In this article, we see how the Obama administration is attempting to regulate the climate and energy market with the cap and trade policies that is favored by Obama administration. Despite the fact that climate change is a national security threat, we see how other competing aims such as creating jobs for the economy complicates the political decision making process. This is thus a case in point of how the government attempt to allocate resources efficiently is often politicised and complicated by interest groups.
Wednesday, January 27, 2010
Advocates of Climate Bill Scale down their Goals
I thought this would be an appropriate addition to our class discussion on market failure and the role of government in regulating such failures.
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2 comments:
I think that this article is a excellent example of the difficulty of allocating resources. Obamas State of the Union address was most certainly affected by interest groups.
What John Kerry said in this article is true: The sooner we do it, the cheaper it will be. The problem is getting Washington on board with SOME sort of plan for the future in terms of energy and the environment. So far it has been a lot of talk about what NOT to do and the implications that any energy and environmental legislation will have for the U.S. in the short-term. Given the status of the economy right now it is easy to see why the government doesn't want to impose any hard legislation concerning things that don't necessarily affect us right now, but in the next few years (when the economy is on the upswing) there will be another excuse as to why cap and trade, cap and dividend, or other carbon reducing incentives are not imposed.
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