Abstract and Keywords
The intergeneration aspect of climate change makes economic reasoning about it more problematic than one might think. Economic reasoning looks for ways more efficiently to allocate or exchange property rights and — sometimes by determining those rights — to resolve collective action dilemmas. This article reveals that economic theory cannot provide a useful way to think about climate change. Climate change is not a collective action problem because individuals today have no common interest that would lead them to believe they have more to gain overall as individuals from the restrictions placed on others than they have to lose from accepting those restrictions themselves. It argues that an efficient allocation of resources, since it depends on exhausting the benefits of trade among the people who can trade (the living), cannot in any direct way respond to the needs or interests of future generations. An efficient policy therefore cannot be a sustainable policy.
Access to the complete content on Oxford Handbooks Online requires a subscription or purchase. Public users are able to search the site and view the abstracts and keywords for each book and chapter without a subscription.
If you have purchased a print title that contains an access token, please see the token for information about how to register your code.