Green Economics from a Youth Perspective

By the Publication Team – Green Economics from a Youth Perspective

This publication has presented a diversity of ideas and incentives for a greener, more sustainable economy. Most of the articles have been critique towards the existing systems, case studies or have centred around a single issue. From the articles, some guidelines for future conversation on economy can be drawn.

Concerning the monetary system, we have established that the fractional reserve system, based inflationary fiat currency, is unsustainable. To restore balance to the economy, the monetary system itself needs to be balanced. New money creation and inflation should not be in the hands of commercial banks, but controlled by proper oversight. Money should be based on something concrete, not only on the juridical fiat. Gold standard seems like a logical alternative, but its problem is inflexibility. In the future, we need a more sustainable basis for money, which might be infrastructure, population or total production. A green alternative might be based even on the amount of nature conservation. Inflation-free money would be ideal and would eliminate the need for collection of interest. Loaning money in an interest-free system could work through insurances, for example.

Taxation is one of the strongest directing measures for the governments. Rethinking taxation and agreeing on EU wide taxation guidelines are needed in the wake of international crises. Modern taxation is based heavily on income tax, which has little or no guidance effects. Relaxing income tax and integrating capital gains taxes to the progressive taxation system are needed. The progression should be heavy enough to ensure fairness, but on the other hand too heavy progression curbs the incentive towards working. Nevertheless, we point out here that Greens do not believe in the current system of living for working (or rather, for producing). On the contrary, we advocate a system in which human livings can autonomously decide and manage their time (with a proportion for long life learning and leisure!) and a more adequate index to measure wealth than the GDP than accounts for the invisible work forces, health and happiness of the inhabitants rather than only in their productivity.

Basing taxation to environmental burden, non-renewable energy usage and consumption in general. Higher taxation to narcotics, candies, meat, luxury items and other products that are not basic needs would direct consumption away from material products. Services and cultural products could be taxed lightly to direct consumption towards the immaterial production.

Recycling rates of 95 to 99 % and completely renewable energy production are needed in quite a near future to avoid total climate and environmental crises. Homogenisation of farming has to be stopped and a greener agriculture, based on biodiversity, established. Agriculture and all industry in general should be brought to a carbon neutral state. Deforestation has to be stopped and renewal of the large forest areas, especially the rainforests has to be started. Paper pulp production has to be based on alternative plant sources, such as hemp. The by-products of all industrial production should be used innovatively, for example to produce agrofuels from the methane of the cattle and pulp by-products.

Ecological sustainable development requires environmental renewal and almost no usage of non-renewable resources. Sustainability is the only way the future generations, or indeed even our generation can ensure safe and liveable earth. Today’s youth are in a critical position, we are the generation that has to repair the damage caused by the previous generations.

When you grow tired of being a bystander in face of global injustice, take action. Think globally, act locally!

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