E3G has been referenced in an Economist article, supporting the argument that a higher carbon price or tax might not be enough to drive the necessary innovation needed for cleaner technologies.
Entitled ‘Winds of Change’, the piece discusses the new energy bill (which has been designed to revolutionise Britain’s electricity market) and the transformation required to achieve the increase of renewable electricity in the market.
A more rational way to encourage investment in low-polluting electricity generation would be to levy a tax on polluters. The EU does so, in effect, through its Emissions Trading System, the world’s biggest carbon market. Yet, due to a combination of mismanagement and economic recession, the carbon price on the ETS has been too low to push polluters into cleaner technologies. And even a higher carbon price, or tax, might not drive the necessary innovation, according to new research from E3G, a consultancy.
This article appears in the print edition and is also available to read on the Economist website.