Literature/202311111406 policies for a net zero future

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Policies have a very large impact on the economic incentives for people (and corporations) to choose different technologies and behaviors. The book cites an example from London in 1952, when fog invaded the city to the point where it was impossible to see more than few meters away.

Changing policies regarding emissions forced automakers to lower the amount of particulate matter they were emitting, and in turn we got cleaner air in big cities.

But this is not the only thing states can do. Investing in technology research and development, and bridging the funding gap: Not all industries have the same incentives to invest in R&D, which means that gap needs to be funded by the state. Energy companies invest 0.3% in research, because the consumer does not care about how energy is produced. Plus, it is a very inelastic market, where there is no real choice.

The focus must be in three things: "Technology, Policies, and Markets". Sometimes policies induce market inefficiencies (for instance, making it hard to update a house to be all electric).


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Aquiles Carattino
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