Björn Lomborg: Subsidising inefficient green industries is not the way to tackle climate change

President-elect Obama is now facing countless people who claim that subsidies for renewable energy and CO2 taxes are great ways to tackle global warming and forge a new green economy. Unfortunately, this is almost entirely incorrect. Taxes and subsidies are always expensive, and will likely impede growth. Moreover, if we really want to tackle global warming, we shouldn't spend vast sums of money buying inefficient green technology – we should invest directly in R&D to make future green technology competitive.

Obama should seize the initiative and make the meeting in Copenhagen next year not about bloated subsidies for inefficient technologies, but about lean investments in future breakthroughs. That is the way to tackle global warming and support a genuinely vibrant economy.