Good article on the carbon taxes vs. regulatory approaches to solving climate change. If I may…let me also weigh in on “the age ol’ pricing vs. standards debate” and argue why a strategy focused on innovation, competitiveness, & demand-side incentives might be more effective. https://twitter.com/SiegelScribe/status/1339934110429700101

1/ First, let me just say….much respect to the carbon pricing folks. They've done some great analysis to show why, if implemented correctly, a carbon price would work wonders. It most certainly would! And big-ups to the regulatory folks as well (I’m a huge fan!)

2/ But right now….an innovation, competitiveness, and demand-side incentives approach might have a better chance of achieving our goals in the near term.

3/ No doubt…carbon prices would work. But politically tho! Would a policy that has people grinding their teeth in anger everytime they fill up at the gas pump for the next 20 years be an effective strategy? I’m not totally convinced that it would.

4/ So maybe risking turning people against the cause isn’t the optimal strategy.

5/ And politically tho…no doubt…given a chance to argue against a tax of any kind…Republicans will pounce. If it’s ever going to pass, the carbon tax prob has to be brought to the table and argued for by the Republicans. But right now….I don’t think that’s likely.

6/ And perhaps we don’t even need it. The last 10-12 years have taught us that innovation and scale can drive down costs dramatically.

7/ If we keep that up, by the time we even got the carbon tax in place and raised the price high enough to make it work, the costs of these technologies will have already fallen to “game-over” levels. For sure….some of them prob already have.

8/ As for the regulatory standards approach, those policies will absolutely work wonders as well! And….as mentioned….I’m a big fan! But politically tho! No doubt….given a chance to argue against heavy handed regulations….Republicans will pounce.

9/ So given reality…right now…politically tho…maybe a strategy focusing heavily on innovation and int'l competitiveness in the messaging while more quietly sliding in tech support and demand-side incentives to achieve greater scale would be more effective in the near term.

10/ First….innovation! Many Republicans have started to warm to the innovation approach to solving the climate problem in recent years and have shown some support for boosting Federal investments in clean energy RD&D. Let’s seize on that!

11/ Second….international competitiveness! America has an unmatched competitive zeal and we want to win and win big! Especially in the race to dominate the industries of the future. And there’s no doubt….clean energy mfg is one of the most promising industries of the future.

12/ But China tho! They're currently eating our lunch in the race to dominate clean energy manufacturing! Right now…it's a blowout! There’s a great deal of anger towards China and America First is still an effective messaging strategy in the Repub party. Let’s seize on that!

13/ A few top-notch scholars ( @JasonBordoff, @vsiv, @ProfDavidHart, @colincunliff, @CarbonWrangler, & David Sandalow) have argued that America should launch a National Energy Innovation Mission & laid out an impressive roadmap for implementation. https://www.energypolicy.columbia.edu/energizingamerica

14/ A National Energy Innovation Mission would achieve both of these ends, and I believe, if effectively combined with a “lets beat China”/America First/international competitiveness/good paying American jobs messaging strategy, it could gain some traction.

15/ As for the demand-side incentives options, that may be a bit harder. But it won’t face as much political backlash from Republicans as carbon taxes or a heavy-handed regulation approach, and such policies could perhaps be more quietly supported and pushed through.

16/ For sure, regulations, and maybe even a carbon tax, should be part of our longer-term strategy and certainly part of the debate. But right now…politically tho… an innovation, international competitiveness, and demand-side incentives strategy might be our best bet.

17/ “Politics is the art of the possible, the attainable - the art of the next best.” Otto von Bismarck. The question is…..are we artists? Are we Van Gogh? Are we Martin Scorsese? Are we Kendrick Lamar?

18/ Let’s at least try and be and seize on what we can. Maybe...right now....that means crafting a policy agenda that’s hard to argue against….i.e. an agenda focusing on innovation, international competitiveness, & demand-side incentives!