[P2P-F] Fwd: Towards a Caring and Green Economy

[Michel Bauwens]

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From: Other News <news at other-net.info>
Date: Tue, Jan 22, 2019 at 8:28 PM
Subject: Towards a Caring and Green Economy
To: <michel at p2pfoundation.net>



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Towards a Caring and Green Economy
*By William Mebane *

January 22, 2019 - The cause of the government shutdown, with hardships for
federal workers and reduced services for all, originates from afar. It is
not just the personal and political conflicts between Trump and the
Democrats. The situation is the result of decreasing solidarity and
inclusiveness over the decades.
We are all too familiar with the multiple divisions of America: between
rural and urban, rich and poor, young and old, male and female, white and
colored, heterosexuals and homosexuals, left-right politics, pro-life and
pro-choice, and others. Over the years these divisions have become more
intense and above all less tolerant of each other. In addition the middle
class has become to feel poor with low growth income over many years. In
the last 36 years from 1979 to 2015 the percent change in income after
taxes and transfers is only 46% (1.05%/year on a compound basis), for the
middle 60%; instead it is 242% for the top 1% and 78% for the next 19%.
(Stone, C., et al, 2018) One of the key identities of being American, the
possibility of upward social mobility, has been weakened for many. Stagnant
middle class income for three decades, while the upper one percent gets
enormous gains, tends to deteriorate solidarity even more.
These sharp divisions make democracy dysfunctional. Not only does it make
political consensus difficult, as we are experiencing, “the evaporation of
solidarity turns the characteristics of democracy upside down.
Representation becomes polarizing as political leaders fight to privilege
specific groups within existing institutions. Mobilization becomes
intimidating. Institutional checks and balances become leverage points for
blocking minorities for extract concessions. Voters hold their officials to
account for their pursuit of ever-nearer definitions of selfinterest.
Predictability gives way to uncertainty as politics oscillates between
pluralist stagnation and populist outburst. Efforts to reform institutions
quickly collapse into zero sum distributive political games. Democracy
without solidarity is dysfunctional because its participants no longer view
their institutions as representative, equitable, accountable, predictable
or even open to reform.” (Jones, E., Matthijs, M. 2017).
Is this the situation we want? Is it a good long-term environment for
business? Leading business leaders have begun to be concerned, as chief
executives received a new missive from Larry Fink, investment manager
overseeing $6 trillion at Blackrock that will stimulate debate. “Businesses
cannot merely have a purpose. They must be leaders in a divided world.
Stakeholders are pushing companies to wade into sensitive social and
political issues — especially as they see governments failing to do so
effectively,” he wrote in his new letter, which was obtained from a
recipient (Sorkin, A. R., 2019).
 We need policies that increase our solidarity, not exacerbate it.
Certainly these trends cannot be reversed easily, and it will take years to
recover, as it took years to destroy; but if we do not try, matters will
get worse. Political theory suggests “the process continues until new
social bonds are formed or institutions are modified for the lower social
cohesion by a retreat from the public sphere, decentralization, or
succession.” (Jones, E., Matthijs, M. 2017). None of these institutional
alternatives appear desirable or appropriate in our global and electronic
age. America needs to recapture its solidarity.
One opportunity could be found in a Green New Deal. A leading economist has
suggested the green plan should be generous with the workers in coal mining
and other transition industries having a form of workers’ aid (Krugman,
2018). Last week a highly distinguished group of economists, including the
last four chairmen of the Federal Reserve, 15 former leaders of the White
House Council of Economic Advisors and 27 Nobel laureates signed a letter
recommending “a gradually rising carbon tax that would be distributed to
consumers as a ‘carbon dividend.’ “ (Irwin, N., 2019) Particular attention
is to be paid to the energy poor who have energy inefficient homes and
require financial assistance to improve.
The good news is that energy efficiency and solar energy, the core of any
green program, are often decentralized and can be designed to reach almost
everyone, regardless of race, location, religion, political party, and to a
certain extent even income.
One of the most popular policies in Italy, also practiced in the States, is
tax deduction for energy efficiency and solar investments in homes (ENEA,
2018). There is a history in the US of successfully financing these
investments through the utility companies, with low or no front-end costs.
State and local activities in energy savings are numerous including energy
audits and technical assistance, utility assistance programs, financial
assistance and rebates, on-bill and off-bill financing, and new
construction (Institute for Local Government, 2013).
The new super efficient homes and buildings, Near Zero Energy Buildings or
NZEBs that optimize energy savings and solar energy production are best
built in open or rural areas where there is more space and freedom of
design.
This all calls for a decentralized grid structure to connect the local home
and commercial producers with the electricity grid. This implies more jobs
near these energy producers.
Product efficiency standards have been very effective in the US and can
continue to be so. We forget that the minimum efficiency standards for
household appliances such as refrigerators, washers, heaters, air
conditioners and other devices have decreased unit consumption by more than
50% over the last decades. The efficiency labeling system helped to make
the more efficient
models very successful. The US was also a leader in promoting these energy
efficiency labels and standards around the globe. Careful and repeated
negotiation with industry produced these results. (US Energy Information
Administration, 2017)
It is essential that this continues for the automobile industry and that
the existing planned efficiency is not rolled back due to the influence of
the petroleum industry (Tabuchi, H., 2018). Households need to have the
opportunity to purchase efficient vehicles.
A significant part of the management of these policies can be done at a
state and local level as exemplified by the work of California and other
states. We do not need to create big government; we need to transfer those
successful and more advanced experiences and management skills to the
states and cities where they are required. This is the way Italy, with a
per capita energy consumption less than one-half of the US, began in the
1980’s (Italian law 302, 1982) Certainly a gradual carbon tax and dividend
system will make matters easier; however the work of energy audits,
technical assistance, local construction programs, information campaigns,
investment financing, coordination with the utilities, are activities that
can be assisted and managed at the state and local levels. The federal
government would be involved in the international and countrywide issues,
such as management of the carbon tax-dividend, using existing government
structures.
The project might be thought of as a solidarity and infrastructure program
extending into our homes. And maybe this Caring and Green New Deal could
get bi-partisan support.
The writer is former Director of Energy Efficiency Department at ENEA, the
 Italian National Agency for New Technologies, Energy and Sustainable
Economic Development

*References *

   - *ENEA, 2018, Annual Report on Energy Efficiency.*
   - *Institute for Local Government, January 2013, see
   https://www.cailg.org/sustainability-best-practice-area/energy-efficiency-conservation
   <https://www.cailg.org/sustainability-best-practice-area/energy-efficiency-conservation>*
   - *Italian Law 308, 29 May 1982, n. 308 - Gazzetta Ufficiale*
   - *Irwin, N., January 19-20, New York Times International Edition*
   - *Jones, E., Matthijs, M., 2017, Government and Opposition, Vol. 52,
   No.2, pp. 185-210*
   - *Krugman, Paul, December 31, 2018, New York Times,*
   - *Sorkin, A.R., January 17, 2019, New York Times*
   - *Stone, C., Trisi, D., Sherman, A., Taylor, R. December 11, 2018,
   Center for Budget and Policy Priorities, (Data from Congressional Budget
   Office)*
   - *Tabuchi, H., December 25-25, 2018, New York Times, “ U.S. Energy
   Information Administration, June 2017, Residential End Uses: Historical
   Efficiency Data and Incremental Installed Costs for Efficiency Upgrades.*



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