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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.

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Exploring Failed Green Innovation Policy: The Rise and Fall of Ethanol Cars in Sweden 2003–2015

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  • 出版模式：

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  • 发表日期：

    2026年

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  • Rickard Björnemalm,
  • Christian Sandström

摘要

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.