We economists had climate change all worked out. We recognised carbon emissions were a negative externality, and endlessly econo-splained what negative externality meant. We envisioned governments using carbon prices to make companies bear the cost of their emissions, preferably harmonising prices into a multilateral global one. We scoffed at inefficient state subsidies and regulations compared to market-based mechanisms.
We were right in theory; we always are. But we didn’t necessarily think the trading bloc that followed our prescription would end up facing fierce accusations of protectionism. We didn’t foresee the role of state-backed exports from a geoeconomic superpower. We certainly didn’t predict a helping hand from a ridiculous war started by a climate change denier.