"System change is now inevitable. Either because we do something about it, or because we will be hit by climate change. '...

"We need to develop economic models that are fit for purpose. The current economic frameworks, the ones that dominate our governments, these frameworks... the current economic frameworks, the neoclassical, the market frameworks, can deal with small changes. It can tell you the difference, if a sock company puts up the price of socks, what the demand for socks will be. It cannot tell you about the sorts of system level changes we are talking about here. We would not use an understanding of laminar flow in fluid dynamics to understand turbulent flow. So why is it we are using marginal economics, small incremental change economics, to understand system level changes?"

Monday, September 17, 2007


Irene and I have joked about those carbon offset bumper stickers being a form of climate absolution. That said, to some limited extent the idea makes sense, though it may give people the wrong idea of how cheap it would be to solve the climate issue. The problem is that the marginal cost per unit of remediation goes up with volume, which is one of the ways a closed environment confounds the open-system thinking of economists.

Anyway, it appears that one entire nation is committed to this form of absolution. Guess which country is absolved of its sins?

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