Without Economic Development There Is No Concern for Ecology

He believes that the only way to permanently solve the environmental problems caused by man's invasion on Earth is through the use of resource markets. He explains that experience has shown that the other option –namely, political control of resources in the hands of governments and interest groups—is a failure, and that notwithstanding the good intentions behind, the results are always a disaster for the environment that they mean to protect. These statements are the basis for the Free Market Environmentalism.

He then goes on to explain two basic principles that sustain his vision: a) wealth is good for the environment, and b) incentives do count. If a country is poor, concern for the ecology certainly will not be among the first priorities of the people. He believes that if people do not have a full stomach, clothes to wear, a roof above their heads, medical assistance and education, the concern for the environment will not be felt. Many studies have confirmed that until the income per capita does not reach around US$ 3,000 and US$ 3,500, the country cannot afford to even start to worry about environmental challenges. Not until then can the citizens say: now we can look into having clean water, lowering the levels of air pollution and solving the rest of the problems.

The second principle says that incentives are effective. This means that the preservation of the environment must also be profitable in order for it to be effective and permanent.

He concludes as follows: "Many countries have begun to reform social policies by introducing markets, and this works well. But the area that required much more work is the environmental area. Not until we can convince politicians that it is markets that work in order to have coffee, bread and environmental quality, can we say we have reached our zeal".