Innovation, Clean Energy and Growth

It is becoming ever more apparent that the way out of the tension between growth and climate change is innovation.

These innovations will need to slow the emissions driving climate change and protect people from the damages already unfolding. Climate scientists have extensively studied the environmental consequences of global warming, but the greatest source of uncertainty lies in the decisions humans make in response.

Economists have much to bring to the table. We have a rich set of tools for designing policies to address externalities, stimulate innovation, and facilitate widespread adaptation. Our models help illuminate the aggregate and distributional effects of these policies, accounting for complex economic linkages such as trade and migration. As a field, we are just beginning to apply what we know to the greatest challenge we face globally – man-made climate change.

Research under the theme includes renewable energy, electrification, energy markets, clean technology, innovation, industrial policy, green supply chains, firm productivity, jobs, political economy of decarbonisation, climate and macroeconomics