Technological lock-in and the shaping of environmental policy

This chapter reasons on the optimal design of environmental policies when the target of policy makers is to avoid a socially harmful technology lock-in effect. This simplified technology adoption model study why environmental policies could be badly designed when there is a chance for lock-in to take place. Since governments cannot be able to perfectly discriminate among competing technologies, at least in the short run, the optimal choice available for them could be preferring policies, represented by a blending of command and control and incentive based instruments, able to delay the lock-in event.