Joshua Farley, Market and Non-market Solutions to Ecological Crises, The Solutions Journal, Volume 8, Issue 1, January 2017, Pages 1-2 (https://www.thesolutionsjournal.com/article/market-non-market-solutions-ecological-crises/) Abstract: Ecological crises ranging from climate change to biodiversity loss arise when self-interest outweighs the common good; for example, people aware of the catastrophic social costs of carbon emissions drive anyway because it is personally convenient. Markets, in theory, channel self-interested, competitive behavior towards the common good, leading an increasing number of economists and environmentalists to argue that market mechanisms offer the most efficient solutions to environmental problems.1 People respond to higher prices—a tax on carbon—by using less. Industry responds to profit incentives—monopoly property rights to patented information—with environmentally-friendly innovations. These market mechanisms are certainly better than ignoring the costs of ecological degradation or investing nothing in green technology, but they remain highly inefficient. Demand for essential resources, such as food and energy, is only responsive to price when expenditures account for a … Topics: Climate Change; Economy; Environment