Due to the increasing awareness of global warming, our society is becoming more concerned about their energy consumption. Over decades, the advance in technology made emerging green technologies more affordable, which increased their use by the industry. Economies of scale allows manufactures to produce these energy plants at lower costs, yet improving their learning curve resulting in a more efficient production. Not only that but governments are starting to encouraging entrepreneurs to invest towards such projects

It turns out that renewable energy not only preserves the environment but it also creates jobs (builders, technicians, tradesmen, and specialist employees), which has a positive effect on our global economy. The creation of blue-collar (in this context also known as green-collar) jobs will increase consumer spending on goods resulting in additional tax revenues for the state. The income from taxation can be used to either further attract investment in such technologies, or be injected back into the domestic economy improving its overall growth.

Several news sources started to deny this. They believe that green energy can lead to overall lower consumer spending. As we know green energy as of today is more expensive than the traditional sources. As a result, the society will have to higher pay the higher price for this, which could lead to reduced spending on regular goods. But then again, wouldn’t the decreased consumption of goods have a positive impact on our environment? The natural capital would be preserved and there would be a reduction in waste. Instead, the reduced spending in day to day goods would have to go into cleaner energy. Yet, it would lower the demand for products and result in lay-offs, due resource inefficiency (also known as dis-economies of scale). But, would the new green jobs substitute the previous ones to make up for the created unemployment?

This is something that many of us are wondering about. However, if we want to speed up the shift to the low carbon economy there must be a increase spending in R&D towards such projects. Sadly, due to the present economical situation the budget for such technology is rather small. Everyone is focusing on short-term results rather than long-term ones. This is of course a serious issue for today’s manager as he has to focus on how to maximize shareholder value. Many external investors wouldn’t understand or what to invest into projects which generate a lower return on investment. Therefore making change is an serious issue.

The current market situation is preventing development, making the green energy expensive and inefficient to use. The best way to build interest in new technology would be by evaluating prices of fossil fuels through high carbon taxation so that they are no longer as competitive. The taxation would go towards R&D of green energy. Yet, on the contrary side the consumers will have pay the price for this but again is it better to pay a lower price in the short-run and have this result in higher expenses in the future towards expenses concerning health, insurance, taxation? Sooner or later we will have to price for our actions, and for sure no one will be pleased with this.