Measuring the cost benefit of innovation investment
Politicians love the idea that the innovation fairy will bring down the cost of low-carbon energy, thus making climate change a lot less painful. But wand-waving innovation investment programmes also have a cost, which may divert resources from other options for reducing emissions.
Testing the cost-effectiveness of initiatives such as the new “Mission Innovation” is therefore vital. Our work on its forerunner suggests the new programme is good value at planned levels, and that higher levels of investment in this area may indeed be justified.