Politics and Policy Mixes: The Australian Capital Territory experiment in innovation co-benefits

Abstract

Sub-national governments are important actors in mitigating climate change, but often face political constraints. We investigate ability of policy mixes to overcome political constraints while supporting localization of economic benefits and accelerating technological innovation. Examining the case of the Australian Capital Territory (ACT), our findings show that localization of economic benefits policy can successfully overcome political barriers supporting innovation in renewable energy technologies. We discuss the ACT's policy mix as a source of learning for other sub-national governments attempting to balance political and fiscal concerns in supporting renewable energy innovation.