The role of markets and policies in delivering innovation for climate change mitigation

Abstract

This paper identifies market incentives and international and domestic policies that could technologically alter energy systems to achieve greenhouse gas stabilization targets while also meeting other societal goals. I consider the conceptual basis and empirical evidence on the effectiveness and efficiency of climate technology policies. The paper reviews the literature on trends and prospects for innovation in climate change mitigation and examines the evidence on induced innovation and the implications for t…