A critical aspect of long-term economic policy is incentivising low-GHG and air-quality innovation and technological change. This can be done by fiscal policy, e.g. a carbon tax or an emissions-permit scheme, or through regulations improving energy-efficiency or reducing emissions of pollutants.
Historically, many innovations have come through government projects and direct support. Such investment may be crucial in large-scale, widespread transition to a decarbonised global economy.
“Modelling innovation and the macroeconomics of low-carbon transitions: theory, perspectives and practical use” – Mercure et al., 2019
Institute for Innovation and Public Purpose (IIPP), Bartlett, UCL
Barker, T., Crawford-Brown, D. (eds.) (2015) Decarbonising the World’s Economy: Assessing the Feasibility of Polices to Reduce Greenhouse Gas Emissions, Imperial College Press. Available on Google Books.
Mazzucato, M. (2013) The Entrepreneurial State, Penguin Books, ISBN:9780141986104.
Mercure, J., Knobloch, F., Pollitt, H., Paroussos, L., Scrieciu, S.S. and Lewney, R. (2019) Modelling innovation and the macroeconomics of low-carbon transitions: theory, perspectives and practical use, Climate Policy, 19:8, 1019-1037, DOI:10.1080/14693062.2019.1617665.