The Power of the Carrot
Current environmental policies all too often rely
on penalties. Penalties are only as good as the government’s
ability to catch the perpetrators.
There is an easier option: the carrot instead of
the stick. Instead of focusing just on those who destroy habitat,
have subsidies for those who preserve and restore habitat –
a reverse bounty. If the left-handed grunting kangaroo rat is
endangered by new development, give some property tax breaks to
property owners who have left-handed grunting kangaroo rats on their
property. Several good things will happen:
-
Enforcement becomes easy. Property owners will come forward to
report the nests of left-handed grunting kangaroo rats in order to
apply for the tax break.
-
We have an incentive for restoration. Many owners in
already developed property will opt to make their land left-handed
grunting kangaroo rat friendly in order to get the tax breaks.
-
The political climate will change. Property owners will begin
lobbying in favor of environmentalism in order to keep tax
breaks on the books even after the population of left-handed
grunting kangaroo rats has increased.
These
two changes alone will work, but we can do more.
Further Reading
The Machinery of
Freedom by David Friedman has an extensive discussion of the
economics of special interest lobbying. This book shows how
representative government tends to represent special interests
more than the common good because the common good is a dispersed
interest. A fascinating read.
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Copyright 2004, Carl S. Milsted, Jr. All rights reserved.
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