A real market-based approach
Conservatives often call for market-based solutions which they frame as reducing permitting roadblocks, shifting R&D tax policy, or eliminating preferential treatment for mature technologies (see American Conservation Coalition and Citizens for Responsible Energy Solutions). Others frame a price on carbon emissions as the true market-based solution (see Center for Climate & Energy Solutions). These are solid suggestions, and I am a strong supporter of a price on carbon emissions. But a real market-based approach starts with shifting the part of the market we have direct control over - our purchases - and then works out from there.
I agree with the value of an open market. And I agree that when a centralized government takes control it often misses an optimal path and does not foster the same creative solutions generated when there is open competition in a market.
I also believe that markets have both supply and demand elements. Often the calls for a market-based solution structure themselves around bringing new products to market or shifting price signals - and little is asked of us as individuals.
A real market-based solution includes shifting the demand side of the market. Supporting a market-based solution to climate change requires that the people buying goods change their purchasing behaviors. When we buy a good or service, we are the ones influencing the market, just as much as the producer is influencing the market by supplying a good or service. Modifying our purchase decisions is a key element in any market-based solution to climate change.
Everytime we order chicken or fish for dinner instead of beef, or every time we buy a meal without meat, we impact not only the emissions we cause but also the market for these goods (and services in the case of shifting which restaurants we eat at.) When we eat a good vegetarian fast-food meal at Chipotle instead of a Big Mac at McDonalds, we strengthen the market for better vegetarian options. Our purchase decisions are the one thing completely in our control, and are the most important lever for us to use to support a market-based solution to climate change.
There is nothing sacred about eating a beef patty for lunch instead of pork barbeque or even falafel. It is easy for conservative writers to suggest that shifting to vegetarian diets is too absolute of a change to request and not realistic. This response avoids the consequences of our actions - an approach that is clearly not conservative. Even shifting half our meals away from eating meat makes a difference, as well as completely avoiding beef. This both reduces our emissions and shifts the market.
Everytime we choose to vacation at a dream spot that is within driving distance instead of choosing to get on an airplane to start a vacation, we both reduce our emissions and impact the market for air travel and destination accommodations and restaurants. The same choice is involved for video-meetings we hold on-line instead of in-person meetings we fly to. We want airlines to find an alternative to jet fuel that emits less greenhouse gasses, but currently these airlines do rely on jet fuels produced from crude oil. So it is our choice if we purchase that ticket and fill the planes or choose a different destination that can be equally enjoyable and use our purchase decision as part of a market-based solution to climate change. If we do not buy air travel fueled by the current jet fuel mix, less planes will fly.
If we do not commit to reduce our own greenhouse gas emissions, why do we expect the government to tell us to take these actions? This truly makes no sense to me. We can outlaw internal combustion engines over some period of years, but if each of us committed to buying electric vehicles or an efficient hybrid, we would push the markets in a truly market-based manner. All technology shifts require time for consumers to start using the new products. It is our choices that drive that market shift. And we can start today by accepting personal responsibility for our carbon footprint and shifting our purchase behavior (shifting market demand):
Buy an ev or hybrid automobile the next time we’re in the market for a new or used car.
Eat at restaurants that offer vegetarian (and at least non-beef) options we enjoy.
Plan the meals we cook to include vegetarian recipes on more nights each week.
Vacation closer to home, drive, have more people in our car.
Evaluate our home for areas where we still burn fossil fuels and plan ahead for the next time we need to get a furnace, hot water heater, stove or range.
All of these actions shift markets. The reason there are so many hamburger stands is because we eat at them; the reason there are more gas stations than ev charging stations is because more people have purchased internal combustion engines than electric vehicles. If we want this to change, start by changing our own behavior.
The most powerful approach to support a market-based solution is to start by evaluating what I control: my own purchases in the market I am trying to influence. I start there, then continue by asking the government for help in the form of policies that support the values I live by.