Economic polices to increase low-carbon innovation
The UK Government has set a target to reduce carbon emissions by 80 per cent between 1990 and 2050. The scale of the challenge is such that it could never be met by the efforts of individuals and businesses to reduce their energy consumption.
Energy generation and transport would need to be almost wholly decarbonised and this would require massive technological innovation. Whilst economists can’t do the innovating, they can design policies to stimulate the necessary invention.