Coercing finance to fund decarbonization: the democratic case for coercion in funding the green transformation

Abstract

Insofar as governments want to secure a democratic green transition, attention must be paid not only to which policy approach will be effective, quick, or cheap but also to which policy approach preserves the power of citizens to coerce private agents through public policy. I defend this claim using the work of Scott Anderson on coercion. While much democratic theory focuses on the necessary limits to a state’s coercive powers, I suggest we must also consider the need to preserve those powers over time. I argue that the state has good reason to engage in coercing private finance to fund the green transition. If it doesn’t, a pattern of nudging or attracting investment will bolster private financial agents’ power and in so doing, undermine the state’s coercive power that is foundational to a healthy democracy.