Directed technology and the environment
The subject of the previous post was Daniel Susskind’s book Growth : A Reckoning . Its author outlined measures that he believed could enable continued economic growth that did far less harm to society and the environment than has previously been the case. An important factor in this kind of growth would be steering technological progress in desirable directions through measures such as economic incentives. Susskind treats this idea broadly, but a more detailed exploration is found in the paper Environmental Policies and directed technological change by Gugler, Szücs and Wiedenhofer (2024). The authors examine how different environmental policies “can steer innovation towards eco-friendly technologies”, and produce numerical estimates of their effectiveness. The policies evaluated are those “designed to address environmental market failures”. Economists have seen climate change as a type of free market failure: a failure to maximise society’s welfare, since greenhouse gas emissions ar...