Technology Commercialization and Environmental Regulation: Lessons from the U.S. Energy Sector

The development of new “green” technologies is a key component of strategies for the transition toward an environmentally sustainable industrial society. In some instances, private firms or NGOs have taken the lead in bringing greener technologies to market. However, more often, government must play a fundamental role in this process. Unlike some industrial sectors, in which government has historically had a minimal and only indirect role in the path of technological innovation, the energy sector has always been marked by strong governmental involvement. Current efforts to manage climate change join long-standing programs to manage the local and regional environmental impacts of energy production and consumption. Furthermore, energy production and consumption are tied to national security and economic well-being together, these concerns on the environment, development, and security make the energy sector a prime target for thinking about how to effectively use the forces of government to bring about technological innovation.