Friday, March 09, 2007

Free Market Environmentalism I

A journalist’s insightful journey to embracing free market environmentalism.

March 2007
Volume 25 | Number 1
The Road to an Epiphany
By Matt Ridley


In 1987 I became chief correspondent for the Economist in Washington. My predecessor gave me a few tips as he moved to London. One of them was: “If you get an invitation to a PERC meeting in Montana, grab it! You’ll have a great time in the Rockies watching elk and, although they’ve got some crazy ideas, they are worth listening to.’’

He was right. I went to a PERC journalists’ conference, right in the middle of the infamous Yellowstone fire, which proved to be a big distraction. Still, I recall Terry Anderson bugling to elk, Aaron Wildavsky making no sartorial concessions to the West, and some great late-night arguments about the role of the state.

It came at a time when my eyes were opening. Aged 30, I was a keen conservationist and enthusiastic naturalist. I had briefly been a field research biologist before I became a journalist and I was born on a farm in northern England. But it hardly occurred to me until then that conservation could be done by anybody other than governments. And like most Europeans, I knew all about “market failures” and not nearly enough about the perverse incentives and bureaucratic momentum of government failures.

Meeting PERC and reading Terry and Don’s book set me thinking. The following year I found myself covering the Clean Air Act revisions as they passed through Congress, and I was very struck by how most of the environmental organizations dismissed emissions trading in sulfur and nitrogen dioxide. It sounded to me (and later proved) to be a very good idea.

But it was November 1989 when the penny finally dropped. Not only were communism’s appalling human crimes bared for the entire world to see, but its environmental ones were as well. The day the Berlin Wall came down, I recalled a conversation I had a few years earlier on an airplane with a prominent British pop star (now a respected leftist politician) about how happy East Germans really were under communism and how much freer and more sustainable their lives were than those of Americans. He’d been there. He knew. I resolved the day the Wall came down to stop tolerating such excuses for all forms of state domination.

Ten years later I was plowing a lonely furrow as a pro-environment, but pro-market, newspaper columnist in Britain. My stance baffled people. I met (and still meet) absolute incredulity rather than opposition from state-employed conservationists. It is not that they think command-and-control is the only way to conserve; it’s that they have never even considered an alternative—never imagined markets generating incentives. Grimly they repeat the mistakes of Gosplan (the committee for economic planning in the Soviet Union), wondering why their central planning, nationalization, and confiscation of people’s interest in wildlife and amenity doesn’t seem to generate enthusiasm.