Posts Tagged ‘economy’
We know the hazardous consequences if we don’t follow a green agenda. From rising temperatures, the disappearing polar ice caps, the spike in extreme weather conditions, and the cause of extinction of certain species of animals. We see this in the news, from Hurricane Katrina, the disasters in Japan, Indonesia, and various other places. So the government pulls in a green government initiative that pushes products that are not as deleterious to the environment, lower emissions, and reduce a carbon footprint. But how does this affect the bottom line? How are a business effected by the greener initiative?
- Global Economy –
Acclaimed New York Times Journalist, Thomas L. Friedman argues that “going green is a national security imperative and that green is the new red, white, and blue”. Friedman states that clean power will be a source of power in the world and that the country that takes the lead in clean power and clean tech is going to be an economic and strategic leader of this century. The nation that takes the lad in that industry will generate innovation, competitiveness, and breakthroughs to help the world.
- Job Creation –
Environment friendly products and services are still a relatively new area of economic development. Since going green will place more emphasis on becoming more ecologically aware in such industries as transport, manufacturing, and energy services; and as greener methods of energy and production are introduced and eventually implemented, there will be a need for qualified professionals creating more jobs.
- Loss of Traditional Jobs and Industries
Critics of the green movement argue that going green will result in the traditional energy industries, namely gas and oil. Yet proponents of the green movement argue that in the long term the role of the oil and gas industry will become less economically relevant as we become more dependent on renewable energy sources.
- Expensive, backwards and slow cost efficiency
Critics also cite the cost to the average family of going green in an already struggling economy. For example, even though adding solar panels may decrease the carbon footprint, the average family cannot afford such installations. The payback for doing so is also slow, despite the government rebates and financial incentives to purchase one. On average, the system pays for itself in average of 14 years. Another example is electric cars, which also has a high upfront cost and slow payback.
- Role of the markets
Companies may start to figure out what their total carbon emissions are across the board in order to align properly with government polices and tax breaks. Shareholders, governments, and business partners will be more and more interested in this to see if they increase efficiency
