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Innovation and Climate Policy

  • David Popp

    ()

    (Department of Public Administration and Center for Policy Research, The Maxwell School, Syracuse University, Syracuse, New York 13244-1020
    National Bureau of Economic Research, Cambridge, Massachusetts 02138)

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    Reducing emissions of the greenhouse gases that cause climate change will require dramatic changes in the way that energy is produced and consumed. The cost of technological changes such as alternative energy sources and improved energy efficiency will play a large role in determining the overall cost of combating climate change. Government policy will heavily influence the development of such technologies. Both environmental and R&D policies provide incentives encouraging the development of clean technologies. Understanding the incentives provided by these policies, and their influence on the development of new technologies, is important for understanding the ultimate effects of climate policy. This article reviews the literature on environmental innovation and diffusion, with a focus on studies relevant to the development of clean energy technologies necessary to address climate change. I discuss the implications of this literature for the development of climate policy.

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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev.resource.012809.103929
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    Article provided by Annual Reviews in its journal Annual Review of Resource Economics.

    Volume (Year): 2 (2010)
    Issue (Month): 1 (October)
    Pages: 275-298

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    Handle: RePEc:anr:reseco:v:2:y:2010:p:275-298
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