CoreEcon » Blog Archive » Garnaut on Innovation - The Diigo Meta page

• 06 Jul 08
  

  Suhit Anantula

  garnaut Innovation

  • My conclusion on that chapter: it marks a watershed in proper thinking about why an Australian government should support innovation and, not surprisingly, as a result as for a big hunk of support. However, I am less enamored by the focus on matching grants. There is potential for so much more when it comes to the environment.
  • What is interesting is that Garnaut calls for this magnitude of spending while ruling out “wrong arguments” for greater spending on innovation. These include that need for speed (ruled out because, if the emissions cap is binding, that is what emissions will be; end of story), low permit prices (ruled out because the setting of future targets will mean that prices will rise and innovation is all about the future), and that innovation will soften the blow from the carbon cap (ruled out because this blow is the point of the whole exercise

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