by Richard G. Newell
- The strategy proposed in this paper has two main parts to directly confront two market problems that affect technology innovation relevant to mitigating greenhouse gases: lack of private incentive to reduce GHGs by adopting low-GHG technologies, and underinvestment by industry in research and development (R&D). It is proposed to increase both the demand for and the supply of GHG-reducing innovations by (1) inducing innovation in industry through a stable, long-term price on GHGs, reinforced by permanent R&D tax credits, and (2) complementing this innovation through increased public support for targeted climate mitigation research.
Newell, R.G. (2008). "A U.S. Innovation Strategy for Climate Change Mitigation." The Hamilton Project at Brookings, Discussion Paper 2008-15, Dec 2008.