The word “environmentalist” means something very different than it did 20 years ago, and not necessarily in a good way. For conservatives the word has negative connotations associated with liberal policies that steamroll those on the ground. And it’s true that environmental fixes can sometimes undermine the free market.
But it is possible for conservatives to also care about the environment; they just do it differently. One conservative approach to environmental policies is called free-market environmentalism.
This article will go into depth about what free-market environmentalism is, how Governor Cox’s beliefs fit into it, its applications in Utah and a possible future for the free market and the environment.
What Is Free-Market Environmentalism?
Free-market environmentalism is the philosophy of combating environmental issues through the free market rather than through government intervention.
Proponents of the philosophy, including most prominently Utah’s Governor Spencer Cox, argue that free markets have historically been more successful than government has in helping the environment.
Philosopher Tony Smith offered a more cynical view of the market and a strong critique of free-market environmentalism. He wrote that when environmental problems are turned over to markets, the markets tend to fail in producing enough concern for these problems.
There are many examples of the free market knowingly hurting the environment:
- Environmental rights belonging to citizens lead to constant confusing lawsuits.
- Corporations, under pressure to maintain quarterly earnings, neglect long-term investments, including those that would protect the firm’s assets from environmental damage.
- A family farm that has stayed in the family for generations overworks the land to avoid foreclosure though they know it’s not a good practice.
Economist Richard Stroup, on the other hand, showed that this philosophy and its historical evidence are mostly sound. However the applications work only if certain characteristics of property rights are in place. For it to work, rights must be clearly defined, easily defended and fully divestible.
Examples from both Stroup and Benji Backer, president of the American Conservation Coalition, show that once property rights are secured, free markets are great for the environment:
- Fishermen in England and Scotland obtain damages against polluters of streams and vigorously defend their rights. The rights are established by precedent, and going to court is seldom necessary.
- A car-less community is being established in Arizona because it was cheaper. The prices and permits needed in California make it an impossible project there.
- A privately-owned park and family recreation area brings thousands of people a day. The government buys it, and by the 70s, it is an “ugly, dangerous hangout for drug users.”
Governor Cox’s View toward Regulating the Environment
Utah governor Spencer Cox sees the value in free-market environmentalism.
In a conversation on the topic of “Climate Innovation in a Red State,” Cox shared his views with the University of Utah’s Hinckley Institute of Politics. Many of his comments pertained to acknowledging the needs of the environment through market-based policies and practices.
“We’re not going to be able to regulate our way out of the climate crisis; we have to innovate our way out of it,” he said.
This was where Cox brought in the free-market approach. It’s also where he saw a lot of states from both sides working together through mining minerals, creating hydrogen hubs, and improving air quality.
He also mentioned the need for coal plants, to hold us over where renewable energy fails, and the great importance of supporting nuclear energy. But as we saw from recent high gas prices, it’s not just about making traditional fossil fuels more expensive. All that does is make poor people poorer, and bad countries like Russia more powerful.
When it comes to improving air and water quality, which are issues that Utahns care about, we can speed innovation without regulating the economy and hurting people.
When you look at it that way, it’s not so much of a government issue. “It’s not just that you get enough politicians to agree with this,” Cox added. “Government is not going to fix this on its own.” In fact Americans quickly stop caring about climate change when gas prices rise. It was getting the market on board with this that was going to matter.
Applications of Free-Market Environmentalism
Free-market environmentalism, when applied, agrees with many Republican values of helping the environment without hurting the economy. Governor Cox has written many of these values into his policies.
However not everyone agrees with the governor’s philosophy. The Cox Administration drew some criticism from the Sierra Club over its new energy plan when it was proposed in February of 2021. They disagreed particularly with the “Rural Matters” priorities, including plans to further subsidize coal and oil extraction, support the Lake Powell pipeline and fight for state control of federal lands.
The plan committed Utah to helping communities and businesses obtain affordable, reliable energy. It also used similar language to the governor’s in his conversation at the University of Utah. “Utah is committed to pragmatic, market-driven climate solutions that enable innovative energy production,” it read.
Despite the Sierra Club’s opposition, the plan continues to guide Utah policies today.
The Future of the Free Market and the Environment
Maybe it is possible to take care of the environment without destroying the markets. It is possible to help the markets thrive without destroying the environment. And the future could change the way we look at the environment in many good ways. Stroup saw a bright future of privately-owned parks, lands, oceans, even atmosphere!
Governor Cox pointed out the needs of Utahns in this issue. He argued that Utahns need an environmental plan that works for them, one that doesn’t have to do with artificially raising gas prices. Businesses, rather than government agencies, could be the ones making those decisions.
“Markets have the ability to change much quicker, in much bigger ways than government,” Cox said. There are environmental solutions out there, and according to Cox, the markets are the ones to find them.
– by Abbie Call
Feature image courtesy Erik Scheel.
Abbie Call – Cannonville/Kirksville, Missouri
Abbie Call is a journalist and editor at The Byway. She graduated in 2022 with a bachelor’s degree in editing and publishing from Brigham Young University. Her favorite topics to write about include anything local, Utah’s megadrought, and mental health and meaning in life. In her free time, she enjoys reading, hanging out with family, quilting and hiking.
Find Abbie on Threads @abbieb.call or contact her at [email protected].