This paper provides a primer on the economics of environmental innovation. Our intention is not to write a pure review … both emissions and of emissions abatement. We then analyze theoretically how innovation may affect marginal abatement costs …. We also cover the different modelling choices with respect to how the innovation process is represented mathematically …

of low-carbon energy innovation. These include both improvements in physical capital, such as smart grids to aid … document recent trends in energy innovation and discuss the lessons learnt for policy. We then discuss the potential role for … complementary innovation in both physical capital--using smart grids as an example of how policy can help--and human capital, where …