The United States–China Race for Green Transformation: Institutions, Incentives, and Green Industrial Policies

This article provides political analysis of the extent to which new state strategies of involvement in climate technologies have shaped the green markets in both China and the United States. Using rational choice institutionalism and comparative case studies, this article analyzes state involvement in novel governance techniques and green industrial policy competition related to climate technologies in the United States and China. The guiding research question asks to what extent green industrial policy and its related incentives are useful for understanding the transition to green energy in the two countries. This study further explores the ways in which both countries enhance the competitiveness of national industries for science and technology in alternative energy. The rivalry between China and the US has accelerated, to some extent, the process of strengthening regulatory intervention in knowledge creation, public financing for climate technologies, and other domestic economic interests, while the emergence of green industrial policy has become part of the win‒win rhetoric and practices to facilitate a green economy. This research contributes to the comparative understanding of the proliferation of mission-oriented innovation initiatives, as well as the challenges in reorganizing them with new green industrial policy concepts.