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Lessons for the US in Canada’s Solar Energy Failure: A Market-Driven Approach to Sustainable Tech Adoption
- Canada's attempt to mandate the adoption of solar in the '70s offer lessons for sustainable tech adoption - market forces drive innovation, as government mandates risk being undermined by an overreliance on government intervention.
- The Canadian government initiated several ambitious programs to promote solar energy, but these were plagued by administrative confusion and cost overruns that delayed feasibility studies and other factors.
- The Canadian solar industry eventually collapsed when government funding was cut.
- Governments worldwide are concerned about standardising cleaner technologies like EVs and have offered subsidies, however, these efforts risk being undermined by an overreliance on government intervention.
- The market should determine which technologies succeed; market-driven adoption ensures technologies respond to genuine consumer demand and economic viability.
- The government should focus on creating an environment that supports market-driven adoption instead of mandating it through policies that promote innovation and reduce barriers to entry.
- The role of the government in transitioning to sustainable technologies is investing in R&D, establishing and enforcing policies that reduce barriers to entry, including government subsidies, but avoid overregulation and mandates.
- Market forces drive innovation, even in the EV market that is already driving innovation in battery technology, charging infrastructure, and vehicle design.
- Investment in infrastructure development like EV charging stations can facilitate the adoption of sustainable technologies.
- Avoid over-legislating since this creates artificial demand and risks killing the movement.
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