How Political Pressure Sank Sweden's Ethanol Car Plan
A new study of Sweden's failed ethanol fuel program reveals how special-interest lobbying—not technology merit—can undermine green innovation policy. The 12-year push for ethanol cars shows that well-intentioned climate policies risk propping up old industries rather than disrupting them, a warning for governments backing emerging clean technologies.
Originaltitel: Exploring Failed Green Innovation Policy: The Rise and Fall of Ethanol Cars in Sweden 2003–2015
<p>The literature on innovation policy has so far paid little attention to policy failure and the mechanisms leading to failure. We describe the Swedish bubble in ethanol cars 2003–2015 and explain why policy efforts failed. Ethanol was competitive in the political domain as the fuel was backed by the Center Party and the associated farmers’ lobby group, but lacked economic, technological, and environmental competitiveness. Our findings suggest that green innovation policies aimed at supporting new technologies against vested interests may instead end up extending established interests as policies are put in place under the influence of various stakeholders other than the common good.</p>