It is generally assumed, in economics and politics, that the
atmosphere is "free". However, the greenhouse effect and global
warming have shown this to be a false assumption and the need for
active policies to promote preservation of this finite resource are
becoming ever more urgent. In "Energy Efficient Policies", Victor
Anderson argues for alternative policies to promote energy
efficiency in response to the changing composition of the
atmosphere and global warming. As the industralized West consumes
half the world's energy, despite accounting for only one-sixth of
the global population, the study focuses on energy policies in the
OECD. The argument centres on the need to end the greenhouse effect
by making the transition from a carbon economy to one based on
renewable resources. This in turn raises the case for the
introduction of the controversial progressive carbon tax. However,
energy efficient policies, may at least in the short term, be
expensive to implement. The author illustrates some of these
economic difficulties by use of case-studies, including the
government's attempt to promote energy efficiency in the UK.
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