Designing a friendly space for technological change to slow global warming
AbstractWhat is the best strategy to encourage research and development on new energy technologies in a market economy? What steps can ensure a rapid and efficient transition to an economy that has much lower net carbon emissions? This paper shows that, under limited conditions, a necessary and sufficient condition for an appropriate innovational environment is a universal, credible, and durable price on carbon emissions. Such a price would balance the marginal damages from carbon emissions against the marginal costs of abating emissions; it should not contain a correction factor for inducing technological change. This result, which the paper calls "price fundamentalism," applies principally to the market-oriented part of research and innovation. It is subject to qualifications regarding the efficacy of intellectual property protection and the proper level of carbon prices, and it applies primarily to market sectors. The role of appropriate prices on emissions is a central part of public policies to encourage technologies to combat global warming.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Economics.
Volume (Year): 33 (2011)
Issue (Month): 4 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/eneco
Technological change Global warming Innovation;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kira R. Fabrizio, 2007. "University patenting and the pace of industrial innovation," Industrial and Corporate Change, Oxford University Press, vol. 16(4), pages 505-534, August.
- Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297.
- Stanley M. Besen & Leo J. Raskind, 1991. "An Introduction to the Law and Economics of Intellectual Property," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 3-27, Winter.
- Nemet, Gregory F., 2012. "Inter-technology knowledge spillovers for energy technologies," Energy Economics, Elsevier, vol. 34(5), pages 1259-1270.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.