Unfettered Capitalism

Capitalism favours economic growth, irrespective of how damaging that is. On current trends (average annual growth of 3%) the world economy will be 17 times its current size by 2100!

Capitalism fails to provide incentives to address long term problems. Climate solutions make little money under current economic conditions.

The oil price is likely to remain low-ish for the foreseeable future, owing to fracking cost structures. Between 2015 and 2017, the lower oil price led to an increase in demand of 5 million  barrels/day (FT, 5 Jan 2018).

Unregulated capitalism suffers financial crashes. Each financial crash exacerbates inequality and in turn, instability. Conflict damages the environment still further.

Capitalism leads to specialisation, but climate change is a multi-disciplinary set of problems and solutions

Capitalism favours incumbents. We need a “catalyst” to overcome them, especially the fossil fuel industry.

Carbon markets are proving ineffectual. Unfortunately capitalism favours them over carbon taxation, which is much more efficient at pricing externalities.

 

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