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Government intervention in green industries: lessons from the wind turbine and the organic food industries in Denmark

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Government intervention in green industries: lessons from the wind turbine and the organic food industries in Denmark. / Daugbjerg, Carsten; Svendsen, Gert Tinggaard.

I: Environment, Development and Sustainability, Bind 13, Nr. 2, 2011, s. 293-307.

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

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Daugbjerg, Carsten ; Svendsen, Gert Tinggaard. / Government intervention in green industries: lessons from the wind turbine and the organic food industries in Denmark. I: Environment, Development and Sustainability. 2011 ; Bind 13, Nr. 2. s. 293-307.

Bibtex

@article{746a1fc42bae467db395c8415ad54c22,
title = "Government intervention in green industries: lessons from the wind turbine and the organic food industries in Denmark",
abstract = "Government intervention in green infant industries may be justified as a strategy to increase the provision of public goods. How should government policies be designed to promote such industries? One way to analyse this question is to compare government intervention in green infant industries in which it has been successful with green infant industries in which it has been less successful. The Danish government has intervened intensively in the wind turbine industry and organic farming sector mainly for environmental reasons since 1992 and 1987 respectively, but with very different impacts. While the electricity market share of wind energy reached 20% in 2007, organic food consumption lags behind with a food market share of approximately 8.5% in 2007. This paper compares the packages of policy instruments applied in the two industrial sectors and assesses whether differences in instrument choice may explain the significant differences in market shares. It is demonstrated that government intervention in the wind turbine industry has emphasised the use of policy instruments designed to increase demand for wind energy, whereas organic farming policy has put more emphasis on instruments motivating farmers to increase supply. This may be an important factor explaining variance in growth. Finally, the paper analyses whether the lessons from government policy aimed at promoting the wind turbine industry can be transferred to organic farming policy. ",
keywords = "policy instruments, policy impact, public goods, wind energy, organic farming, infant industries",
author = "Carsten Daugbjerg and Svendsen, {Gert Tinggaard}",
year = "2011",
doi = "10.1007/s10668-010-9262-8",
language = "English",
volume = "13",
pages = "293--307",
journal = "Environment, Development and Sustainability",
issn = "1387-585X",
publisher = "Springer",
number = "2",

}

RIS

TY - JOUR

T1 - Government intervention in green industries: lessons from the wind turbine and the organic food industries in Denmark

AU - Daugbjerg, Carsten

AU - Svendsen, Gert Tinggaard

PY - 2011

Y1 - 2011

N2 - Government intervention in green infant industries may be justified as a strategy to increase the provision of public goods. How should government policies be designed to promote such industries? One way to analyse this question is to compare government intervention in green infant industries in which it has been successful with green infant industries in which it has been less successful. The Danish government has intervened intensively in the wind turbine industry and organic farming sector mainly for environmental reasons since 1992 and 1987 respectively, but with very different impacts. While the electricity market share of wind energy reached 20% in 2007, organic food consumption lags behind with a food market share of approximately 8.5% in 2007. This paper compares the packages of policy instruments applied in the two industrial sectors and assesses whether differences in instrument choice may explain the significant differences in market shares. It is demonstrated that government intervention in the wind turbine industry has emphasised the use of policy instruments designed to increase demand for wind energy, whereas organic farming policy has put more emphasis on instruments motivating farmers to increase supply. This may be an important factor explaining variance in growth. Finally, the paper analyses whether the lessons from government policy aimed at promoting the wind turbine industry can be transferred to organic farming policy.

AB - Government intervention in green infant industries may be justified as a strategy to increase the provision of public goods. How should government policies be designed to promote such industries? One way to analyse this question is to compare government intervention in green infant industries in which it has been successful with green infant industries in which it has been less successful. The Danish government has intervened intensively in the wind turbine industry and organic farming sector mainly for environmental reasons since 1992 and 1987 respectively, but with very different impacts. While the electricity market share of wind energy reached 20% in 2007, organic food consumption lags behind with a food market share of approximately 8.5% in 2007. This paper compares the packages of policy instruments applied in the two industrial sectors and assesses whether differences in instrument choice may explain the significant differences in market shares. It is demonstrated that government intervention in the wind turbine industry has emphasised the use of policy instruments designed to increase demand for wind energy, whereas organic farming policy has put more emphasis on instruments motivating farmers to increase supply. This may be an important factor explaining variance in growth. Finally, the paper analyses whether the lessons from government policy aimed at promoting the wind turbine industry can be transferred to organic farming policy.

KW - policy instruments

KW - policy impact

KW - public goods

KW - wind energy

KW - organic farming

KW - infant industries

U2 - 10.1007/s10668-010-9262-8

DO - 10.1007/s10668-010-9262-8

M3 - Journal article

VL - 13

SP - 293

EP - 307

JO - Environment, Development and Sustainability

JF - Environment, Development and Sustainability

SN - 1387-585X

IS - 2

ER -