Investing in alternative energy resources such as solar energy, wind energy, biomass energy, hydro power energy, and waste energy could prove to be very advantageous to the global economy. There would be three kinds of effects. Direct effects are on-site jobs and income created as the result of the initial investment. Indirect effects are additional jobs and economic activity that could be created, involved in supplying goods and services. There are also induced effects, the economic activity that is generated by the spending of the wages acquired by the employees of the renewable energy companies.
First of all, in the United States alone, as many as 2 million jobs could possibly be created in two years, four times the amount of jobs created with the same investment in the oil industry because the alternative energy industry is labor intensive. Yearly consumption of oil barrels could be reduced by the millions worldwide, lessening dependence on international oil trade, especially on politically unstable countries. This helps to ensure the supply in the market and to avoid extreme price fluctuations that either consumers or producers would suffer from.
Statistics show that countries that embrace alternative and renewable energy resources by funding and supporting alternative energy companies such as France and Brazil have higher GDP per kilogram carbon produced. A reason for this is that renewable energy resources can be found more locally, thus helping local and national economies by use of local resources and job creation. Investment in renewable energy solutions and renewable energy resources would also generate billions and billions of tax revenue, and because it is a local industry, the money would circulate in the national economy.
Another thing that green investing has to offer the current global economy is on the issue of efficiency. Investing in companies who are further refining their engines or developing new cars that don't run on gasoline would help fund researches geared towards the efficiency of their said vehicles. And while people are concerned with the benefits this has to offer to the ailing environment, these investments with the purpose to help solve efficiency problems would lead to optimization of the market resources. For cars with effective gasoline-run engines, these cars would require less gasoline, hence there would be more supply per car.
One can really see then that green investing really does help the economy. By supporting renewable energy companies to help provide various environmental solutions from renewable energy resources, green investing helps to create more demand for labor, increase economic profits versus economic losses, and maximize the economy's resources to improve efficiency over all.
Shirlyn_Dee
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