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A gradual approach also makes it cheaper to exchange dirty technologies with cleaner ones.
The perceived expense of substituting away from dirty technologies is one huge obstacle to emission reduction plans in America and elsewhere.
From Athens to Beijing, the impact of fine particles released by the combustion of fossil fuels, and especially coal, is among today's biggest public-health concerns.Dethroning King CoalThe dream of cleaner energy will never be realised as long as the balance is tilted toward dirty technologies.
For one thing, clean energy is not the only sort of "alternative" energy that is enjoying a boom: dirty technologies like Canada's mucky tar sands (from which petrol can be made at great environmental expense) are also benefiting from high oil prices.
Panellist and thought leader Christian Sarkar pointed RosieHelson towards this piece by his colleague Stuart L Hart, which points out that while China is locked into old, damaging western technologies and growth patterns, India has the chance to take a "green leap", bypassing dirty technologies in favour of new clean ones.
"Under this system, the dirty technologies finance the clean," says Aldy. Aldy acknowledges that the approach has two weaknesses.
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If the choice we have is to continue with old, dirty technology or invest in the energy technology of the future, I, for one, favor the future.
This firm has the opportunity to switch from a high-carbon "dirty" technology to a low-carbon "clean" technology.
A transformative technology that is reliable, convenient and cheaper than fossil fuels would out-compete this dirty technology in the marketplace.
He is asking for government intervention on carbon emissions not just to help the planet, but also because he believes it will create opportunities that his company may be better placed to exploit than rivals stuck with older, dirtier technologies.
In addition, it has also been claimed that support for renewable electricity deployment negatively interacts with the EU ETS, having a dampening effect on the CO2 price, which favours the dirtiest technologies and is detrimental for the greener ones.
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