Capitalism can save the planet (With carbon trading we can solve the climate change crisis without damaging economic growth)

Capitalism can save the planet (With carbon trading we can solve the climate change crisis without damaging economic growth)

30 Oct 2007

The panel debate whether capitalism offers a viable solution for the challenge of reducing carbon dioxide emissions, and whether carbon trading can solve the climate change crisis without damaging economic growth.

Arguing in favour of the motion are Tim Harford, John Redwood, and Eric Bettelheim. Tim Harford starts by supporting the motion. He emphasises the necessity to change the decisions made by individuals rather than introducing bureaucratic controls, which he regards as counterproductive. As a solution to effectively reduce carbon dioxide emissions he suggests the implementation of a carbon price set by the government, which will subsequently influence decisions made by individuals through market mechanisms. John Redwood stresses the power of the free enterprise system linked with capitalism. He emphasises the idea that capitalism works in parallel with the grain of human nature, and that capitalistic societies will subsequently produce a green planet as they call for it. Finally, Eric Bettelheim speaks in favour for the motion. He reminds the audience of the failure of the predictions presented by the Club of Rome, which failed as it did not take into account the role of markets in the allocation of resources. Referring to the success of the sulfur dioxide trading program in the US, he speaks in favour of an emission trading scheme for carbon dioxide.

Arguing against the motion are Lord Lawson, Frances Cairncross, and David Rieff. Lord Lawson emphasises that carbon trading is a soviet style commandment and points out the failure of this trading system. Referring to the costs linked to the implementation of programs for carbon dioxide reduction he identifies them as the reason for the absence of efficient programs. Finally he voices his doubts on the existence of a climate change crisis and states that there was no global warming this century. Frances Cairncross argues that capitalism lacks the tools to tackle the climate change by pointing out the environmental destruction in China as a country that seeks economic growth. Caincross concludes that there is no possibility of effectively dealing with the problem of climate change without threatening economic growth, and quotes an analysis conducted by the International Energy Agency. Finally, David Rieff speaks against the motion. He points out that carbon dioxide trading systems will only work in advanced capitalist countries, and not in countries like China and India where population growth demands high degree of energy supply. Rieff concludes by labeling the belief in capitalism being able to save the planet a 'utopian fantasy'.

First Vote: 328 For, 185 Against, 199 Don't Know

Final Vote: 343 For, 322 Against, 74 Don't Know

The motion is carried by 21 votes.