This open access book offers a critical examination of large-scale, state-led green industrial policies, with a particular focus on the European Union. Drawing on empirical evidence from sectors such as ethanol, hydrogen, wind power, and biogas, it reveals how well-intentioned Green Deals often result in speculative investment bubblestermed green bubblesrather than sustainable industrial transformation. Contributors analyze the systemic risks of mission-oriented policies that prioritize political goals over technological neutrality and economic viability. The volume highlights the consequences of overinvestment, technological lock-in, and politicized capitalism, while proposing more evidence-based, innovation-driven alternatives. It is an essential resource for scholars, policymakers, and practitioners seeking to understand and improve the design of green industrial strategies.

This book is open access, which means that you have free and unlimited access Systematically critiques the convergence of industrial and environmental policy Empirically examines the mechanisms behind failed green initiatives Points out alternative paths to accomplish economic and environmental development

Autorentext

Magnus Henrekson is Professor of Economics and Senior Research Fellow at the Research Institute of Industrial Economics (IFN) in Stockholm, Sweden. He served as CEO of IFN for 15 years until 2020. Prior to that, he held the Jacob Wallenberg Research Chair in the Department of Economics at the Stockholm School of Economics. His research focuses on entrepreneurship economics and the institutional determinants of the business climate.

Christian Sandström is Associate Professor at Linnaeus University, Sweden, and an editorial writer for Affärsvärlden. His research explores innovation policy and the interplay between technological and institutional change.

Mikael Stenkula is Associate Professor of Economics and holds a PhD from the School of Economics and Management at Lund University, Sweden. He joined the Research Institute of Industrial Economics (IFN) in 2005. His primary research area is entrepreneurship economics.

Inhalt

Part I: Introductory Essay.- The Pitfalls of Green Deals: Introduction and Synthesis.- Part II: Theoretical Perspectives Green Deals around the World.- The Incoherence of Modest Industrial Policy.- Raiders of the Entrepreneurial State: A Baptist and Bootlegger Analysis.- Behavioral Political Economy and Environmental Policy: Explaining Persistent Deviations from Efficient Policies.- Part III Empirical Evidence.- Exploring Failed Green Innovation Policy: The Rise and Fall of Ethanol Cars in Sweden 20032015.- The German Energiewende: A Green Deal Template or Planned Failure?.- In Pursuit of the Green TransitionElectricity at Any Cost?.- Green Industrial Megaprojects: A Welfare Economics Perspective.- HYBRIT: A Hubristic Hydrogen-Based Steel Project.- Explaining Northvolt's Bankruptcy and the Dilemma of Green Deals.- The Planetary Diet: An Illusory Recipe.- Italy's Superbonus and the Capture of Climate Policy by Modern Monetary Theory.- Part IV: Alternative Paths.- A Silent Transition: Growth with Less Environmental Weight.- uclear Technology Transition towards SMR and Generation-IV.- State-ification of the Entrepreneuror Entrepreneurialization of the State? How Singapore Challenges both Mazzucato and Her Critics.