Innovative carbon regulation: a catalyst for the green transition
A successful carbon strategy must garner majority support while ensuring that minority interests are not marginalized.
With carbon pricing initiatives faltering, many consumers remain reluctant to invest in expensive green products, despite the abundance and renewability of wind and solar energy. Even with adequate financing, the initial costs of renewable energy and green products struggle to compete with the well-established infrastructure of hydrocarbon-based products.
This reluctance among consumers hampers market confidence, inhibiting the virtuous cycle needed to lower prices, increase sales, and ultimately scale renewable energy to the point where it can outcompete fossil fuels.
While alternative regulations appear challenging, there may still be a viable path forward.