Do you think market-based approaches could save the planet?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

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It seems likely that only market-based approaches can save the planet.

So far, the market is the most effective way that humans have devised for ensuring that innovation will occur.  Given that innovation is what is needed to save the planet, we need the market.  If we do things like imposing a carbon tax, companies will come to have an incentive to innovate in ways that allow them to use less carbon.  They will do so more effectively than if we simply tell them how much carbon they can emit or impose some other sort of regulatory scheme like that.

The best approach is to create incentives for firms to find ways to reduce their use of resources so that we can save the planet.

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