Showing posts from June, 2011

Incentivization, Externality Pricing and Coasian Economics

Debate over the method to tackle environmental issues has been under debate since the eighteenth century, when Adam Smith came out with the Bible of Capitalism "The Wealth of Nations" whereby he argued an absolute free hand to markets with the firm belief that the markets will find the solution to every problem. This can be argued to be a novel position with respect to environmental issues, as till then laws were passed in England for curbing pollution (or at least the visual aspects of it). Though Marx and Engels did believe in the absolute control of the State, a middle path alternative to incentives and State control really turned up in the nineteen twenties, with A.L. Pigou coming out with arguably the Socialis't Holy Book, "The Economics of Welfare". He argued consistently for both aspects, saying that while it is okay for enterprises to make profits, to tackle problems arising due to industrial activities, profits must be taxed and the monies turned around

What Should be India's Energy Policy?

What should India's energy policy look like? There has been endless debate and countless number of posturings people on every corner of this quadrilateral have adopted. However, we all fail to miss the woods for the trees. History is a great teacher, and we should certainly look back at world history to look at the curious case of Denmark to understand where it succeeded while others failed. I remember sitting in class when Mr. Benjamin Sovacool was passionately discussing Denmark's conscious shift towards renewable energy that started way back in 1973 after the oil shock caught them with their pants down. I confess to not having thought too much of it then. Since then, however, a lot of water has flown under the bridge, and looking at things as they stand now, Mr. Sovacool stands vindicated. One should look at the Denmark model of energy self reliance and how they consciously moved their national grid from being dependent on fossil fuels towards being one dominated by renewabl

I am a Fool

I am a fool for believing that people should care about each other. Truth is, we always were a selfish lot of creatures, and will always be. Helping each other is of no use, as we all look for ways to benefit from each other and go our separate ways. Being an idiot to believe that people can be good to each other, can come forward to help each other is just loads of bullshit.