Can Market Forces Really be Employed to Address Climate Change?
An Economic View of the Environment
May 26, 2012
Commentary by: Robert N. Stavins, a member of the Belfer Center Board of Directors and director of the Harvard Environmental Economics Program
Topic: Climate change
“Debate continues in the United States, Europe, and throughout the world about whether the forces of the marketplace can be harnessed in the interest of environmental protection, in particular, to address the threat of global climate change. In an essay that appears in the Spring 2012 issue of Daedalus, the journal of the American Academy of Arts and Sciences, my colleague, Joseph Aldy, and I take on this question. In the article – “Using the Market to Address Climate Change: Insights from Theory & Experience” – we investigate the technical, economic, and political feasibility of market-based climate policies, and examine alternative designs of carbon taxes, cap-and-trade, and clean energy standards.”