19 Mar '12, 6pm

Does cap-and-trade produce technological innovation?

Does cap-and-trade produce technological innovation?

Cap-and-trade is dead, but some folks never tire of kicking the corpse. Corpse kickers received a boost last week from a paper published in the journal Proceedings of the National Academy of Sciences , which purported to show that cap-and-trade programs “do not provide sufficient incentives for energy technology innovation.” This strikes me as a classic example of a press release overhyping and oversimplifying a paper to get attention. Consequently, I bet a lot of people are going to misread it, and discussion of cap-and-trade, to the extent it still exists, will get even more caricatured and divorced from reality. Too bad — the paper is actually pretty interesting. It’s worth teasing out what it does and doesn’t show. Scientist Margaret Taylor of the Lawrence Berkeley National Laboratory analyzed two existing cap-and-trade programs: the national U.S. market for sulfur dio...

Full article: http://grist.org/climate-policy/does-cap-and-trade-produc...

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