Transport emissions play a large role in climate change. Unfortunately, measures to address this risk creating inequalities in access to mobility. This article proposes policy recommendations to reconcile these two problems.
What is the best strategy to encourage research and development on new energy technologies in a market economy? What steps can ensure a rapid and efficient transition to an economy that has much lower net carbon emissions? This paper shows that, under limited conditions, a necessary and sufficient condition for an appropriate innovational environment is a universal, credible, and durable price on carbon emissions.
