Notices
Results 1 to 2 of 2

Thread: Polution and the Economy

  1. #1 Polution and the Economy 
    New Member
    Join Date
    Jan 2009
    Posts
    2
    How directly tied are consumerism and energy usage? If I drive 50% less, I buy 50% less fuel. If I buy a fluorescent light bulb, I pay 20% more once to GE, but I steadily pay 50% less to my utility company. If I reuse my old clothes, I don't buy new ones.

    Isn't there a reduction in production and consumerism when environmental policies are enacted? Wouldn't successful and effective implementation of 'green laws' incite an economic crash that would put last year's crash to shame?

    Is it fair to say that a 10% reduction of energy usage by the average American would result in a 10% reduction in purchasing? I'm not an economist (is anybody?), so I don't know the correct terms; Would that essentially result in a 10% loss in GDP?

    If we need a 50% reduction in energy usage world-wide to sustain our lifestyles, can the market survive with the associated reduction in purchasing?

    Can the economy even survive a steady 2% reduction per year in energy usage?

    What happens if there is 2% less consumerism a year? How much less consumerism is there during a recession?


    Reply With Quote  
     

  2.  
     

  3. #2 Re: Polution and the Economy 
    Forum Freshman
    Join Date
    Jan 2009
    Posts
    7
    Quote Originally Posted by TuiHayes
    How directly tied are consumerism and energy usage? If I drive 50% less, I buy 50% less fuel. If I buy a fluorescent light bulb, I pay 20% more once to GE, but I steadily pay 50% less to my utility company. If I reuse my old clothes, I don't buy new ones.
    You are only allowing for one side of the economic equilibrium. If on average, people bought 50% less fuel, then the fuel company would raise prices 50%, if people bought energy efficient bulbs, their price would rise, and so would the utility bill to cover the reduced usage.

    Quote Originally Posted by TuiHayes
    Is it fair to say that a 10% reduction of energy usage by the average American would result in a 10% reduction in purchasing? I'm not an economist (is anybody?), so I don't know the correct terms; Would that essentially result in a 10% loss in GDP?
    If instead of spending or saving it, you stuck it under the bed, then yes. However, if the USA is anything like Australia, then you can rely on your citizens to spend the money somehow . Even if you put it in the bank, there would not be a GDP drop, as the bank doesn't just hold your cash indefinitely, they use it. When you deposit your money into the bank, it lends that money to someone else, who might use it to buy a home, start a company, or more likely, spend .


    Reply With Quote  
     

Bookmarks
Bookmarks
Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •