Climate change is present as ever and is one of the saddest tragedies of the commons. Green technologies are an essential tool in combating climate change. Recently, the U.S. has set strong incentives for more sustainable innovation and consumption through the Inflation Reduction Act (IRA). The European Union has established other mechanisms, such as the European Cap-and-Trade Scheme (ETS) and the Carbon Border Adjustment Mechanism. It might seem that the IRA gives subsidies, while Europe taxes. Can we expect business to move to the U.S.? This panel explores the economics and politics of sustainable innovation in Europe and the United States.

With Prof. Dr. Clemens Fuest, Dr. Simon Engelke, and Prof. Jennifer Hillman, moderated by Bhavya Jha