• In this 110th Anniversary volume of the Journal of Economic Policy, we have favoured two keys to interpretation. The first is that of the international externalities and thematic interconnections intrinsic to the problem of climate change and the policies related to its management. The second is that of innovation and the industrial strategies implemented, at the national, sectoral and microeconomic levels, with the reflections on productivity, economic performance and competitiveness also assessed from an ecological perspective.
• The first section of the volume contains four essays devoted to the international dimension of environmental sustainability and its links to other aspects of regional and global governance.
• The second part of the volume contains four essays on the relationships between ecological regulation, sectoral and corporate strategies, and innovative activities, with reflections on industry's environmental impacts, patent performance, and economic performance.

• In this essay we examine the similarities and differences between two global problems, the Coronavirus pandemic and climate change.
• We show that both problems share the same microeconomic underpinnings, involving an oversupply of a global public evil. Moreover, they involve externalities whose correction entails very high economic and social costs.
• We use an established problem such as climate change, which has been studied for several years now, to highlight common features with the Covid-19 pandemic, but also important differences.

JEL Classification: D01, D60, I10, Q50.

Keywords: adaptation, climate change, Coronavirus, Covid-19, global public goods, mitigation, technological innovation.

• In the absence of timely, credible and internationally coordinated policies, there is a risk of a disorderly transition that could jeopardise macroeconomic and financial stability. In recent years, the debate has also started to involve central banks and supervisory authorities.
• The article outlines the debate on the potential macro-financial risks of the green transition, with a focus on the risks associated with a disorderly transition, and discusses the role that central banks and supervisory authorities can play in assisting the transition to a sustainable economy and in combating climate change.

JEL Classification: Q54, Q43, E58, G28.

Keywords: climate change, transition risk, financial stability, stranded assets, energy.

• The entry into force of the Paris Agreement on 4 November 2016 signalled a radical step change for signatory countries in the design of policies to curb and reduce greenhouse gas emissions responsible for climate change.
• The European Union (EU), in view of the upcoming 2023 deadline for the submission of a new climate mitigation strategy, approved on 11 December 2019 the sustainable energy transition plan known as the European Green Deal, with the ultimate goal of reaching 2050 with a complete decarbonisation of the European economy.
• The EU's emission mitigation plan, although very ambitious, remains a one-sided package of measures, reducing greenhouse gases on a global scale by only 3.4%.
• The multiple economic and trade links, which on a global level are represented by the close integration of different countries' production processes into global value chains, prevent unilateral EU action from becoming effective in reducing global emissions: carbon leakage reduces the impact of EU policy by almost a third.

JEL Classification: C68, F18, Q54.

Keywords: climate change, global value chains, international trade, mitigation policy, European Union.

• This work, using data on patents filed at the European Patent Office (EPO) by applicants residing in the main European countries, describes the technology specialisation profiles of the states in the field of inventions related to so-called green patents. The results for the period 2000-2018 show that patenting activity, and thus innovative activity, has responded to the challenges posed by the energy policies of the European Union and member states: since the early 2000s, a generalised growth of patents related to the reduction of greenhouse gas emissions in the energy sector can be observed. Italy is no exception: compared to other countries, however, it also shows a high degree of specialisation in transport-related inventions. These signs indicate that Italy, despite being a 'moderate' innovator at the European level, is facing the challenge of the green transition having accumulated knowledge in the area of renewable energy sources and, to a greater extent than other EU countries, in that of transport. To fully exploit this advantage, however, an acceleration in overall innovative activity and a strengthening of Italy's position in the main industrial sectors of green transition and sustainable mobility are required.

JEL Classification: O31, Q40, Q50.

Keywords: innovation, patents, green transition, climate change.

• This paper proposes an analysis of the relationship between environmental regulation, ICT capital and productivity growth for 18 OECD countries over the period 1990-2015. The empirical results support the hypothesis that environmental policies, by providing firms with an incentive for technological innovation, also foster productivity gains, as suggested by Porter (1991) and Porter and van der Linde (1995). Both environmental policies that exploit market mechanisms and command and control policies exert a positive impact, albeit of varying intensity, on productivity growth in the countries examined, especially in those with higher ICT capital intensity.

JEL Classification: D24, Q50, Q55, O47, O31.

Keywords: environmental regulation, productivity, ICT capital, Porter hypothesis

• The spread of the propensity towards environmental sustainability within the Italian manufacturing system can be read in the context of the strategic profiles of companies, which can be identified through methodologies summarising information from extensive business databases developed by official statistics.
• The combination of the factors relating to dynamism, innovativeness and environmental sustainability identifiable at company level makes it possible to measure the different conditions under which environmental sustainability actions are developed, characterised firstly by the interaction with the degree of strategic dynamism of companies and, as a further strengthening factor, with their propensity to introduce innovative processes/products.
• The results of micro-econometric estimates indicate positive and increasing specific effects of the diffusion/intensity of environmental sustainability actions on business productivity.

JEL Classification: D22, L21, Q01, L25.

Keywords: environmental sustainability, company profiles, productivity.