Global Warming and its Dangers

Abstract

Global warming is frequently viewed as a problem requiring government restrictions on market behavior in an attempt to reduce temperature increases. But, a superior solution very likely emphasizes the best response to whatever changes in temperature occur rather than attempts to prevent those changes. Even if government mandates were more effective at reducing temperatures than market incentives, market incentives are probably still more effective at reducing the harm of global warming by motivating a better response to a worse situation. Over the long run, reliance on the informed flexibility of the market place will do more than government controls to reduce greenhouse gases. Markets do a far better job at promoting and utilizing technological advances that are our best hope for reducing dependence on fossil fuels, as well as creating the wealth that increases both our demand and our ability to address a wide range of environmental problems, including global warming.

The problem with the market is not that it is inferior to government at dealing with global warming; it is that it would deal quite effectively with the problem without requiring large government funding of organized groups or concentrating power in the hands of a few experts.