“Innovations in information and communication technology starting in the 1960s have had a transformative impact on the world economy by creating a platform upon which myriad other technologies and products could be developed. Green technology has the potential to cut carbon emissions, sure, but we also need to transform the way in which energy is delivered, utilized, and monitored. This necessitates innovation and significant investment not only in power generation but also in the electricity grid, in the transport system, and in homes and factories. The United States is lagging behind other countries in these activities. To regain leadership, we need both more and smarter subsidies to research in green technologies and a carbon tax that naturally encourages the use of cleaner technologies and triggers more research to seek such technologies.”
— Daron Acemoglu’s case for economic growth as the cure for our debt and employment problems is compelling, particularly this recommendation. His mention of “leadership” in green technology is a bit misleading, though — investment won’t in itself give the US an edge against trade rivals like China or Germany, and the international process on climate change is so broken now that the US stands little chance of leading, even by example. But a renewed focus on infrastructure and making it more sustainable would be an unalloyed good.
(Source: blogs.hbr.org)
