Creative Self-Destruction and the Climate

In his 2006 landmark report on how we should respond to the climate crisis, Nicholas Stern characterised global warming as an ‘externality’, a damage to others due to market activity whose cost is not met by those who cause it.Indeed, Stern characterised climate change as ‘the largest ever market failure’. In other words, the problem of global warming arises because the market system is not working well enough, and if we could find a way to correct the fault then the problem would be solved.

Source: Creative Self-Destruction and the Climate

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