14 November 2011

Are Republicans Earth-Hating Hypocrites?

Well, the GOP is at again, this time trying to pass legislation that would allow border patrol agents to circumvent environmental regulations that protect drinking water and fragile national parks.

Northern Montana, post "border enhancement"

This is a thinly veiled attempt to wrest even more power from the already frail EPA.  Republicans claim that there's a market solution to pollution, and when certain conditions are met, that's definitely true.  But what they don't realize is that their ultra-conservative anti-government babble is making it impossible to implement successful market-based instruments (MBIs).  Instead, they create obstacles to success, and when environmental policies (undoubtedly) yield ineffective results, they scream "Big government!" and blame it on the left.

The success of MBIs depends on certain institutional structures.  In particular, regulatory agencies must have the power to enforce contracts.  Firm 1 won't be willing to negotiate a carbon trade with Firm 2 if neither of their emissions will be monitored by an independent agent (aka the EPA) because they'd both be better off just lying to the regulators.



So Republicans, if you're going to advocate for the free market, fine.  But be brave enough to craft an institutional framework in which the free market can succeed.  If you shoot your opponent in the leg before the race starts, victory means nothing.


No comments:

Post a Comment