He’s arguing that if pollution was priced in, the market would optimize to find ways to reduce it. Which is true, except that:
This regulation is never going to actually be implemented without major loopholes.
The market will optimize for loopholes instead.
A large amount of ways to “reduce” pollution only works on paper (e.g. carbon credits)
It’s not exactly a novel idea, it makes sense in the theoretical scenario where we would have effective regulation. Which is also precisely the problem to begin with.
He’s arguing that if pollution was priced in, the market would optimize to find ways to reduce it. Which is true, except that:
It’s not exactly a novel idea, it makes sense in the theoretical scenario where we would have effective regulation. Which is also precisely the problem to begin with.