2. Adapt and Be Adept: Market Responses to Climate Change edited by Terry Anderson, champions market-based adaptation to climate change over top-down, incentivized approaches such as carbon taxes or

2.  Adapt and Be Adept: Market Responses to Climate Change edited by Terry Anderson, champions market-based adaptation to climate change over top-down, incentivized approaches such as carbon taxes or "climate clubs". The book uses Pascal's Wager to frame its argument: regardless of whether climate change is definitively proven, it is prudent to adapt. A central critique in the book is directed at the economic impracticality of relying solely on renewable energy. Mark Mills' chapter highlights that historically, the dominance of wood and the search for food kept societies from specializing, a limitation overcome by fossil fuels. Current statistics show renewables account for only 2% of global and 3% of US electricity generation. The cost comparison is stark: $1 million worth of shale gas produces 300 million kilowatts of power, while the same value in renewables yields only 50 kilowatts. Furthermore, storing renewable energy with batteries is prohibitively expensive (costing $200 per equivalent unit compared to $1 for hydrocarbons) and limited by the availability and environmental impact of mining critical resources like lithium. The book dismisses goals like the Biden administration's aim for 100% renewable electricity by 2035 as being in "total denial" of these physical and economic limits. The book also critiques government-led "incentivized" policies, like carbon taxes or emissions trading systems, as susceptible to political distortion and protectionist agendas. These policies, derived from "blackboard economics," fail to account for the political reality where powerful interests at the negotiating table ensure they are not "on the menu" for taxation. The failure of Europe's emissions trading system, which was diluted by granting credits to new energy producers, serves as an example of such distortion destroying market incentives. Instead, the book advocates for improving "price discovery" through financial and risk markets as the most effective means of adaptation. These markets, like property and insurance, naturally adjust prices to reflect changing risks, such as declining property values in areas prone to storm surges. However, government subsidies for programs like flood or crop insurance distort these signals, leading to maladaptive behavior. The crucial role of government, according to the authors, is not to dictate energy policy or impose taxes, but to provide accurate, transparent, and timely data on climate variables like rainfall and temperature, enabling markets to make informed decisions. The experiences of Alaskan Native Villages (ANV) illustrate the importance of local control and human ingenuity in adaptation, which external regulations have often hindered. The book emphasizes the need for pragmatism in addressing climate change, echoing Bjorn Lomborg's argument for sensible investments in areas like public health (e.g., malaria control) that yield greater returns than attempts to halt climate change altogether. Ultimately, Adapt and Be Adept posits that empowering individuals and communities with accurate information and minimal market distortion will unleash the human capacity to adapt and prosper in a changing climate. 1873 TASMMAAN