A better way than cap and trade

The United States has an opportunity to lead the world on research and development, which would give it the moral authority to demand that everyone else do the same. The world's sole superpower could finally provide the leadership on climate change that has been lacking in the White House.

Even if every nation spent 0.05 per cent of its gross domestic product on research and development of low-carbon energy, this would be only about one-tenth as costly as the Kyoto Protocol and would save dramatically more than any of Kyoto's likely successors.

In the United States, this approach would open up new avenues for the nation's creative, innovative spirit and leave behind the political mess of Kyoto-type negotiations.

A low-carbon energy, high-income future is possible. Unfortunately, the political battles we just witnessed in Washington have done nothing to make it a reality.