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With the right incentives, however, path dependency can help because as fuel taxes prompt more clean innovation, the market for clean cars expands, thus making each future clean innovation more profitable.
FORBES: Dirty Little Habits: Cleaning Up The Auto Industry
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Meanwhile, a host of new regulatory initiatives and fanciful (perhaps farcical) beliefs about the market readiness of clean-energy technologies redirected capital away from where it would most productively be used to compliance and rent-seeking.
FORBES: Keynesian Stimulus: Costly, Unproven And Unfalsifiable
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Mr Huhne said the government would aim to encourage new entrants into the energy market, make clean energy more attractive to investors, develop reserve plants to ensure "the lights stay on" during periods of high demand, and limit the amount of carbon emissions from "dirty" power stations.
BBC: Huhne unveils 'seismic shift' in energy policy