{"id":86713,"date":"2026-06-10T15:35:38","date_gmt":"2026-06-10T14:35:38","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=publication&#038;p=86713"},"modified":"2026-06-10T15:35:39","modified_gmt":"2026-06-10T14:35:39","slug":"green-economic-planning-as-directed-entanglement","status":"publish","type":"publication","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/publication\/green-economic-planning-as-directed-entanglement\/","title":{"rendered":"Green economic planning as \u2018directed entanglement\u2019"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p class=\"wp-block-paragraph\">The impacts of climate change are being felt across the world, highlighting the urgency of a dramatic reduction in greenhouse gas emissions. There is a growing consensus that this green transition will only be achieved if it is led by active and ambitious states.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In this paper, the authors propose green economic planning as a framework for states to set ambitious climate plans. They explore green economic planning across democratic and authoritarian contexts, featuring comparison of three national case studies: France&rsquo;s post-war, whole economy, non-green planning; Denmark&rsquo;s green sector planning from the 1980s; and China&rsquo;s whole economy, green planning from the 1980s.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Offering a blueprint for green economic planning under capitalism, the authors show that it is feasible and versatile. They argue that green planning requires a balance between decentralisation and central coordination, and between the autonomy of planning agencies, market discipline and political legitimacy. The authors call this balance &lsquo;directed entanglement&rsquo;, a term which captures the state&rsquo;s ability to generate investment, discipline capital and collaborate effectively with market actors.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Key insights for decision-makers<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Public ownership has played a vital role in decarbonisation<\/strong>: in France, Denmark and China state-controlled firms have been the backbone of green planning actions. Today, large swathes of state-owned energy, finance and mining assets can attract and discipline private sector participation in green planning, creating significant opportunity costs for private actors who resist moves to the green transition.<\/li>\n\n\n\n<li><strong>State-owned enterprises in strategic industries play a key role in supporting both the demand and supply sides<\/strong>. This is seen in the nuclear industry in France, wind in Denmark and renewable energy sector in China. Without such leverage, states lack the infrastructural power to enforce sectoral shifts, leaving decarbonisation vulnerable to obstruction by emission-intensive industries and their companies.<\/li>\n\n\n\n<li><strong>While hybrid public-private models can accelerate initial transitions, long-term sustainability demands deeper coordination from the state<\/strong>. Private financial institutions, driven by short-term returns, cannot autonomously redirect capital from high-carbon to low-carbon sectors at scale. Only the state &ndash; through public banking, credit guidance and green monetary policy &ndash; can enforce the reallocation of resources at the scale necessary to achieve the green transition.<\/li>\n\n\n\n<li><strong>New green planning infrastructures must actively reshape markets through centralised decision-making and enforcing coherence<\/strong> <strong>across climate, fiscal, monetary and industrial policies<\/strong>. However, such new institutions must be accompanied by governance mechanisms that allow for dynamic adjustments tailored to changing circumstances.<\/li>\n\n\n\n<li><strong>States should set the direction for private companies and state-owned entities alike<\/strong>, ensuring that the business incentives of the private sector align with the opportunities and constraints set up by the planning system and backed by the state&rsquo;s own resources.<\/li>\n<\/ul>\n\n","protected":false},"excerpt":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<?xml encoding=\"UTF-8\"><p>In this paper, the authors propose green economic planning as a framework for states to set ambitious climate plans.<\/p>\n\n","protected":false},"author":79,"featured_media":86718,"template":"","tags":[1161,4902,388,4925,5144,5253],"publication-type":[435],"topic_area":[4694,4710],"class_list":["post-86713","publication","type-publication","status-publish","has-post-thumbnail","hentry","tag-economic-models","tag-economic-policy","tag-green-economy","tag-green-transition","tag-state-owned-enterprise","tag-states-markets-decarbonization-nexus","publication-type-working-papers","topic_area-policy-evaluation","topic_area-public-finance"],"acf":{"exclude_from_sync":{"ref_value":"field_560538b0e7350","value":"0","type":false,"post_type":""},"show_translations_widget":{"ref_value":"field_6203d588c41e8","value":"0","type":false,"post_type":""},"rss_newsletter":{"ref_value":"field_54f5c2c1544d8","value":"","type":false,"post_type":""},"downloads":{"ref_value":"field_52f16cc1a80f2","value":["https:\/\/www.lse.ac.uk\/granthaminstitute\/wp-content\/uploads\/2026\/06\/GRI-working-paper-453-Ban-et-al.pdf"],"type":"download","post_type":""},"profile_link":{"ref_value":"field_52f164b5189e9","value":["cornel-ban","jacob-hasselbalch","mathias-larsen"],"type":"relationship","post_type":"profile"},"spotlight":{"ref_value":"field_52f80896506d3","value":"","type":false,"post_type":""}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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