Investing In Clean Energy: Time To Subsidize?
Two think tanks from opposite ends of the ideological spectrum came together today to issue a report recommending a $25 billion annual investment in clean energy. The AEI-Brookings report recommends several methods for investing the money (h/t David Leonhardt).
This joint paper by the Brookings Institution, the American Enterprise Institute, and the Breakthrough Institute argues that the federal government should invest roughly $25 billion per year in military procurement, R&D, and a new network of university-private sector innovation hubs to create an energy revolution. The program should be financed through several mechanisms, including a low price on carbon.
The idea is that since we have failed to put a price on dirty energy, perhaps we can combat climate change by subsidizing clean energy. This would have the added benefit of making it potentially cheaper for other developing countries to cut back their emissions by developing innovations that could be exported. However I am not sanguine about its political prospects given the current reluctance to spend money on anything. It appears that AEI is now to the left of the Republican caucus.Click here for reuse options!
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