One of the biggest issues that is being talked about a lot is environment. We know what we have to do to prevent from climate change, we know how to reduce the carbon dioxide. What we don't know is how to reduce the carbon dioxide and still keep the economy running as normal. The more the production then higher the carbon dioxide. If we reduce the production then companies will not be able to earn money and when they can't earn money then more people will be out of work and when they are out of work then there will be increase in unemployment rate and then people will not have enough money to spend and when people don't spend then there will be a drop in sale and all the other companies will start firing people and which will have an increase in unemployment rate even more. The biggest question is how to increase or maintain the production and still reduce the carbon dioxide?
Green energy and economy
Green energy have been known for long time as the main solution for saving the environment by reducing carbon dioxide. Green energy have been growing very fast in many countries. It is still one the most promising way in reducing the carbon dioxide. There are so many countries that are still underdeveloped. Some of the underdeveloped such as in Africa, they have strong sun which can be very good way to get solar energy, the improvement of solar energy in these countries can help these countries generate income. It will be very difficult to change the infrastructure of developed countries, but it is possible to use solar energy to start developing the economy of the underdeveloped countries. In an economy there is credit constraint and lender will never want to borrow money if they know that a country does not have or use their resources to be able to pay back. Underdeveloped countries should make a really good plan to allow foreign companies to invest in their country in doing business on green energy and also food production.
Economic plan for underdeveloped country
A plan that I could give to underdeveloped countries; Lets have the country that we want to develop and we can name this country as country A, and lets say that this country has bordering countries of country B and C, and lets say these countries are in Africa, lets also assume that there is developed country E and F. Country A should implement few policies to attract foreign investment, usually foreign companies wants to invest in a country that they see a potential profit in short period of time. Country A should not have any tax on foreign companies in doing business for minimum of 5 years, this means that they should not even have tax on export. The foreign companies should not even pay for renting the land for minimum of 5 years and even after 5 years they should pay very little tax, but they should have only one term that these foreign companies have to do and that is producing food. There are some developed countries that have very good knowledge of producing food and food is the most important thing in every living things life. Another thing this country A should also do is have enough money printed but not fully used to control the inflation rate. Country A should also implement that all the salaries and businesses with in country A should be conducted in local currency. When companies from country E and F wants to invest in country A, they should be fully welcomed and protect. The companies will bring their foreign money and exchange with currency of country A to conduct their business, they will bring their experts and technologies to do business in country A. When these companies bring their money and exchange to the currency of country A, then country A automatically makes money by selling their currency. The companies will start employing the people and people will start having jobs making living. Energy is one of the most important contribution to economic growth. If country A can create opportunities for foreign companies to invest in solar energy by using huge amount of land in getting energy from sun and exporting it to neighboring countries such as B and C, these companies might have some interest in investing. If there are a lot of companies that are interested in investing in country A and country A can make money through just exchanging their local currency to foreign currency. When country A is developing then government can also encourage the local people to start doing business and supporting them financially by offering low interest rate.
All other countries can benefit when the economy of country A is growing through green energy and production of food. It will also be another source of income for developed countries. When underdeveloped countries run their economy on green energy, it will balance the world and it will be a huge step in creating green economy.