Wednesday, January 23, 2008

Self Subsidized Renewables

In order to effectively use resources and energies, there must be systematic reorganization of our production techniques, and distribution systems. To reduce waste, and to promote innovations, I propose that production methods in manufacturing be limited in scope and variety, slightly, in order to allocate more resources, monies and energies towards alternative energy such as solar power.

Examples of this can range from manufacturing of luxury goods, to basic manufacture of disposable goods. For this purpose, I will use televisions. Policy would be implemented such that, instead of purchasing new and unnecessary goods (those which include no increased efficiency in energy) which are of many varieties, supposedly to compete for consumer's tastes
there should instead be fewer options, of more reasonable and efficient style, where the cost and resources saved would be re-invested into something with long term benefits, such as the solar energy example.

In manufacturing there is inherent waste, and this waste is something which also has held back the production of solar energies to some extent, until this point in time. In order to effectively implement this system, there must be consolidation and evaluation of resources with a broader range and more thorough understanding. There must be focus on internalizing hidden costs, such as roads which must be maintained to carry goods, and the cost of transportation for materials. The public throws substantial amounts of money into novelty and disposable type petroleum based, and otherwise inefficient goods. The energies to make plastic toys, and many computer games, phones, decorative items and other such goods, are often compounded not only by the elements of waste in manufacture and purposeful obsolescence, but also by the cost of distribution, sending specialty products; transport fuels, real cost of fuel, should be used in the sense of all the indirect subsidies.

Because of substituting not only the purchase of unnecessary goods, but also discouraging their manufacture (avenue could be free market) and using those saved energies towards creating solar energy, we may be capable of conserving money and resources, and in the process get return on that change, in the form of more renewable energy, and efficient manufacturing systems.

In summary, what is proposed is a novel concept of subsidizing currently less economic but ecologically desirable renewable technologies, via a substitution of value from "wasteful products" to offset the higher costs of the renewable technology. This could be implemented by taxes on such "wasteful products" , and also by raising taxes on current energy sources to internalize hidden costs currently not accounted for. The subsidization of the renewable technology will stimulate new investment in renewable technologies and will create numerous new businesses and jobs for society.

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E&R.J Gulotty

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