Have you noticed that since 2012 we are formally iin old capitalist countries living under green markets, green prices, codependent choice or codependent preference structure and so on; and people and goverment are talking about carbon taxing without linking it to the price structure of green markets; and therefore you can not see what the impact of carbon pricing will have on the demand side of green markets, especially on the poor and on the growing poverty gap who are more worried today about food and meeting basic needs....
Those promoting green markets, what is the price structure of the green market you are promoting?...undertanding that may mean undertanding the structure and policy implications of green markets in a systematic way....Otherwise it seems to me we are implementing policies such as carbon pricing or global warming friendly policies in general in front of a black hole....and we can make things worse than they are now if we create local and globals social crises that can bring down green markets. What is the price structure of green markets?
Dear Rodoula, thank you for your participation. My warm greetings
You did not answer the question on what is the price structure of green markets and keep the discussion within the scope of the question:
However, I would like to share these ideas:
a) green markets are corrected traditional markets to reflect environmental concerns. In other words traditional markets are/were distorted markets as they assumed environmental externality neutrality;
b) Therefore, traditional market vrs green market, they have a different price structure as they are different markets
c) green markets should be based on the theory of the environmentally friendly consumer/firm/economy while traditional markets are seen from the traditional theory of consumer/firm/economy and on this right now there is a paradigm shift knowledge gap created when we shifted in 2012 from traditional markets to green markets,
c) the two papers(2007 and 2013) you shared seem to be written from the traditional economy point of view and the environmenatl price sensitivity of traditional consumers/ifrms.
I think you will find the ideas in this paper interesting and you can use them as food for thoughts:
Have a niced day
What If Markets Have Always Been Distorted? Would It Then Be a Good Fix to Add Fair Trade Margins to Correct Distorted Agricultural Market Prices?.
https://www.researchgate.net/publication/281244562_What_If_Markets_Have_Always_Been_Distorted_Would_It_Then_Be_a_Good_Fix_to_Add_Fair_Trade_Margins_to_Correct_Distorted_Agricultural_Market_Prices
Article What If Markets Have Always Been Distorted? Would It Then Be...
I would tackle this question as a two stage analysis:
1. On a non-subsidised basis, portfolios of supplies that combine fossil fuel and renewables are simulated under volatile prices.
2. Carbon taxes are treated as costs of pollution (i.e. penalties) that are in effect a decision switching factor for adopting fossil fuel vs renewables.
That is, when there are no subsidies, the portfolio performance will depend on power prices, costs of supplies, and their respective volatilities. At different power prices, fossil fuel or renewables may yield better returns. Within a portfolio of mixed supplies, the interactions of costs between fossil fuels and renewables would provide embedded options of higher payoffs when power prices are high.
Carbon taxes has the effect of increasing power prices that increases the payoffs from renewables. I have addressed this in my paper published by the Journal of Applied Corporate Finance that you can download from my page.
Article Renewable Energy with Volatile Prices: Why NPV Fails to Tell...
Dear Ricardo, thank you for your comment.
1) your comment is not directly related to the question, what is the price structure of green markets?...We know what the price structure of traditional market is and we know that if we correct the traditional market to account for enviromental externalities we move to green markets....because of the need to correct this In 2012 there was formally a paradigm shift from the traditional market(pure growth model)to green markets(green growth model)....However, even today academics, global institutions, and polititians appear to be trying to deal with green markets with the thinking of the old traditional market...As you can see the answer to this question does not come easy....
2) I think the topic of your article is relevant as there is a need to find ways to shift from non-renewable to renewables and portafoliio invesments could be a way to promote changes in market behaviour, but we need to keep in mind:
a) today the priority is on running economies at the lowest pollution point possible, not on the need to close the renewable energy technology gap and transition from dirty economies to clean aconomies...
b) so making it green does not mean going clean; and therefore the future of renewable energy is not yet a serious issue in the minds of those running green growth;
c) if we were to see renewables as substitutes, not complements of non-renewables and investments and taxes were linked to this goal, the the power price due to renewables would be even stronger....
Have a nice day Ricardo.
You may find the following article insteresting:
Understanding the Road Towards the Current Dominant Non-Renewable Energy Use Based Economy: Using An Inversegram to Point Out a Step by Step Strategy Towards an Efficient Dominant Renewable Energy Use Based Economy
https://www.researchgate.net/publication/281230333_Understanding_the_Road_Towards_the_Current_Dominant_Non-Renewable_Energy_Use_Based_Economy_Using_An_Inversegram_to_Point_Out_a_Step_by_Step_Strategy_Towards_an_Efficient_Dominant_Renewable_Energy_Use_
Article Understanding the Road Towards the Current Dominant Non-Rene...
Sharing my most recent publications here as food for thoughts:
Adam Smith and Karl Marx Under the Sustainability Eye: Pointing Out and Comparing the Sustainability Gaps Behind these Two Great Simplification Failures
https://www.researchgate.net/publication/299885202_Adam_Smith_and_Karl_Marx_Under_the_Sustainability_Eye_Pointing_Out_and_Comparing_the_Sustainability_Gaps_Behind_these_Two_Great_Simplification_Failures
Understanding the Death and Paradigm Shift of Adam Smith’s model: Was Going Green the Only Option? If not, Is This Option the Most Sustainable One?
https://www.researchgate.net/publication/299882613_Understanding_the_Death_and_Paradigm_Shift_of_Adam_Smith%27s_model_Was_Going_Green_the_Only_Option_If_not_Is_This_Option_the_Most_Sustainable_One
The Unintended Consequences of Paradigm Death and Shift: Was the Arrow Impossibility Theorem Left Behind?
https://www.researchgate.net/publication/299879934_The_Unintended_Consequences_of_Paradigm_Death_and_Shift_Was_the_Arrow_Impossibility_Theorem_Left_Behind
Paradigm Evolution and Sustainability Thinking: Using a Sustainability Inversegram to State Paradigm Death and Shift Expectations under Win-Win and No Win-Win Situations
https://www.researchgate.net/publication/298353982_Paradigm_Evolution_and_Sustainability_Thinking_Using_a_Sustainability_Inversegram_to_State_Paradigm_Death_and_Shift_Expectations_under_Win-Win_and_No_Win-Win_Situations
Article Adam Smith and Karl Marx Under the Sustainability Eye: Point...
Article Understanding the Death and Paradigm Shift of Adam Smith’s m...
Article The Unintended Consequences of Paradigm Death and Shift: Was...
Data Paradigm Evolution and Sustainability Thinking: Using a Sust...
Dear Lucio
you are talking a very interesting matter which is impotent globally. Yes' Price structure of green markets differ from other markets. Mainly from the view points of pollution prevention and resource recovery strategy support as explained by Donald A Fuller in his book Sustainable Marketing ; Managerial -Ecological Issues.
Best regards
Pathmini MGS
Dear Pathmini, I asked the question to raise awareness about the fact that we have shifted to green markets yet when you asked what is their price structure the answer does not come out that easy even from those promoting green markets....
and the reason maybe simply that there is right now a green market knowledge gap: there is no theory of the perfect green market yet, I am writing a paper on this right now; there is no theory of the environmentally responsible firm/consumer or green micro-economics; and there is no theory of the environmentally responsible economy or green macro-economics.
The price structure of green markets differs from the price structure of the traditional market by a green margin:
You may find the following article as having food for thoughts:
The Past Versus the Present in Development Thinking: Pointing Out the Structure of the Old Agricultural Development Model After Internalizing Environmental Externalities.
https://www.researchgate.net/publication/281244857_The_Past_Versus_the_Present_in_Development_Thinking_Pointing_Out_the_Structure_of_the_Old_Agricultural_Development_Model_After_Internalizing_Environmental_Externalities
Have a nice day Pathmini!
Article The Past Versus the Present in Development Thinking: Pointin...
Dear friends, here sharing my most recent article which I trust you may find interesting in terms of food for thoughts:
If Going From Free Markets to Non-Free Markets is the Way to Go: Does This Means the End of Rational Decision Making Thinking or Is This Just a Temporary Block of a Perfect Paradigm Shift to Green Markets?
https://www.researchgate.net/publication/312092336_If_Going_From_Free_Markets_to_Non-Free_Markets_is_the_Way_to_Go_Does_This_Means_the_End_of_Rational_Decision_Making_Thinking_or_Is_This_Just_a_Temporary_Block_of_a_Perfect_Paradigm_Shift_to_Green_Mark
Article If Going From Free Markets to Non-Free Markets is the Way to...
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