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.
Institute for Innovation and Public Purpose (IIPP), Bartlett, UCL
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