The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources

The document analyzes the relationship between the demand for environmental quality, government legislation, and energy transitions. Using five historical British case studies—ranging from the 17th century to the late 20th century—it argues that while markets can drive transitions under specific conditions, effective shifts to low-polluting energy sources typically require strong, sustained public demand and creative pressure groups to ensure legislation is introduced, enforced, and maintained. The author concludes that the transition to a low-carbon economy will likely require similar conditions, as current demand for climate stability may not yet be powerful enough to overcome economic counter-lobbying and political reluctance.

• The author proposes a framework where the demand for environmental quality is driven by marginal benefits of abatement, which can shift based on rising income, increased awareness, and more democratic political systems.
• Market failures in environmental quality often occur because the costs of pollution are borne by society rather than the individual consumer, leading to a socially insufficient level of environmental quality.
• Historical evidence from Victorian Britain shows that early environmental legislation was often ineffective due to low fines, inconsistent enforcement, and the influence of industrial lobbies on the drafting and implementation of laws.
• In the late 19th century, air pollution in London was partially reduced not through fuel switching or efficiency, but through 'adaptation' in the form of suburbanisation, which diluted pollution concentrations by spreading the population.
• The 'Big Smog' of 1952 in London, which caused between 3,000 and 12,000 deaths, acted as a catalyst for the Clean Air Act of 1956 by creating a strong and shocking demand for air quality improvements.
• The Clean Air Act of 1956 successfully drove a transition to low-polluting energy sources in 'black' areas by banning smoke-emitting fuels and requiring domestic fire conversions, though progress varied by borough wealth and mortality rates.
• The transition from coal to natural gas in the UK electricity sector during the 1980s and 1990s (the 'Dash for Gas') was driven by international pressure regarding acid rain and the economic incentives of privatization and CCGT plants.
• The author argues that for a transition to a low-carbon economy to succeed, it must be spearheaded by strong pressure groups to overcome the fear of economic costs and the tendency of politicians to avoid angering voters.

APA

Fouquet, R. (2011). The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources. Basque Centre for Climate Change. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20111115041230967491046.pdf

Chicago

Fouquet, Roger. The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources. Basque Centre for Climate Change, 2011. https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20111115041230967491046.pdf.

Wikipedia

{{cite report |last1=Fouquet |first1=Roger |title=The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources |publisher=Basque Centre for Climate Change |date=November 2011 |url=https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20111115041230967491046.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{fouquet2011demand, author = {Fouquet, Roger}, title = {{The Demand for Environmental Quality in Driving Transitions to Low Polluting Energy Sources}}, institution = {Basque Centre for Climate Change}, year = {2011}, month = nov, url = {https://www.bc3research.org/h6T8Uy8Nm4gFs0O/20111115041230967491046.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }