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It's Going to Be a Green Year

By Christopher Davis and Timothy Shuba
January 29, 2009

Clean energy is a top priority for the Obama administration and the new Congress. The President's campaign pledges and post-election comments posit clean energy as a key element for advancing the nation's economic recovery, fostering energy independence, addressing climate change, and reinvigorating American leadership in innovation and manufacturing.

Private-sector investment in renewable energy and other clean technologies is driven by federal and state policies providing economic incentives and imposing regulatory mandates. The substantial capital investments needed for the next stage of technology innovation and project development will require increased government intervention, especially as oil prices have (at least temporarily) slumped. Although the Obama administration may ultimately employ both carrots and sticks, it will likely favor incentives to create green jobs over regulatory mandates in the near-term to stimulate the economy.

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