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 and such investment may be crucial in large-scale, widespread transition to a decarbonised global economy.
Institute for Innovation and Public Purpose
With Mariana Mazzucato as Director
Barker, Terry, Crawford-Brown, Douglas (eds.) (2015) Decarbonising the World’s Economy Imperial College Press.
Mazzucato, M. (2018), The Entrepreneurial State, Penguin Books ISBN 9780141986104.
Mercure, Jean-Francois, Florian Knobloch, Hector Pollitt, Leonidas Paroussos, S. Serban Scrieciu & Richard Lewney (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