The United States stands on the cusp of a clean technology revolution. The development of cleaner fuels and energy technologies is the key to tackling the twin challenges of fossil fuel dependence and global climate change. At the same time, it represents an enormous economic opportunity for our country. Clean technology could follow telecommunications and the Internet as the next great magnet for venture capital and entrepreneurial ingenuity -- especially if our political leaders seize the moment and dramatically modernize U.S. energy policy. The global race to low-carbon fuels and clean technology is on, and the pertinent question today is whether the United States will lead the way or follow. That's why, as the New York Times' Tom Friedman puts it, "Green is the new red, white and blue."

Yet America's progress is hampered by political paralysis in Washington. The energy debate often seems deadlocked between environmental activists who remain reflexively suspicious of market-oriented solutions, and conservatives who insist -- against mounting evidence -- that a clean environment is incompatible with economic growth. The Progressive Policy Institute takes a different approach. We believe that government cannot ordain a whole new energy system for America -- that is a massively complicated task that can only emerge from the push and pull of market forces. But government can create conditions and incentives that stimulate more rapid innovation in the energy sector. Clean energy innovation, in turn, can spur our economy's growth, create high-paying jobs and make America more competitive in global markets.