Monday, October 28, 2013

Red or Black: the economic consequences of the green tax

The United Kingdom's "green tax" is discussed in a question and answer session conducted by the BBC with the news agency's economic analyst Lewis Goodall. In the Q&A session, Goodall discusses the economic implications of the relatively recent new tax.
A key point that Goodall brings up is that the tax was set fourth in order to encourage the use of environmentally friendly energy sources. This shows that the English government is attempting to reduce dependency on sources of energy that destroy the environment.
The other side of the argument, the one that the interviewee takes, is that there are severe economic consequences to the tax. Goodall states that even though the taxes may reduce environmental damage and money spent on fossil fuels will virtually nonexistent in the future, the amount of money spent on electricity will be significantly higher and that will bring up the total energy bill. As a result, businesses and people alike will consume less energy which may have even more drastic effect on the economic growth in the country.

To read more about the issue click here

Sunday, October 27, 2013

Problems with solving problems

China has been known to disregard all accusations of destroying their environment, but will they be changing once they finally realize that they are destroying themselves in the process of modernization? Tom Whipple from thinks they will in his article entitled: "The Peak Oil Crisis: China at a Turning Point." The article states that the country cannot keep growing (economically) at the percentage that they are growing at and not destroy their own environment and themselves. Whipple states that the Chinese government is slowly beginning to recognize the presence of an enormous problem, but will most likely not be able to take any actions against it.
Another issue that the author brings up is that of "shadow banking" in China. Shadow banking is when officials create new projects, the exact funds for which are hidden away from anyone to see. This type of corruption in China has resulted in many losses of money that could have been spent otherwise. Not only that, but even if the Chinese government would have wanted to take a strong stance against polluting their own environment, their efforts would be significantly weaker than if they tried to handle the problem without shadow banking.

To view the article click here