Interactions among technology policies and market failures

This area focused on how market based instruments for carbon dioxide may interact with other types of instruments such as technology based policies. It considered in particular policies that are motivated from market imperfections.

Examples of such imperfections are undervaluation of energy efficiency by consumers and industry, and spillovers of knowledge accumulation by producers. This research area fed in its results in research area A and benefited from outcomes of both area A and B.