Market-Based Environmentalism and the Free Market: Substitutes or Complements
Roy Cordato has presented an insightful critique of market-based environmentalism. His analysis provides several reasons why one should be suspicious of recent attempts to shape environmental policy through the use of “market-based” rules. Four of Cordato’s criticisms are especially telling.
First, environmental problems exemplify not market failure but institutional failure. The lack of well-defined and -enforced private property rights causes the voluntary interaction of individuals to produce undesirable outcomes