Renewable Energy: Stabilising Money and Society

Abstract

This chapter explains how the generation of renewable energy and the creation of sustainable communities can guide capitalism to survive climate change on a self-reinforcing basis. The process depends upon introducing an ecological “use it or lose it” rule for owning money, land, buildings and enterprises. Ecological money has a negative interest rate with its value tethered to an index automatically established by the Internet of Things in each bioregion of the globe. The index increases the purchasing power of money according to how efficiently Kilowatt-hours of electricity can be generated from benign renewable resources and the extent that the region is reliant on such sources. The index determines the relative value of Sustainable Energy Dollars (SEDs=$Z) in each bioregion to creates market forces to distribute resources, including humans, to where they may best be sustained in perpetuity. Ways of extending ecological ownership to land, buildings and corporations are described to create a more efficient and equitable form of capitalism. Ecological capitalism facilitates either a de-growth economy as may be needed or a steady state economy. $Z facilitates individual wellbeing to increase even if consumption of non-renewable resources is reduced or eliminated.

Keywords: De-growth, Renewable energy, Population distribution, Negative interest, Tethered currencies

JEL Classification: A13, B41, C43, D31, D63, D85, E31, E42, E52, F55, F64, G28, G38, H11, H24, I31, J11, J61, K34, L16