The Largest Externalities Ever

Abstract

The notion of an externality is firmly grounded in economic theory. But it is not undone by itself. To eliminate external effects like the GHGs and its terrible consequences like sea level rise, droughts and unpredictable weather manifestations, policy-making and policy implementation or management is required. It all depends upon incentives and available technology. The PD nature of global coordination is a major hindrance, which is also true of the lack of large scale geo-engineering. It is increasingly likely that neither global coordination nor country resilience will be able to manage the consequences of this evolution towards a hotter state for Planet Earth.