As GP posted, this is a problem of profit maximisation over certain timeframe and tragedy of the commons illustrates that very well. Maximising profits over a q

As GP posted, this is a problem of profit maximisation over certain timeframe and tragedy of the commons illustrates that very well. Maximising profits over a quarter, year, and decade require different strategies. Given increasing uncertainty over longer timeframes and limited lifespan of executives/shareholders there is decreasing incentive to maximise profits over longer timeframes. > The only circumstance under which I expect the free market to freely solve any environmental issues is if the consumer demands more (truly) environmentally friendly products and services, moving the demand and hence the profit from polluting products. I believe both you and GP are correct as there is very little incentive to protect externalities affecting current business model over extended periods.