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Capitalism is criticized as both the cause of, and the main barrier to, effective mitigation of climate change. Yet, from the earliest days of the international negotiations, states have agreed that technological innovation, believed to be a primary strength of capitalism, is crucial to prevention of a dangerous accumulation of atmospheric greenhouse gases. Nations prefer to rely on innovative technologies to reduce emissions than to use regulations to constrain markets and limit social choice. The contributors to this volume show that the strengths of the system that creates ever new consumer products and industrial processes actually prevent the generation of technological innovations that would most effectively mitigate climate change. Through comprehensive research of the US innovation system and how companies respond to its supporting institutions, they demonstrate that liberal capitalism's perceived strengths are also its weaknesses. They also show that current theories of technological innovation are incomplete and suggest the institutional changes needed to generate climate innovations.
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