This may seem like a trivial question with an obvious answer.But what really is the proper role for individuals and institutions in addressing climate change ? An immediate and natural response may be that everyone should do their part. Let's see what that really means.
Decisions affecting CO2 emissions, for example, are made primarily by companies and consumers. This includes decisions by companies about how to produce electricity, as well as thousands of other goods and services; and decisions by consumers regarding what to buy, how to transport themselves, and how to keep their homes warm, cool, and light.
However, despite the fact that these decisions are made by firms and individuals, government action is clearly key, because climate change is an externality, and it is rarely, if ever, in the self-interest of firms or individuals to take unilateral actions. That's why the climate problem exists, in the first place. Voluntary initiatives - no matter how well-intended - will not only be insufficient, but insignificant relative to the magnitude of the problem.
Whether conventional standards or market-based instruments are used, meaningful government regulation will be required.
Climate change is a real and pressing problem. Strong government actions will be required, as well as enlightened political leadership at the national and international levels.
SOURCE: as reported by ROBERT STAVINS, Director of Harvard Environmental Economics Program; Huffington Post.
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