Jan
28
Filed Under (Going Green) by Eco Friendly Advisor
going green
slicedbread16 asked:


Does going green affect inflation? if so, in what ways? Change for the better or for the worse?

CARMEN
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Comments

simplicitus on 29 January, 2009 at 12:03 am #

Are you concerned about the economy? about inflation? or do you equate the two?

Going green has no effect on inflation. And since central banks like a little bit of inflation (about 2%), even if it did affect inflation, the effect could be good or bad, depending on what the current level was.

Going green may have an effect on the economy and the effects may be different in the long term and in the short.

Since global warming and other pollution problems make cause major disruption of civilization and the economy, it is clear that going green can only help in the long term (of course, small steps may not make any difference at all).

Many people believe that going green will lead to a reduction in the standard of living in the short term.
Even the proponents of going green talk about the “trade off” between ecology and the economy:

But in the long term perspective this makes no sense. A different kind of economic thinking is needed:

Of course, there are “green” elements that are economically profitable (i.e. give a boost to the economy) even in the short term: energy conservation is the obvious one, especially with rising energy costs to help.
but they are of such obvious benefits that everyone touts them.