A Green Entrepreneurial State?: Exploring the Pitfalls of Green Deals

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 bubbles—termed “green bubbles”—rather 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.

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.