The authors analyze whether technology inducement prizes could be a useful complement to standard research grants and contracts in developing climate change mitigation technologies. Findings indicate that there are important conceptual advantages to using inducement prizes in certain circumstances.
Link
http://econpapers.repec.org/scripts/redir.pl?u=http%3A%2F%2Fwww.rff.org%2Fdocuments%2FRFF-DP-05-33.pdf;h=repec:rff:dpaper:dp-05-33