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However, the price mechanism does not always work—for example, when there are no property rights, the market mechanism cannot operate. This is the case of climate change—when we burn oil, we also use the assimilative capacity of the ecosystem to deal with carbon dioxide, which is scarce, but has no owner. Therefore, the real problem is not scarcity of oil but the stability of the atmosphere at a carbon content that keeps the climate in a state that is tolerable for humans (Watson 2018).

On Climate Change: Fiscal Measures When Climate Negotiations are not Feasible