A Good Dose of Regulation Solves All Problems
Julian Glover, The Guardian | February 24, 2009
Europe's carbon markets are collapsing and this is bad news for climate change. ++ Economics dictates that if the price of a good goes down, demand goes up; this happened with carbon permits, because "if [they] are cheap, and everyone has lots, the green incentive crashes into reverse." ++ The ridiculously low price of carbon caused by the global recession removes every incentive to buy "costly solar energy." ++ The lesson to learn is the same one as for the credit crunch: "markets can be a conduit, but not a substitute, for political will."
