By Jeff McMahon
Markets have proven more efficient than regulations and rebates at tackling the energy and climate challenge, a leading environmental economist argued recently in Aspen.
The most popular policies in the United States—rebates for appliance upgrades, energy efficiency and efficient vehicles—may cost society more than the problems they set out to solve, while markets produce the same results cheaply, said Michael Greenstone, the Milton Friedman Professor of Economics at the University of Chicago.
“Somehow we prefer to use these other policies, when markets would be less expensive,” Greenstone said June 30 at the Aspen Ideas Festival. “Our best hope for confronting this challenge is going to be by turning to markets…”
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