He found, for example, that renewable energy technologies have made impressive progress over the past 25 years, and costs have been considerably reduced.
Continued innovation has the potential to decrease costs further as markets expand.
Anderson found, however, that the positive effects of innovation are commonly under-estimated or neglected in public policy. Investment in alternative low-polluting technologies is therefore lower than economically and environmentally desirable. Innovation-promoting policies could significantly improve environmental protection and at the same time lower environmental costs. There is a major role for public investment in the search for cleaner development.