Full Title: Shifting Gears: Transcending Conventional Economic Doctrines to Develop Better Electric Vehicle Batteries
Author(s): Clifton Yin, Matthew Stepp
Publisher(s): Information Technology & Innovation Foundation
Publication Date: October 1, 2012
Full Text: Download Resource
Description (excerpt):
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Like all economic policy debates in the United States, energy and climate policy is shaped by competing “economic doctrines.” Those who subscribe to the neoclassical economic doctrine see climate change as a relatively straightforward problem caused by failing to charge polluters of greenhouse gases (GHG) for the full costs of their emissions. Once the price is right, the theory holds, the market will respond appropriately (if it hasn’t already) and develop the needed solutions. By contrast, those informed by neo-Keynesian perspectives favor a more direct response, such as subsidizing renewable energy or requiring its use. Finally, those supporting the innovation economics doctrine argue that price signals, regulation and subsidies are insufficient to drive clean energy transformation. Instead, innovation policies, such as investments in research and the development and commercialization of next-generation alternatives, are the best solution. Like all economic policy debates in the United States, energy and climate policy is shaped by competing “economic doctrines.” Those who subscribe to the neoclassical economic doctrine see climate change as a relatively straightforward problem caused by failing to charge polluters of greenhouse gases (GHG) for the full costs of their emissions. Once the price is right, the theory holds, the market will respond appropriately (if it hasn’t already) and develop the needed solutions. By contrast, those informed by neo-Keynesian perspectives favor a more direct response, such as subsidizing renewable energy or requiring its use. Finally, those supporting the innovation economics doctrine argue that price signals, regulation and subsidies are insufficient to drive clean energy transformation. Instead, innovation policies, such as investments in research and the development and commercialization of next-generation alternatives, are the best solution.