By Charles Weiss
The US is hooked on fossil fuels, and the environmental and geopolitical expenses are mounting. A federal programвЂ”on the dimensions of the ny undertaking or the Apollo ProgramвЂ”to stimulate innovation in power coverage turns out crucial. In Structuring an strength expertise Revolution, Charles Weiss and William Bonvillian make the case for simply this kind of application. Their thought backs measures to stimulate deepest funding in new expertise, together with a cap-and-trade approach or carbon tax, yet augments those with a remodeled strength innovation process. it will inspire a extensive diversity of thoughts that may provide policymakers a number of technological thoughts over the lengthy implementation interval and on the large scale required. utilizing new organizational positive factors, this system could transcend conventional study and improvement efforts to advertise prototyping, demonstration, and deployment of technological techniques swifter than should be comprehensive by way of industry forces by myself. Weiss and Bonvillian suggest a brand new built-in coverage framework for advancing strength know-how and description a four-step strategy for encouraging strength options: overview of the way new know-how can be introduced, targeting stumbling blocks that could be encountered available to buy; improvement of technology-neutral guidelines and incentives, placing new know-how pathways into perform to bridge the conventional ''valley of death'' among study and late-stage improvement; id of gaps within the latest approach of institutional help for power innovation; and the institution of personal and public interventions to fill those gaps. This procedure goals for a degree enjoying box in order that applied sciences can compete with each other on their benefits. robust management and public aid may be had to face up to the strain of entrenched pursuits opposed to placing new expertise pathways into perform. This publication may also help commence the method.
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Extra info for Structuring an Energy Technology Revolution
In the examples above, the government, and usually the military establishment, played a prominent role in shepherding these technologies through the entire innovation process. The second of these concepts is the so-called induced innovation theory of the late Vernon Ruttan, in which technology and technological innovation respond to the economic environment. 6 By extension, the model would predict that technology and technological innovation would also respond to the policy environment, for example by improving worker and product safety and decreasing pollution as policies in these areas are tightened.
The aggregate level of such investments will be less than what is needed (in the jargon, will fall short of the social optimum) in the absence of public money. Private investments in induced technological change—beyond, say, the relatively simple retrofits and adaptations and investments in well-tested technology discussed in the preceding paragraph— are unlikely by themselves to take place fast enough or in sufficient quantity to meet the need, even if the recent rise in An Innovation Policy Model for Energy Technology 31 energy prices proves permanent.
For other technologies, such as those for household energy conservation, moreover, consumers tend to insist on such short payback periods that back-end incentives are essential to their adoption.