deal.

  • Schiller, R. J. (2019). Narrative economics: How stories go viral and drive major economic events. Princeton University Press.

    Google Scholar 

  • Schnabel, I. (2020, September 28). When markets fail—The need for collective action in tackling climate change. Speech, European Sustainable Finance Summit. Available at: https://www.ecb.europa.eu/press/key/date/2020/html/ecb.sp200928_1~268b0b672f.en.html.

  • Schoenmaker, D., & Van Tilburg, R. (2016). What role for financial supervisors in addressing environmental risks? Comparative Economic Studies, 58, 317–334.

    Google Scholar 

  • Schumpeter, J. (1983). The theory of economic development. Transaction Publishers.

    Google Scholar 

  • Simon, F. (2020, April 29). Green deal will be ‘our motor for the recovery’, von der Leyen says. EURACTIV. Available at: https://www.euractiv.com/section/energy-environment/news/green-deal-will-be-our-motor-for-the-recovery-von-der-leyen-says/.

  • Spencer, R. W., & Yohe, W. P. (1970). The ‘crowding out’ of private expenditures by fiscal policy actions (Review). Federal Reserve Bank of St. Louis.

    Google Scholar 

  • Storm, S. (2020). The EU’s green deal: Bismarck’s ‘what is possible’ versus Thunberg’s ’what is Imperative’ (INET Working Paper Series No. 117). Institute for New Economic Thinking.

    Google Scholar 

  • Summers, L. (2021, February 4). Opinion: The Biden stimulus is admirably ambitious. But it brings some big risks, too. The Washington Post. Available at: https://www.washingtonpost.com/opinions/2021/02/04/larry-summers-biden-covid-stimulus/.

  • Svartzman, R., & Althouse, J. (2020). Greening the international monetary system? Not without addressing the political ecology of global imbalances. Review of International Political Economy, 1–26.

    Google Scholar 

  • Táíwò, O., & Cibralic, B. (2020, October 10). The case for climate reparations. Foreign Policy. Available at: https://foreignpolicy.com/2020/10/10/case-for-climate-reparations-crisis-migration-refugees-inequality/.

  • Tiftik, E., & Mahmood, K. (2021). Global debt monitor: COVID drives debt surge—Stabilization ahead? Institute of International Finance.

    Google Scholar 

  • Tobin, J. (1975). Keynesian models of recession and depression. Cowles Foundation for Research in Economics, Yale University.

    Google Scholar 

  • Tooze, A. (2021, April 21). America’s race to net zero: Does Joe Biden’s climate plan go far enough? New Statesman.

    Google Scholar 

  • UNCTAD. (2019). A new multilateralism for shared prosperity: Geneva principles for a global Green New Deal. United Nations Conference on Trade and Development.

    Google Scholar 

  • UNCTAD. (2020). Investing in the SDGs. In World Investment Report 2020. United Nations Conference on Trade and Development.

    Google Scholar 

  • UNDESA. (2020). World Social Report 2020. United Nations Department of Economic and Social Affairs.

    Google Scholar 

  • UNEP. (2009). A global Green New Deal. United Nations Environment Programme.

    Google Scholar 

  • Unruh, G. C. (2000). Understanding carbon lock-in. Energy Policy, 28, 817–830.

    Google Scholar 

  • van ’t Klooster, J., & Van Tilburg, R. (2020). Targeting a sustainable recovery with Green TLTROs (Policy Report). Positive Money Europe and Sustainable Finance Lab.

    Google Scholar 

  • Varoufakis, Y., & Adler, D. (2020, February 7). The EU’s green deal is a colossal exercise in greenwashing. The Guardian.

    Google Scholar 

  • Vivid Economics. (2021). Greenness of stimulus index: An assessment of COVID-19 stimulus by G20 countries and other major economies in relation to climate action and biodiversity goals (Policy Report: February 2021 Release). Available at: https://www.vivideconomics.com/wp-content/uploads/2021/02/Greennes-of-Stimulus-Index-5th-Edition-FINAL-VERSION-09.02.21.pdf.

  • Volz, U., Akhtar, S., Gallagher, K. P., Griffith-Jones, S., Haas, J., & Kraemer, M. (2020). Debt relief for a green and inclusive recovery: A proposal (Policy Report). Center for Sustainable Finance, SOAS, University of London.

    Google Scholar 

  • White House. (2021). FACT SHEET: The American jobs plan. Statement. Available at: https://www.whitehouse.gov/briefing-room/statements-releases/2021/03/31/fact-sheet-the-american-jobs-plan/.

  • WMO. (2018). WMO provisional statement on the state of the climate in 2018. World Meterological Organisation.

    Google Scholar 

  • Wolf, M. (2020, April 9). Monetary financing demands careful and sober management. Financial Times. Available at: https://www.ft.com/content/dc233540-798e-11ea-9840-1b8019d9a987.

  • Woodford, M. (2003). Interest and prices: Foundations of a theory of monetary policy. Princeton University Press.

    Google Scholar 

  • World Bank. (2020). Poverty and shared prosperity 2020: Reversals of fortune. World Bank.

    Google Scholar 

  • Zenghelis, D. (2016). Decarbonisation, innovation, and the economics of climate change. In M. Mazzucato & M. Jacobs (Eds.), Rethinking capitalism. Wiley.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Katie Kedward .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2022 The Author(s), under exclusive license to Springer Nature Switzerland AG

About this chapter

Verify currency and authenticity via CrossMark

Cite this chapter

Kedward, K., Ryan-Collins, J. (2022). A Green New Deal: Opportunities and Constraints. In: Arestis, P., Sawyer, M. (eds) Economic Policies for Sustainability and Resilience. International Papers in Political Economy. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-84288-8_7

Download citation

  • DOI: https://doi.org/10.1007/978-3-030-84288-8_7

  • Published:

  • Publisher Name: Palgrave Macmillan, Cham

  • Print ISBN: 978-3-030-84287-1

  • Online ISBN: 978-3-030-84288-8

  • eBook Packages: Economics and FinanceEconomics and Finance (R0)