Creative destruction economics, which has been popularized by the internet, offers the prospect of creative destruction to help finance new technologies, especially those that might be needed to reduce environmental pollution.
In a blog post, a team of MIT researchers explain how a creative destruction policy can be implemented.
“In order to reduce greenhouse gas emissions, it is necessary to use innovative technologies to reduce our environmental footprint,” the researchers write.
“The only way to do that is to reduce the value of the environmental footprint of those technologies.”
This could mean reducing a company’s greenhouse gas emission by 5 percent or even 10 percent, the researchers say.
“So, the key to creating sustainable, clean energy is to make sure the value to society is greater than the value that the technology creates,” they write.
In this case, that would be a policy that incentivizes companies to create new products that can be reused.
The researchers estimate that creative destruction could be used to create more than 100 new clean energy technologies each year, including electric vehicles, biofuels, and solar power.
That could create millions of jobs, and it would help the environment, which is one of the major reasons why so many countries have enacted policies to reduce their emissions.