The Case For Markets
28 April 2010
By Graham Shuttleworth
Though some believe that markets are unable to rise to the challenge of meeting the UK government’s environmental and renewable objects, this article from New Power 15 by NERA Director Graham Shuttleworth maintains that markets are still the right mechanism to achieve the government's targets efficiently and at the lowest cost; the real problem is the strategy chosen for achieving those targets. In the article, Mr. Shuttleworth argues that markets are coping fine but that the government has chosen to meet its targets with expensive and risky investments. That strategy might have appealed when the economy was booming and finance was plentiful, but those conditions no longer hold. He finds that overriding market outcomes to pursue this strategy will less efficient and more expensive than making the most of what markets have to offer.
