> if there’s a true competitive free market, are consumers of petroleum products going to choose to pay a premium for ethically sourced petroleum?
If there's a true competitive free market, first, consumers won't even buy petroleum products unless those are the most cost effective for what they're doing. And in a true competitive free market, the huge infrastructure we have that gives a huge advantage to petroleum-based fuels might not even exist, certainly not in the form it currently exists, which is a product of constant government intervention and subsidies.
Second, in a true competitive free market, an oil company that contaminates thousands of miles of beaches with a spill can't get shielded from meaningful liability by courts that interpret the law to favor corporations, on the grounds that, after all, they were following the regulations, so it couldn't have been wilful mismanagement or intentional cutting of corners with disregard for safety, it must have been just an unlucky accident. (For example, look at the various lawsuits against Exxon after the Valdez spill and the rulings and long term outcome of those.) In our current regulatory environment, paying some fines now and then or having to defend a few lawsuits is just the cost of doing business. In a true competitive free market, such companies would be out of business, because they would have to literally make whole every person harmed by a spill, just like an ordinary person does when they commit a tort.
Thanks for spelling it out, I appreciate it. For what it’s worth, I agree that more accountability (maybe even to the point of piercing the corporate veil) is critical. But I’m not sure how to get that done without more regulation. Lawyers and accountants are so creative, and in a multinational environment have so many options, it’s hard for me to see how this sort of enforcement can happen without strong government intervention. But anyway, I appreciate you taking the time to share your perspective, thank you
If there's a true competitive free market, first, consumers won't even buy petroleum products unless those are the most cost effective for what they're doing. And in a true competitive free market, the huge infrastructure we have that gives a huge advantage to petroleum-based fuels might not even exist, certainly not in the form it currently exists, which is a product of constant government intervention and subsidies.
Second, in a true competitive free market, an oil company that contaminates thousands of miles of beaches with a spill can't get shielded from meaningful liability by courts that interpret the law to favor corporations, on the grounds that, after all, they were following the regulations, so it couldn't have been wilful mismanagement or intentional cutting of corners with disregard for safety, it must have been just an unlucky accident. (For example, look at the various lawsuits against Exxon after the Valdez spill and the rulings and long term outcome of those.) In our current regulatory environment, paying some fines now and then or having to defend a few lawsuits is just the cost of doing business. In a true competitive free market, such companies would be out of business, because they would have to literally make whole every person harmed by a spill, just like an ordinary person does when they commit a tort.