My sense is that governments now seem more prepared to spend public funds on clean energy technologies combined with perhaps “stealth” regulations that ramp up to these new clean energy technologies. Tougher fuel efficiency standards for cars that reach up to hybrids as the new auto standard; renewable energy portfolio standards imposed on utilities; perhaps carbon capture and storage technologies eventually as the next “best available technology” for coal-fired power plants. Additionally, although economic theory always advised that a strong enough carbon price would eventually stimulate clean energy technologies, low carbon prices and continued uncertainty re. C&T have been very slow in stimulating clean tech.

Call it the “technology/soft regulatory” approach (TSR for short). China might be the leading example of this approach. The TSR approach is a lot easier to get political acceptance for and to implement. It also tends to synchronize with energy development, future green tech marketing opportunities, job creation and perhaps to a future low-carbon economy (through technological transformation). Its overall effectiveness in delivering a given GHG reduction target is debatable, but it seems to be where much of the world is at!

Don Macdonald
MacEwan University
Alberta, Canada

check out: http://www.carbonfees.org/home/

Getting out of the carbon trading paradigm is key to actually cutting emissions over the long term.

I’ve written a number of critical pieces on cap and trade here:

http://greenthoughts.us/policy/