A creature who relied on the market to save it

BRIEF – 16 October 2009 – The Economist’s latest edition makes a clear case for not relying completely on the market to solve our energy and emissions problem.

On 12  October the UK’s Committee on Climate Change, chaired by Lord Turner (who is also a financial regulator), published its first report concluding that “although recession is holding emissions back, they are dropping at an average annual rate of under 1 per cent, rather than the 2-3 per cent needed, The Economist says.

“The committee’s diagnosis was stark: the market, left to its own devices, is failing to deliver. Consumers are not buying energy-efficient appliances or insulating their houses, carmakers are failing to get emissions down and power companies still prefer fossil fuels to greener alternatives.

“A bracing dose of re-regulation was prescribed: the CCC suggests compulsory emissions caps for cars, feed-in tariffs to help green-power producers and a state-enforced minimum carbon price to encourage nuclear an “clean” coal power stations. David Kennedy, the committee’s chief executive, put it plainly: ‘We’ve stuck with the market a long time,’ he said. ‘We don’t think we can stick by it any more.’”  Read More >>>