BUS 223 Lecture : Class 6
Document Summary
To harm someone, one must disregard their preferences. Peoples self-regarding preferences are captured in their voluntary transactions in free markets. Peoples preferences that are not captured in markets exchanges are accounted for through democratic decision making. In a democratic society with a marketed economy all preferences are accounted for through the market and law. Businesses who follow the laws and give consumers what they want are not harming anyone. Objection 1a: business often operate outside of democracies. Objection 1b (4): the effects of climate change transcend national borders. Objection 2: consumers don"t fully understand the climate change related implications of their choices. Objection 4: consumers often don"t have enough choices to express all their preferences. Objection 5: companies have responsibilities for the past. Not really an objection to the market solution, it assumes that the market solution doesn"t work. Companies should reduce ghg emissions: by how much. What if they don"t: carbon tax.
