Green Technology: Another reason we need basic income

Green Technology: Another reason we need basic income

by | Aug 26, 2016 | Opinion

Safety is a crucial issue. Without a sense of security, we don’t think straight, we don’t connect as well, and we don’t align as well with our core values. If we are not secure, we don’t feel safe, and if we don’t feel safe, fear grows from within. And with that fear comes distrust, anxiety and stress. And all of those blur clear-sighted decisions.

Ultimately, there is no denying that security is a hot topic at the moment. With crime levels rising on a daily basis, there is a general sense of unease within society. That being said, it is important to remember that there are plenty of actions that you can take to improve your sense of security.

For example, if you are a home or business owner, then installing a security system is strongly recommended. Hidden cameras and alarms are both fantastic crime deterrents and can help you to feel safer in your home or at work. Above all, everyone deserves to feel in control, and security systems can provide peace of mind during times of crisis. To learn more about some of the most popular home security options out there, take a look at the Verisure website.

Anyway, within this short essay I aim to provide support for the following proposition: given a minimum level of safety, people will make better decisions. In particular, they will invest more in green technology for their businesses and homes, which is unaffordable to many at the moment.

Before going into any details, though, we should ask this question: what is it that people want, anyway? Do they want more holidays? iPhones? Well-paying jobs? Less crime? Better security? As it seems, at a deeper level, what they want most is none of that.

According to an international questionnaire, created and administered by the association Together, people want the following:

Economy

Guarantee of purchasing power and financial safety for all

Redistribution of wealth for greater equality

Promotion of exchanges and circulation of means without money

The end of rampant consumerism, especially when producers are suffering from underpaid work

The development of a deconcentrated and stable economic system

Use of technology for the well-being and comfort of all

Governance

Zero poverty, zero exclusion, and zero carbon

Affirmation and implementation of the principles of co-responsibility

Empowerment of all and development a relationship of trust, freedom, and equality, to remove laws, regulations and cameras that focus on the control of people

Encouraging and teaching co-responsibility

Supporting all people’s engagement in society, regardless of role

Democracy

Giving participatory and direct democracy a holistic place

Improving representative democracy and abolishing dictatorship

Bringing elected representatives closer to citizens

Developing an ethics of democracy

Learning co-construction of policy by involving different actors including crossing perspective, skills and abilities

Empowerment of policy makers, making sure that they keep the promises that they have made

Transparency in actions of the government

Firmness and impartiality in justice

Simplification of the administration and legislation, and improved logistical organization

Policies to support the population, particularly for providing access to essential needs; an enhanced social state.

The end of media trash-talk that enhances racism and insecurity

Environment

Changing our relationship with nature, plants and animals

Reducing population pressure

Ensuring a rapid energy transition. Using the information provided by a service like Builder And Engineer to help people make changes in their home to waste less energy such as opting for a newer, more efficient boiler.

Fight against waste

Fight against pollution

Production that is more natural and small-scale

Cleanliness in public places, thanks to co-responsibility

Space management

Maintaining and protecting biodiversity

Preserving and developing agricultural and food-production areas such as family or community gardens

Arranging space to make it user-friendly and to facilitate common life, multiculturalism, creativity and new ideas

Adapting public roads for all while reducing traffic and enhancing transportation safety

Making the city a pleasant common good

Time management

Increasing the time available to people and improving management of time

Increasing time available for the family

Promoting volunteering by enabling candidates to get community service and recognizing volunteer spaces

Society

Enhancement of opportunities to live together and learn about others

Eliminating and prohibiting all forms of discrimination and racism in all areas, including employment

Avoidance of all forms of violence, harassment and war, plus eradicate those related to physical integrity

Facilitate networking and communication of the organisations and individuals

Maintenance of ethical and respectful behaviour for the sake of democratic functioning

Changing behaviour to encourage living together and respecting each other

Development of a common culture, whatever our religion

Solidarity with excluded and/or vulnerable people so that all are made to feel accepted

Reception of migrants and refugees as well as the homeless

More care for the poor by taking an upstream strategy to combat poverty

More aid for the disabled, including children and those who are alone and poor

These results are derived from the application of a specific methodology, the Spiral Approach, which has been applied in over 20 countries, involving around 120,000 people1. While this might be a small sample of all humanity, it is big enough to be taken very seriously. If these results mean anything, I assume, it’s that people would prefer to invest more in technologies that would lower their environmental footprint on this planet–if only they could afford it. And affordability has indeed been a major issue in contemporary Portugal. As we can observe in Figure 1, people have been losing purchasing power consistently over the past few years, except for a tiny percentage of people. At the same time, as expected, inequality has also risen (Figure 2).

8.16 figure 1

Figure 1 – Personal income savings in Portugal, percent of GDP

Figure 2 – Income inequality in Portugal (quotient between the 20 percent richest and 20 percent poorest average income)

Figure 2 – Income inequality in Portugal (quotient between the 20 percent richest and 20 percent poorest average income)

This is, of course, also mirrored in the growing number of poor people living in Portugal (Figure 3). These people might get free lunches (yes, these apparently do exist) if they prove their poverty – that’s how it goes these days – but, needless to say, it’s much harder to get a solar panel or an electrical vehicle, for example, just for being poor. But if you’re interested in learning more about solar panels check out Sandbar Solar’s residential solar services. You might be surprised as to what you can learn from them about the ranges of services that are available. Solar panels can generate a lot of energy (which can then be sold) but if you want to learn more about this, check out Solar MN.

Figure 3 – Poverty risk rate in Portugal, percent (footnote 2)

Figure 3 – Poverty risk rate in Portugal, percent (footnote 2)

The question is: would they (or most of us, for that matter) actually buy these things, if they could afford it? Any direct response is, of course, mere speculation, since it’s impossible to run an experiment given the present mode of things. But we might take a look at what people who can afford greener technologies are actually doing with their money. Figure 4 and Figure 5 show a couple of trends in investment in electric vehicles and photovoltaic panels in recent years.

8.16 figure 4

Figure 4 – Solar and geothermal energy generation, in tonnes of oil equivalent (toe) in energy mix

Figure 5 – Number of electric vehicles sold in Portugal

Figure 5 – Number of electric vehicles sold in Portugal

A quick look at these charts clearly shows increasing trends in purchases of these items. In the case of photovoltaic panels, Figure 4 refers to energy output, but higher output is of course linked to increased solar panel installations. This has happened in the midst of the present day austerity-driven impoverishment of nations, of which the Portuguese society is a victim.

According to a 2012 inquiry / poll, housing and other property amount to 81 percent of all assets3 owned by the 25 percent poorest families, with motor vehicles accounting for 18 percent. This basically means these families own nothing else (or close to nothing). Meanwhile, the richest 10 percent of families own 71 percent of their assets in their own house and other property (30 percent in their own house), 25 percent in businesses and 2.2 percent in vehicles. It is also noteworthy that, according to the same inquiry / poll, 91 percent of all the richest 10 percent of families own vehicles and 20 percent own other valuables compared to 39 percent in vehicle ownership and 5 percent in other valuables for the 20 percent poorest families. These differences are also mirrored in the value structure of those assets: a typical rich family (from the top 10 percent) owns a median value of 17 300 € in motorized vehicles, while the poorest 20 percent own only a median value of 2000 €. In other valuables, the differences are even sharper, with the richest families owning a median of 17 500 €, while poorest own only 300 € (median). Finally, up to the 90 percent richest families, vehicles and other values stays at a median of 13 000 €, which is about 37 percent of the amount the richest 10 percent of families own in these items (median values).

What this means is that, apart from the 10 percent richest families, and maybe some of the 20 percent richest ones, no one can really afford to buy electric vehicles, which have an average cost at 33 400 € (with 7 year batteries), and photovoltaic panel systems (micro-scale systems start at 10 000 € per 4.6 kW package). Given this scenario, what could a basic income to give people the opportunity to purchase these low-carbon technologies and contribute to solve the climate crisis?

According to a basic income viability study for Portugal, a 435 €/month payment to every adult would generate income increases for everyone earning 1200 €/month or less, before taxes. However, that increase will only be truly significant (after taxes) for those earning nothing, or close to nothing. Of course, 435 €/month basic income will only allow for a person to care for basic needs, such as food and shelter–not electric cars or photovoltaic panels.

It would, however, mean more money in the hands of people who are nowadays consuming less than they ought to, given their basic needs. And this will lead to higher economic outputs, especially in local economies. That, in turn, will increase monetary circulation, and eventually enough accumulation that some families will be able to afford green technologies. Another possibility is that people will come together in condos, neighbour associations, cooperatives and such, and pool their basic incomes (or whatever extra amounts they can get, given the existence of basic income). This way, they can acquire this equipment through their shared resources and manage it cooperatively. Also, the prices of these products are getting lower. This is especially true for photovoltaic panels, the price of which has fallen as much as 75 percent since 2009, and is expected to continue falling. The forecast for electric vehicles prices is more uncertain; however, due to technological advancement and higher supply, it is expected that these prices will also drop in the next few years (Joana Balsa, 2013).

The relationship between basic income and increased purchases of low environmental impact technologies is not obvious, at least for the products discussed in this short analysis (photovoltaic panels and electric vehicles). However, I’ve hinted at some factors that may determine that rise, given the implementation of something like a basic income in Portugal. Of course options to reduce environmental impact is not limited to the purchasing of photovoltaic panels and electric vehicles. Many other possibilities are available, at much lower costs, such as replacing existing low efficient lamps for LED technology lamps, riding bicycles or even reducing the ingestion of meat (while eating more vegetables).

Notes:

1 – More information on the data gathering method and resulting platform can be obtained here (in French).

2 – percent of people living in poverty or in risk of poverty.

3 – Non-financial assets.

More information at:

In Portuguese:

Sónia Costa, Luísa Farinha, “Inquérito à situação financeira das famílias: metodologia e principais resultados [Inquiry into families financial situation: methodology and main results]“, Occasional paper 1, Banco de Portugal, 2012

Miguel Horta, “RBI financiado pelas pessoas [Basic income financed by the people]“, October 2015

NOCTULA, Consultores em ambiente, “Energias renováveis: a revolução do preço da energia solar [Renewable energies: the price revolution of solar energy]“, August 2015

Joana Balsa, “Avaliação do impacto da introdução de veículos elétricos na procura de combustíveis em Portugal [Impact evaluation of introducing electrical vehicles in the demand for fuels in Portugal]“, Masters Thesis, Coimbra University, September 2013

Fundação Manuel dos Santos, PORDATA – Base de dados Portugal Contemporâneo website

Sónia Peres Pinto, “Há cada vez mais carros elétricos em Portugal [Electric cars are increasing in Portugal]“, SOL Economia, May 19th 2016

Associação Utilizadores de veículos elétricos, “O Mercedes Plug-In C350e da Mercedes, foi o veículo elétrico mais vendido em junho de 2016 [Mercedes Plug-In C350e was the most sold eletric vehicle in June 2016]“, August 6th 2016

In English:

TOGETHER – territories of coresponsibility website

Statistics Portugal website

Why basic income can save the planet

Why basic income can save the planet

by | Mar 29, 2016 | Opinion

By Clive Lord

Almost everyone I know of who supports the Basic Income (BI) does so on the grounds of social justice. I agree of course, but for me less inequality is only the second most important of three reasons to support the Basic, or as we call it in Britain, the Citizen’s Income.

When I joined the embryonic PEOPLE, now the UK Green Party, in 1973, I listened as an enquirer to a spiel based on the threats to the global environment caused by indiscriminate economic growth, which had been exposed by the Massachusetts Institute of Technology report Limits to Growth in 1972. I agreed with every word, but I had a question:

“What is your social policy? You are proposing a deep recession. I agree it will be necessary, but every recession to date has caused widespread hardship. What will you do when desperate people start looting?”

The answer was: “If we have to, we shall shoot them in the street. Social breakdown is hardly the best way to alleviate poverty.”

It is all very well readers being as appalled as I was, because the basic premise was right. The speaker then challenged me:

“Do you have a better social policy in mind?”

I didn’t. I spent the journey home wrestling with my own question. Guess what I came up with. I discovered later that the Basic Income had already been invented several times, for different reasons, starting with Thomas Paine in 1798. But even now, 43 years later, limiting economic activity to the ability of the ecosphere to cope was not part of the “successful” Paris climate agreement in December 2015. It will fail without that. A Basic Income will allow a steady state economy to be acceptable to whole populations, and so become a policy option, but it will have to be world-wide.

It will be dismissed as “unaffordable” – this would only be true if the economy has collapsed beyond the ability to provide basic necessities for all, but if linked to ecological realities it will entail drastic redistribution. This brings us to the more common justification for a BI of reducing inequality, but if all the Basic Income does is allow the poor to spend money confiscated from the rich, the Paris agreement is doomed.

However, I am continually perplexed by the widespread failure to grasp the malevolence of means testing – taking benefits away as soon as the claimant has any other income.

The next few paragraphs refer to the UK but will apply anywhere means tested benefits are used. For the person losing a means tested benefit, the effect is identical to a massive marginal tax. The clearest demonstration of this can be found in an unexpected source: the 2009 report Dynamic Benefits: towards welfare that works, released by the Centre for Social Justice. The Centre was set up by Iain Duncan Smith, who has been Work and Pensions secretary in the UK Coalition, now Conservative government since 2010 – and has recently resigned in protest against announced cuts to disability benefits. Dynamic Benefits was the foundation for the government’s welfare ‘reform’ policies. Its key recommendation was the Universal Credit (UC), whereby on finding employment a claimant would retain 45% of their former benefits. The former Work and Pensions secretary reduced this to 35% on taking office. This means that the former claimant is faced with a tax rate equivalent of 65%. Bankers on the highest tax rate lose 45% of their income.

In Dynamic Benefits, there are several graphs showing benefit withdrawal rates as though they were taxes. In fact, the first part of the report, outlining the problem, is an excellent statement of the case for a Basic income. The UC is an emaciated BI which attempts to remove the work disincentive of means testing, but still penalises beneficiaries disproportionately vis-à-vis high-income earners.

While Iain Duncan Smith’s stated reason for resigning was cuts to disability benefits, I believe the real reason is the imminent scrapping of the UC. In four years since being announced, the UC has only reached 5% of the 4.5 million who should be eligible. The Department of Work and Pensions is claiming that the UC will be fully rolled out by May 2021. The track record of slippage to date makes that improbable. That the initiator of benefit sanctions, the bedroom tax, and Work Capability Assessments presents himself as the defender of the weak and vulnerable is sickening, but Dynamic Benefits remains a useful document for basic income debates.

But my third reason is much more fundamental. A Basic income can begin a shift to a totally new culture. Instead of haves vs have nots, or bosses vs workers , the new fault line will be those who want to preserve natural systems versus those who believe there will always be a technological answer. This will enable a low growth economy to protect the ecosphere.

Milton Friedman, an archetypal neo-liberal, was in favour of the Basic income. Market forces are a basic pillar of neo-liberalism, but instead of the current system whereby the strong can exploit the weak, persuasion will replace work compulsion. The would-be employee will have equal bargaining power with the boss. Needless to say, Employee Benefits such as healthcare cover will also need to be negotiable. Experiences in India and Namibia show that far from encouraging idleness, a BI facilitates entrepreneurship. But it will also allow people generally to heed eco-constraints, notably climate change, where competitive capitalism does not.

Anyone curious to know more, my Book, Citizens’ Income and Green Economics (2011) is available from the Green Economic Institute. My blog www.clivelord.wordpress.com which is more up to date, but clivelordinevitably less coherent, discusses the Tragedy of the Commons, population, the Greek crisis, migration and fracking.

We may yet save “Paris” (and the planet), and feed everyone. There is even something in it for the capitalists.

Clive Lord is a founding member of the British Green Party, a major contributor to the party’s first “Manifesto for a Sustainable Society” and a basic income advocate.