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American Focus > Blog > Economy > When externalities conflict – Econlib
Economy

When externalities conflict – Econlib

Last updated: April 27, 2025 12:00 pm
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When externalities conflict – Econlib
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The air we breathe is increasingly laden with the toxic byproducts of coal-fired power plants, leading to significant negative externalities that harm public health. Moreover, the carbon emissions from these facilities are major contributors to the alarming trend of global warming. A recent article in The Economist delves into the disturbing acceleration of climate change, positing that the ambitious goals of achieving cleaner air and a cooler planet may be at odds with one another.

Recent research published in Science by Helge Goessling and his team at the Alfred Wegener Institute in Bremerhaven reveals that this century, Earth has been reflecting less sunlight back into space than it did in the past. Strikingly, 2023 was recorded as the dimmest year thus far, largely attributed to a notable decrease in cloud cover, particularly in the northern mid-latitudes.

While new IMO rules aimed at reducing ship engine emissions could be a contributing factor, the extent of this dimming suggests deeper issues at play. Bjorn Samset from CICERO, a Norwegian climate research institute, points to another culprit: the reduction in sulphate emissions, which is not merely a result of cleaner ships but rather the outcome of stringent measures taken against Chinese coal-fired power plants. Since 2014, China has made strides in curtailing sulphur emissions by closing the most polluting plants and installing scrubbers in others. This cleanup effort appears to be having a significant impact across the North Pacific, leading to cleaner air and fewer clouds, thereby exacerbating the warming trend.

The graph below illustrates the recent surge in global temperatures:

See also  Seigniorage - Econlib

In light of these findings, some have proposed “geoengineering” as a potential solution to combat global warming. A recent piece in The Guardian outlines three such strategies:

Stratospheric aerosol injection:

Aircraft would disperse tiny aerosol particles to reflect sunlight back into space.

Cirrus cloud thinning:

This less understood method involves seeding thin cirrus clouds in the upper troposphere with ice nuclei to diminish their lifespan and enhance cooling.

Marine cloud brightening: 

Vessels would release aerosol particles to boost the reflectivity of low-lying clouds.

However, geoengineering initiatives are fraught with political challenges. The benefits and drawbacks could disproportionately affect different nations, particularly if rainfall patterns are altered. Nonetheless, it seems likely that geoengineering will be explored as a viable option, especially as the global community appears to be losing faith in the efficacy of reducing greenhouse gas emissions to combat climate change.

It’s essential to recognize that we are already engaged in a form of “geoengineering” through our alterations to the global climate. The pressing question remains: should we attempt to modify the climate in a constructive manner rather than a destructive one?

PS. Personally, I’ve positioned myself as a moderate in the climate debate, standing somewhere between alarmists and those who dismiss the issue as a mere fabrication.

TAGGED:ConflictEconlibExternalities
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