Product Prices Need to Reflect Environmental Costs
T. Homer-Dixon and S. Elgie, Globe and Mail | August 8, 2008
The problem of modern capitalist markets in times of global warming is that we do not have to pay the true environmental costs of the products we buy. ++ There are two possible solutions: either we apply green taxes to reflect a product's environmental harm, or we create a market for nature's services. ++ Economists prefer the first suggestion as it is more efficient, involves less bureaucracy and gives clear signals to the consumers. ++ The economy of the future needs to reward energy efficiency and clean production.
