Enormous environmental challenges call for environmentally sustainable forms of economic development. In this chapter we discuss the urgency of green structural transformation in developing countries and the role that industrial hubs can play in this process. We first itemize the different grounds for ‘greening’ industrial structures, then review the most practical green industrial policies, and conclude by appraising three green hubs: eco-cities, green clusters, and eco-industrial parks. Altogether our chapter brings to the fore that there is considerable leeway for developing countries to seek spatial and non-spatial green policies to reduce their ecological footprint whilst increasing competitiveness simultaneously. There are indeed distinct cost advantages in incorporating green incentives and technologies in new cities, clusters, and parks, rather than retrofitting them ex post.
Energy and environmental challenges for developed and developing countries
