Although many environmentalists argue that markets and prosperity are the cause of environmental degradation, our analysis begins with the premise (based on strong evidence) that markets are the source of prosperity and that prosperity and property rights are necessary for environmental quality. If economic growth and international trade are weakened by ill-conceived, risky policies, political support for environmental protection will be reduced, and we may end up with a poorer economy and environment.
Given President Obama’s focus on climate change, we begin by asking whether the administration’s carbon reduction targets are realistic; whether they are likely to have a significant impact on global temperatures in the relevant political time frame; what it will cost to achieve these targets; and what regulatory controls (e.g., trade policies) would be necessary to make them effective. We emphasize political time frame because politicians seldom see beyond the next election cycle, whereas the effects of and solutions to global change require decades.
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Source: Hoover Institute "Defining Ideas"
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