Can the market regulate environmental issues?
Nowadays, the concept of free market is the tool which allowed such a real development of the international trade. It allows people rather than the State to take most of the decisions related to economic activities and transactions.
It is one of the main goal of the theory of Liberalism.
In economy, this theory is based on the belief that there is a strong line between politics and economics. It recommends minimal state intervention and free markets, but also individual equality and liberty. It considers that the individual consumer is the basis of the society. So, individuals are supposed to behave rationally and to attempt to satisfy certain values at the lowest possible cost to themselves. But this theory assumes that all participants have complete information about the market.
With such a development of trade and industrialization during the last decades, we can wonder about the effects it had on the environment.
By knowing that the massive industrialization has been producing serious environmental issues, what we can wonder now is if the market can regulate environmental issues?
We will at first see that the development of the market permitted the creation of several institutions and treaties aiming to regulate the negative effects of the industrialization. But then, we will deeply consider these institutions and see if their work is really reliable and efficient.
The first thing to say is that the industrialization has caused many negative effects on the environment.
The main issue of this industrial development is global warming, which is defined as the increase of the average measured temperature of the Earth's near-surface air and oceans.
According to scientists, this increase is due to the greenhouse gas emissions, mainly coming from human activities.
Facing this global warming issue, the