ABSTRACT
The ecological constraints ahead, such as global warming, make a green industrial restructuring necessary, at least in the long run. A green industrial restructuring is necessary. As far as we know from the available empirical evidence, market-led restructuring will not be sufficient; a dedicated policy is needed to foster eco-restructuring. As in debates concerning industrial policy, it is acknowledged that industrial structural change is neither smooth nor frictionless, nor is it necessarily a result of changes in relative prices alone, as proposed, for example, by neoclassical theory. Many aspects of green industrial policy (GIP) still need clarification and further research. But limited as the present contribution may be, theoretical considerations and empirical evidence show that the implementation of GIP is a very difficult task. Regarding policy instruments, existing closed networks can be most successfully overcome when the demand side is targeted and the whole product chain is taken into account.
