Providing critical insights that will interest readers ranging from economists to environmentalists, policymakers, and politicians, this book analyzes the economics and technology trends involved in the dilemma of decarbonization and addresses why aggressive policy is required in a capitalist political economy to create a sea change away from fossil fuels.

• Presents comprehensive and understandable reviews of more than 200 recent empirical studies of market imperfections in the energy efficiency and climate change literature, providing a basis for targeting policies at the most important causes of poor market performance

• Argues that aggressive action to induce change and overcome resistance, using targeted policies rather than broad-based taxes, is the strategy that will create movement towards a decarbonized economy and world

• Provides a logical decision-making framework and portfolio analysis that enables policymakers and regulators to choose, explain, and defend their decisions, objectively and transparently