3 ms·
um, if people are being priced out, that could come from either supply or demand (or both or other factors). But I think the core point is that if individuals
by quadrangle 8y ago
um, if people are being priced out, that could come from either supply or demand (or both or other factors).
But I think the core point is that if individuals drop out of a market, that relieves demand which can keep prices down and thus allow others to keep consuming!
In other words, if many of us do the environmental thing and drive less, that just enables wasteful irresponsible others to more cheaply use up all the same gasoline in the end.
Or because LED lights got so efficient, places (in China incidentally) can plaster them over most of the surface of a building for no reason other than showing off, thus using up all the efficiency gains.
To actually reduce overall consumption and pollution, we need widespread social changes that make such consumption and pollution seem shameful (and/or illegal) even though the market price isn't itself discouraging.
The only market solution would involve effectively internalizing the now-externalized costs of pollution.