Bringing together insights from contemporary development, management and behavioural sciences, the book develops a new planetary economics. As carbon becomes an increasingly limited and valuable global resource, it can also serve as an anchor point for adjusting global financial imbalances. This book shows that low carbon economies can have a long-run competitive advantage because of their higher efficiency and reduced exposure to oil instability. The key to making this transition lies in the integrated use of innovation policy, carbon pricing and consumer empowerment.