Challenges with Solving the Climate Change Problem
The fundamental problem, I think, is that the globe is already above the CO2 concentration that is widely considered to allow for sustainability. This makes this problem very difficult to solve politically since it requires people to change just to get back on target. In economics terms, we have a surplus of CO2 and a shortage of carrying capacity. This is a very different problem than if we'd be starting with a surplus of carrying capacity.
Here's an analogy. Let's say you have a bakery and another bakery is going to open. Yet, there doesn't seem to be enough people around to support both bakeries. What to do? Contrast this with the situation where the same circumstances exist except one - there's demand for baked goods that's been going unmet. Ah, very different problem. Right now, the situation we're in with Co2 is closer to the former situation. Whose willing to make changes in order to share the carrying capacity? Where's the contraction going to occur? How much is going to occur?
A second problem, I think, is 'policing' an agreement. There must be some type of monitoring that can ensure agreements are being met. This apparently was a real sticking point with China with their tiresome claim that monitoring would be a violation of their sovereignty. Absent some type of verification that can reasonably expected to be successful, an agreement's value is certainly in question. Technology can be used to decrease the cost of policing. For example, cars have alarms and ways to disengage the starter. Car parts are now marked in various locations. Tracking tools are also available that can be purchased and placed on your car. People own garages. There are also various items like bars that can be attached to pedals and or the steering wheel to help thwart theft of your property. Or, in other words, expropriation of your property, that you won the right to. Apparently, oil spills can be traced to a particular ship using science.
A third problem, I think, is enforcing the agreement. This is somewhat different than policing, but it's related to that problem. For example, let's say you find someone stealing your car and you have a legal right to keep them from doing that. That's the policing problem. Now, you also need some reasonably inexpensive way to enforce your right to keep someone from expropriating your car. That's where the legal and information systems comes in. You take out you cell phone and dial 9-1-1 and report the theft. You get out your laptop and place a notice of craigslist. Police cars have electronics that aid in stolen vehicle identification. Ah, the police find your vehicle!
These three specific challenges combine to make common-pool resource problems difficult and potentially costly to solve. Of course, these three aspects of property rights enforcement arise in all markets. They're just significantly magnified when it comes to common-pool resources.
Here's an analogy. Let's say you have a bakery and another bakery is going to open. Yet, there doesn't seem to be enough people around to support both bakeries. What to do? Contrast this with the situation where the same circumstances exist except one - there's demand for baked goods that's been going unmet. Ah, very different problem. Right now, the situation we're in with Co2 is closer to the former situation. Whose willing to make changes in order to share the carrying capacity? Where's the contraction going to occur? How much is going to occur?
A second problem, I think, is 'policing' an agreement. There must be some type of monitoring that can ensure agreements are being met. This apparently was a real sticking point with China with their tiresome claim that monitoring would be a violation of their sovereignty. Absent some type of verification that can reasonably expected to be successful, an agreement's value is certainly in question. Technology can be used to decrease the cost of policing. For example, cars have alarms and ways to disengage the starter. Car parts are now marked in various locations. Tracking tools are also available that can be purchased and placed on your car. People own garages. There are also various items like bars that can be attached to pedals and or the steering wheel to help thwart theft of your property. Or, in other words, expropriation of your property, that you won the right to. Apparently, oil spills can be traced to a particular ship using science.
A third problem, I think, is enforcing the agreement. This is somewhat different than policing, but it's related to that problem. For example, let's say you find someone stealing your car and you have a legal right to keep them from doing that. That's the policing problem. Now, you also need some reasonably inexpensive way to enforce your right to keep someone from expropriating your car. That's where the legal and information systems comes in. You take out you cell phone and dial 9-1-1 and report the theft. You get out your laptop and place a notice of craigslist. Police cars have electronics that aid in stolen vehicle identification. Ah, the police find your vehicle!
These three specific challenges combine to make common-pool resource problems difficult and potentially costly to solve. Of course, these three aspects of property rights enforcement arise in all markets. They're just significantly magnified when it comes to common-pool resources.
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