I'm John Batsy.

And I'm speaking with great pleasure, with Terry Anderson, my colleague.

He's the Hoover Institution, but he's the editor of a new book, Adapt and Be Adept.

Market Responses to Climate Change.

Assume climate change.

What is to be done?

We've been discussing how carbon taxes incentivized from the top or carbon clubs incentivized from the top are not going to work very effectively. They're going to be imposed and therefore there will be other resistance or indifference or they'll fail because the prices

are not honestly discovered. They're obliged. Then again, the question of when you find the price,

when the consumers adapt to what is going on around them locally, regionally, nationally.

Can they do more than that? And I learned from a chapter that Terry

publishes by Bjorn Lomborg, the very well-known commentator. I read him all the time in the

Wall Street Journal op-ed page about climate change, about the changes that the earth is undergoing.

And I learned from him that for a long time, adaptation was,

I think the way he put it, Terry, was bad form. I don't understand that. Was it, was it

unaccepted because you were seen as denying climate change? Is that why? Well, exactly. And in fact,

Bjorn has been continually accused of being a climate denier.

You don't need to read more than a couple of sentences of anything he's written recently

to find that he's no longer. I think there was a time, along with many others, that people

were skeptical of just the extent to which climate was changing.

And Bjorn was one of them, as was I.

Now the data suggests it is changing.

And Bjorn then has said, well, if we're going to spend trillions of dollars,

...