Presentation: A Free Market Strategy on Climate Change
Climate change is primarily caused by human activity and projects to impose major costs on the domestic and global economy. This does not justify large government expansion or pervasive interventions. An accurate scientific and economic framing of climate change actually propels the case for economic freedom. Effective mitigation requires lowering the global costs of reducing emissions and bolstering the state of free enterprise. Similarly, liberating private capital flows and shifting risk management to the private sector is especially important for adapting to a changing climate. In particular, a free-market strategy on climate change centers around:
- Advancing sound innovation policy;
- Reducing regulatory barriers to entry for new technologies;
- Liberating supply chains and liberalizing trade;
- Enhancing competition, consumer choice and transparency;
- Increasing tax efficiency;
- Improving climate risk information;
- Transferring risk management to the private sector; and
- Unwinding the subsidy regime.
