Economic Incentives

To Fight Climate Change, Removing Bad Incentives Is Just As Vital As Rolling Out Good Policies

The above mentioned statement is an excellent epitome of having a secure future for upcoming generations. The world we live in runs on gasoline and fossil fuels. Burning of gasoline produces carbon dioxide which is notorious for increasing global warming.

Kudos to the exemplary work of political parties at annual summits of G7 and G20, for improvising on particular policies which work on devising new strategies to implement the concept of clean energy and resort towards environmental safe methods.

To fight climate change, this is only half of the work. The other half lies in removing bad incentives.

Thoughtful Questions While Making Any Policy:

The government should think about the answers of any questions, while formulating any type of policies.

  • Is the government providing the right type of incentives to public sector?
  • Is there a clash of any policy with other policy objectives?
  • Is greater good being observed or all the departments of government contributing towards leg pulling and getting in the way of each other?

Their Purpose

While these questions may appear simple, their answers are often complex to find. The ideal approach for any government would be to provide its citizens with greater green spaces, lesser congestion and holistic efficiency in every walk of life

Factors such as lesser amount of funds and a careless attitude of executives of a country may arise a need of competitive governing, which calls for subsidy of fossil fuels. Not only, this is a direct contributor towards air pollution but also this increases overall cost of society.

A good way to prevent such evils is by introducing tax incentives for private driven cars and by removing administrative boundaries, just like the working of Singapore.

There are certainly more than one ways to complete an ultra-objective. Let’s hope our government continues to do the same good work regarding climate change.