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Statogenic climate change? Julian Simon and Institutions

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  • Vincent Geloso

    (George Mason University)

Abstract

Outside of economics (and even within), Julian Simon is mostly remembered for his famous bet on resource prices against biologist Paul Ehrlich. The bet is frequently used to illustrate how some environmental scares are exaggerated. In the rare instances when more details are added, the emphasis is always on how the role of innovation in promoting socio-economic progress which, directly or indirectly, solves environmental problems. However, Simon had a rich and complex view of the role of institutions in modulating the pace of socio-economic progress (broadly defined) and the extent of environmental problems. In this paper, I highlight the unappreciated institutional conditions that Simon placed in his work. Institutions that foiled or distorted the market process had, in Simon’s view, the dual effect of reducing living standards and amplifying environmental problems. I show, using the case of climate change, that Simon’s forgotten nuances can help explain modern environmental problems such as climate change. Most notably, it allows a subtle shift from claiming that climate change is anthropogenic (i.e. man-made) to claiming that climate change is “statogenic” (i.e. government-made). This emphasis on government-made pollution can be extended to numerous environmental problems.

Suggested Citation

  • Vincent Geloso, 2022. "Statogenic climate change? Julian Simon and Institutions," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(3), pages 343-358, September.
    • Handle: RePEc:kap:revaec:v:35:y:2022:i:3:d:10.1007_s11138-022-00581-0
    DOI: 10.1007/s11138-022-00581-0
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    1. Peter Jacobsen & Louis Rouanet, 2022. "The ultimate resource after 40: A special issue against the grain," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(3), pages 275-282, September.

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