Is the idea of a central government essentially bad?
My answer is "yes", because of the items you listed above and my belief that those are all false hopes. However, I'm not a utilitarian, so I would still be anti-state even if those hopes could be realized.
You raised a good question though, that I don't know the answer to, about whether the incentives are better for a centralized state or decentralized localities wrt pollution. Here's the tension I see:
  • A centralized state is easier and more valuable for industry to corrupt.
  • Decentralized localities can more easily shift pollution costs onto their neighbors.
I think there's better potential for localities to cooperate in a repeated game type of environment, but there could also be lots of value in being the one defector.
this territory is moderated
The environment is inherently a global/singular/central problem, because there's only one planet. I think that's why it's natural that people seek centralised solution.
It remains to be seen if we can:
  • align incentives in government frameworks such that corruption by corporations is not possible,
  • develop a decentralised solution with a global and cohesive reach - this may, honestly, require a Bitcoin-level invention to be unveiled.
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