Regulation Theory and Analysis: Impact on Technological Change

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Generally speaking, it would be economically impossible without technology research, development, demonstration, deployment and diffusion (RDDD&D) and induced technology change (ITC), to stabilize GHG concentrations at a level that would prevent dangerous anthropogenic interference with the climate system. Government support is crucial at the development stage, but private investment will gradually replace the former for deployment (creating necessary market transformation) and for diffusion (successful market penetration).

There are various types of technologies that can play significant roles in mitigating climate change, including energy efficiency improvements throughout the energy system (especially at the end use side); solar, wind, nuclear fission and fusion and geothermal, biomass and clean fossil technologies, including carbon capture and storage; energy from waste; hydrogen production from non-fossil energy sources and fuel cells.  Some are in their infancy and require public RDDD&D support, while others are more mature and need only market incentives for their deployment and diffusion.