Cognitive Scaffold

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MENTAL MODEL · M4110

Tragedy of the Horizon

Tragedy of the Horizon
DecideHigh supportDecision Science
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Updated 2026-08-01

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INTRODUCTION

English translation pending.

CORE DEFINITION

A term popularized by Mark Carney in his speech as Governor of the Bank of England. The argument is that the catastrophic effects of climate change lie beyond the horizon of the actors making decisions today, and because the costs fall on successors while the benefits accrue now, no one in office has a strong incentive to act. It is the tragedy of the commons transposed from space to time: the shared resource is a livable climate, and the users are successive generations who cannot negotiate with each other. Remedies therefore have to discount future risk into present incentives.

SCAFFOLDING EFFECT

psychology

Reduce cognitive load

- Horizon audit: compare the disaster timeline against the tenure of whoever must act. - Risk discounting: price future damage into today's budgets, targets, and credit decisions. - Institutional anchoring: create bodies whose mandate outlives any single electoral cycle and cannot be reversed by the next administration.

anchor

Anchor fast decisions

The mechanism is a mismatch of timescales. Decision-makers are rewarded within their own tenure, while the payoff of prevention arrives decades later, so the expected value of acting is systematically discounted. Because the loss is borne by people with no seat at the table and the gain by people who are, markets and politics both drift toward delay. The failure is structural, not a matter of anyone's short-sightedness.

MINIMUM ACTION

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Source support: Explicit

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    en.wikipedia.orghttps://en.wikipedia.org/wiki/Mark_CarneyZH · Explicit
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