Stiglitz emphasizes the importance of innovation in the energy sector.

South Africa has the capacity to put itself at the forefront of emerging countries when it comes to adapting to climate change, but the country will need leadership and buy-in from the business sector.

As a fast developing country with high carbon emissions, South Africa will soon need to begin making the switch to a low carbon economy. Stiglitz said the government would have an important role to play in this and warned that a lack of clear policy could see the country lagging behind its contemporaries, as the US is now lagging behind China when it comes to green technology.

Stiglitz said that a set of broad macroeconomic policies, with the government making decisions in a way that supports green economics, may be necessary. He said that some of the most successful industries in the US -- including the advent of internet -- have been supported by the government.

 "People sometimes forget that innovations are part of important government policy" he said.
Read more of this Mail & Guardian article here.

Is economics the driver for innovation?

“Industry’s goal is not to deploy the most innovative or the greenest technology. The goal is to make money” says MIT alumnus and DoE under secretary for science, Steven E. Koonin.

As someone with a long academic background he postulated the issue in the form of a simple syllogism:

• Almost the entire energy industry, with only a few exceptions, is in the hands of private industry;
• Industry’s primary goal is a legal and predictable profit;
• Therefore, innovation in the energy supply will only reach a significant scale when it is profitable or mandated.

Read the rest of the MIT news article here and let us know what you think.