The problem is when a particularly polluting resource is abundant, which is true of oil and gas. A decade ago peak oil theory was fashionable. It claimed that because oil was a finite resource demand would soon overtake supply, leading to the terminal decline of the industry in the foreseeable future.
The flaw in the theory is that new technologies are constantly being developed to extract resources from untapped sources, be it shale or mining deeper wells – also driven by capitalist incentives. Peak oil may become a reality one day, but we still have enough oil and gas to fry the planet many times over.
And that is why expecting the market alone to solve global warming is as much a mistake as believing that an end to markets will solve it. As long as fossil fuels remain relatively abundant they will be cheap enough to use profligately. Some government intervention is needed to change consumer behaviour. This is perfectly compatible with capitalism: the state shapes the context in which markets can operate, from defending property rights to regulating to protect consumers. But over recent decades we have become reluctant to use the state to defend the rights of the commons – that needs to change.
A practical example of this would be getting rid of internal flights in Britain. Few of these flights are essential – it takes around half an hour longer to get to Manchester from London by train than it does to get there by plane. And this doesn’t include the extra hour it takes to pass through airport security. Yet the cost of train travel in Britain is so exorbitantly expensive – and trains are so unreliable and uncomfortable – that people regularly choose to fly.
The unwillingness of the state to restrict the use of inefficient and environmentally damaging transport brings us back to the belief in liberal individualism: that a person should be free to travel how he or she pleases, regardless of the consequences.
On climate change, as with much else, the public good is not always synonymous with the interests of private, wealthy individuals. Indeed, the two are often opposed. Yet it needn’t take any large-scale coercion to reconcile these competing interests, just a greater willingness on the part of the state to move people towards sustainable choices.
Our politicians appear to re-learning this lesson, albeit slowly. Prime Minister Theresa May vowed to intervene in “broken markets”, and the 2017 Conservative Party manifesto rejected what it termed the “cult of selfish individualism”. However we still have some way to go: which politician will call for a ban on private motor cars within our congested cities, as Peter Franklin asked on UnHerd last week? No prospective candidate for the mayoral seat in London – ranked as one of the world’s worst commuter cities – has yet dared propose the idea.
As climate change ramps up, we can expect massive price-hikes for basic foodstuffs due to crop failures and severe flooding in coastal areas. As it prompts waves of migration from draught-stricken parts of the world, social tensions are likely to increase as populists stir up resentment against newcomers. The resulting tide of national chauvinism risks unravelling the social fabric that makes a country like Britain worth living in. There is still time to ward off the worst-case climate scenario, but as the IPCC put it, it will require “rapid, far-reaching and unprecedented changes in all aspects of society”.
Those who have traditionally resisted the state taking any action at all to moderate human behaviour – typically in the name of classical liberal ideology – thus face a paradoxical choice: accept that liberal individualism means death for the common life, or acquiesce in the destruction of the very freedoms they purport to be defending.
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