When I was younger, I honestly believed in the explanation that left to their own devices, free enterprise will work to protect the environment, as anything that hurts the market will hurt profits. What I didn't take into account was that this argument doesn't work for enterprises run by beings with limited lifespans. All except the most empathic humans will not incur any cost to avoid consequences that are beyond th…
I consider myself a really pro market guy, but I can't agree with the statement: > free enterprise will work to protect the environment, as anything that hurts the market will hurt profits I mean, isn't the environment the prime example of a situation where externalities and the tragedy of the commons describe the problems for the free market to solve the problems at hand? Further, free enterprises exist to maximise…
> 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.