Q5) What does Helm (2012) say about the role of economics in addressing the climate change?
Following the business-to-business carbon cost of products and services as an economic activity, thereby enabling governments to tax products with a high carbon cost and let consumer preferences for lower price lead to markets that sell goods with low carbon costs. -JJW
Current consumption levels are not sustainable and it is a necessity to find a cost-effective way to reduce emissions. MF
The solution to climate change must be found using economic principles, however relying purely on economic models is unreasonable because human nature is not rational. – JB
Q6) What are the points to consider for climate change policies, according to Helm (2012)?
• Who put the carbon into the atmosphere?
This matters since post-industrial nations are wealthy enough to avoid a weaker economy without polluting the environment. -JJW
It is important to note which nations historically had higher emissions as well as which countries are currently the largest contributors. It should also be noted which countries are benefiting from other countries which have high emissions (such as the UK). – JB
–AND? Who did? YN
• What would be fair?
Allowing developing nations to industrialise, i.e. continue polluting, while holding post-industrial nations to account on their contributions to carbon consumption. -JJW
Climate change policy with ethical grounding and judgement. The ethics have to be grounded in allocation, supply, demand and evaluated against actual behaviour, not ideal or expected behaviour. MF
• Who is responsible for creating all the carbon
consumption now?
Developing nations with large populations. -JJW
Growing nations with increasing individual incomes. MF
Industrializing countries. – JB
–’the answers [to the three questions] all turn out to be rather similar’ (p. 56)–are they?