David Ravensbergen's blog

Fri, 2013-08-30 11:53David Ravensbergen
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At the Limits of the Market Part 2: Why Capitalism Hasn't Solved Climate Change

climate change, capitalism, environmental issues in Canada

Read At the Limits of the Market: Why Capitalism Won't Solve Climate Change, Part 1.

One answer to the question of why free market capitalism has failed to generate technological solutions to the crisis of climate change is that green innovation simply isn’t as profitable as speculation. In an era when financial markets generate record profits and investment banks are too big to fail, the long work of investment, research and construction of new energy infrastructure simply isn’t attractive to profit-seeking corporations.

Faced with the clear failure of the free market to respond to the approaching dangers of climate change, politicians have reacted by attempting to coax corporations into serving the needs of people as well as the bottom line. This is typically referred to as finding “market-based solutions.” It sounds good at first: we’ll harness the best minds in the private sector to develop new technology, create new jobs and solve climate change in the process.

But all too often the phrase “market-based solutions” works as a kind of coded communication. In effect, it signals to corporations that the government will not take any measures that could interfere with their business model. Rather than impose meaningful restrictions on emissions or the extraction of fossil fuels, market-based solutions focus on changing behavior by creating the right set of incentives.  

Thu, 2013-08-29 09:58David Ravensbergen
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At the Limits of the Market: Why Capitalism Won't Solve Climate Change, Part 1

climate change, capitalism, environmental issues in Canada

One of the great mysteries of contemporary capitalism is the fact that as a system it appears absolutely incapable of responding to the crisis of climate change. Why can’t a system that made the automobile into an accessible mass consumer good provide us with clean and efficient mass transit, or at the very least electric cars? Why are we still burning coal, the energy source that drove the Industrial Revolution over 200 years ago? Where are all the new green enterprises leading the way into a low-carbon future?

From Joseph Schumpeter’s description of “creative destruction” to the fabled entrepreneurial powers of innovators like Steve Jobs, we’re accustomed to thinking that capitalism provides the social and economic framework that best nurtures human creativity and fosters technological innovation.

But with atmospheric concentrations of CO2 sailing past 400ppm and scientists warning of a global environmental catastrophe caused by the breaching of the nine planetary boundaries, the forces of the market are curiously silent.

Sat, 2013-08-03 08:00David Ravensbergen
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Two Energy Futures: Barriers to Clean Energy Political, Not Technological

two energy futures

For Canadians looking for inspiration in the fight for a cleaner and fairer energy future, there’s a valuable new resource available at Two Energy Futures. Created by the activist group UK Tar Sands Network, the website provides visitors with a detailed infographic that shows the contrast between a fossil-fuelled future and a future powered by clean, renewable energy.

Projecting from our current energy usage, the first future shows that continued reliance on fossil fuels would mean a steady expansion of extreme energy sources, including fracking, deep-sea drilling and the tar sands. The climate impacts of these dirty energy sources will be increasingly severe, and the social implications include intensified global conflicts and the further exploitation of vulnerable populations.

While the parameters of our current trajectory should be familiar, the cleaner, fairer energy future contains a surprise: the world’s energy needs could be met using current levels of technology in wind, solar and other renewables. Coupled with transformations in transportation infrastructure and the elimination of the undue political influence of fossil fuel companies, this future presents an outline for averting the worst effects of climate change and building more just societies.

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