Discuss the essential issue in this dispute.?
Answer:
The approach has been defended by media like the Economist. Take the case of emissions, The Economist has long proposed a market for trading these emissions and let offer and supply to reign free.
The theory is that prices will regulate emissions, so that a company, finding more and more expensive to buy extra emission rights, will ultimately reduce its own emissions (and thus the costs of acquiring extra emissions in the market).
Reducing costs is a priority of today-s companies, so helping the environment becomes something profitable and desirable from a financial point of view.
The essential issue here is the track record of those people & organisations that promote private ownership, because private ownership is essentially all about personal capital, and the use of capital in a capitalist society is always for gain.
When something is privately owned, it can be sold. As an example, the water board, which was a nationalised industry, owned by everybody in the UK, was sold off in a massive share issue by Thatcher some 20 years ago. The argument used to justify this action was that publicly owned companies are always wasteful in admin and can't be run as efficiently as privately owned companies. Twenty years later we find that water prices are through the roof, little money has been spent on the upkeep of pipes and big business is now the majority owner of all shares. What started off as many UK residents owning a share of water ended up with big business muscling in.
The same model applies to the environment. Private property can be bought at the right price, limited companies are always beholden to their shareholders and at the end of the day the only thing that matters is profit.
Those concerned for the environment, have, in my mind got right (and history) on their side.
The essential economic issue is an externality. Read more by looking up Coase's Theorem.
i agree
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