A Case Study and Cautionary Tale: Climate Policy

Abstract

The climate policy debate is a prime illustration of the limitations of purely materialist economic analysis. Even though the climate issue has been couched largely in economic terms, economic arguments have not been sufficient to bring about a consensus. The Kyoto Protocol is winding down without any successor agreement. Kyoto itself has been a failure — the most significant signatories have not fulfilled the commitments agreed to under it, the United States never acceded to the treaty, and the largest rapidly developing countries such as China and India have not agreed to any specific emissions reductions.¹