An article on the concept of "green industrial revolution" as a driver for a reboosted economic growth. Can green technologies trigger a new "wave" of productivity gains, and thus growth, comparable or superior to that generated by the steam engine, the railways or electricity? Or do this wave of growth needs innovations of a different nature?
Highlights:
- GREEN TECHNOLOGY FOR A NEW WAVE OF GROWTH?
The concept of green growth emphasizes the fact that environmental protection is compatible with economic growth and can even enhance it. This concept brings together a diverse set of benefits: avoiding the economic cost of environmental degradation, green comparative advantage, green Keynesian stimulus, etc. Recently, green growth has been associated with the strong belief that green technology may be able to trigger a new “wave” of productivity gains, and thus growth, comparable or superior to that generated by the steam engine, the railways or electricity. What are the main drivers that sustain this hope of a "green industrial revolution"? How can we analyse this concept in the historical perspective of technological breakthroughs and of economic growth?
- THE TRANSFORMATIONAL ROLE OF TECHNOLOGY
The history of the industrial revolution and economic growth is much richer than that of technology: it is accompanied by drastic changes in the organisation of work and business, of social compromise, or of consumers' behaviour. We nevertheless focus here solely on the role of technologies, by putting forward the key characteristics of those that have shaped history. Beyond the ability of such technologies to reach large and diverse sectors, we highlight the way in which they were able to open doors to profound economic reorganisations with great productivity potential. They did not merely allow business as usual at a lower cost, but they enabled things to be done in a completely different way.
- THE LIMITS OF GREEN TECHNOLOGY
One may doubt the ability of the currently envisaged green technologies, which are at the intersection of energy and climate issues, to pave the way for such reorganisations. Green electricity remains electricity, while the green car remains a car. Economic organisation is certainly likely to change, especially under the influence of information and communication technology, but while new energy technologies must be thought of in this context of transformation, it is difficult today to see how they can play a leading role. The hope for a green industrial revolution and a new wave of growth is then based on technological breakthroughs and innovations of a different nature, such as the functionality economy.
