Growth for Good: Reshaping Capitalism to Save Humanity From Climate Catastrophe by Alessio Terzi

Author:Alessio Terzi [Terzi, Alessio]
Language: eng
Format: epub
Tags: Business & Economics, Economic History, Free Enterprise & Capitalism, Economics, General, Development, Sustainable Development, Environmental Economics, Organizational Development, Political Science, Public Policy, Economic Policy, Environmental Policy, Technology & Engineering, Environmental
ISBN: 9780674258426
Google: TT1vEAAAQBAJ
Publisher: HarvardUP
Published: 2022-05-24T20:41:30+00:00

This counts as a credible strategy; it is devised to be compatible with individual, group, and national incentives, and also takes into account the current power relations in society. These characteristics in turn maximize the strategy’s overall political feasibility and therefore viability. By contrast, any utopian vision built on the premise that “the future can be whatever we want it to be” is not credible. In all likelihood it will fail to garner political backing, prove illusory, or rapidly turn into an undesirable dystopia.2

In line with the principles listed above, the most credible policy approach will aim to harness the forces of capitalism. For this efficient machinery to be reoriented to the societal priority of the moment, however, strong government action is needed, even if its role is time-limited. This strategy, then, takes a middle ground between those advocating radical laissez-faire and those promoting command-and-control solutions. In the midst of Covid-19 and its economic fallout, extraordinary policy measures were taken to shore up society, cutting through entrenched ideological positions regarding the proper role of government in the economy. Measures were taken that would previously have been thought radical or impossible. Having swung the political pendulum in favor of government intervention, the Covid-19 crisis has created a unique opportunity to jump-start the green transition.

With that level of intervention, would our system still be considered a free market? The model proposed here is definitely one that moves away from the neoliberal tenets, such as low taxation, embedded in the so-called Washington Consensus. It also moves away from unfettered free trade, complete capital liberalization, and minimal regulation. At the same time, it remains solidly anchored in capitalism. To define this economic model, geared toward addressing a pressing societal problem, some have used colorful terms, calling it a moonshot or mission economy. These are inspired by the historical experience of the Apollo programs, where an activist government worked in tight cooperation with the private sector toward a common goal.3 In that case, the vision was to put a man on the moon and win the space race against the Soviet Union. Now, the mission is to reach zero greenhouse gas emissions by mid-century and, more broadly, to reduce the environmental impact of economic activity.

While some parallels are evident, this narrative carries some risks. To be sure, the Apollo program marked a high point in public-private partnership. At its peak, over four hundred thousand people were working for it, and over twenty thousand businesses and universities were contributing in some way. Still, while all this was happening, American citizens could carry on with their lives. Decarbonizing the entire economy at the necessary speed will be different, in that all actors in society—not only governments and some green-innovation firms, but all businesses, the financial sector, and every individual—will be involved and affected. It is impossible to imagine that people will simply carry on with their lives as though nothing has changed. As reflected in Figure 8.1, the green transition will touch virtually every aspect of their

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