Policies to promote low-carbon technological development

Speaker: Hector Pollitt, Head of Modelling at Cambridge Econometrics

The challenge to decarbonise the global economy is primarily one of technology development and diffusion. Policies that are popular with economists, such as carbon taxes, will not be effective at reducing emissions levels if consumers do not see affordable alternatives to fossil fuels. Furthermore, without new technology options, these policies are likely to cause social unrest. The solar revolution has given us conclusive proof that policy can influence both the direction and speed of technological development. This finding has important implications for policy makers and suggests that a much broader portfolio of measures is needed than basic carbon pricing measures. 

However, successful innovation policy requires an understanding of the innovation chain, right through from basic laboratory research to final commercialisation of products. Accelerating this process requires interventions at each point in the innovation chain. This seminar discusses the role of innovation policy in combating climate change. It will discuss the role of research in the private and public sectors, and the interaction of incentives to innovate with other climate policies.

Please contact the seminar organisers Philip Arestis (pa267@cam.ac.uk) and Michael Kitson (m.kitson@jbs.cam.ac.uk) in the event of a query.

The seminar series is supported by the Cambridge Journal of Economics and the Economics and Policy Group at the Cambridge Judge Business School.