MARKET INNOVATION AND THE GLOBAL ENVIRONMENT

The traditional economic assumption that environmental concerns run counter to productivity and growth has come under fire. Recent evidence clearly points in a new direction. To date, markets have evolved some of the most innovative and useful solutions for global environmental problems. These developments now lend credence to the view that countries with the highest environmental standards will concomitantly attain the highest competitive advantage. Chichilnisky argues that market innovation can serve as a powerful tool of environmental policy.