Green economics

Green economics is something that will soon be talked a lot in Europe. It is an interesting idea. Basically it is about bringing in more environmentally friendly policies that also fuel the economy. Increasing the productivity of Europe by reducing by reducing CO2 emissions.

Think about it in this contexed, the price oil goes up, the price of everything goes up. For every Euro cent increase of oil, it costs about an extra €1000 per year for a truck driver to carry his cargo. Thus cost of service and then the price which the consumer buys his product goes up. Times that by the amount of truck drivers there is in Europe and again by the rapid increase in oil in the past few years and you might start getting a glimpse of why there is a global recession. By making companies more green friendly, you reduce the dependency on oil, thus slow down the cost, thus slow down the price of goods and inflation.

This concept I guess is some form of “right-wing environmentalism” oppose traditional tree hugging hippie environmentalism.

European commissioner, Antonio Tajani, explains how reducing C02 emissions will reduce the price of flights down, save Europeans billions and will bring Europe closer together.

The skies in Europe are still fragmented. As a consequence, flights are on average 49 km longer than needed. Let me provide you with some concrete examples. During a flight which goes from London to Madrid, we generally fly 123 km more per flight, from Amsterdam to Milan we add another 155 km, whereas from Lyon to Frankfurt we arrive at an additional 177 km. This means that on average we fly between 10 and 15 minutes more than it is actually necessary.

These proposals aim to further improve safety, cut costs and reduce delays. As a matter of fact, thanks to a reduction in queues to take off and land, passengers will have more chance of arriving on time. More over the package will help us deliver safer and greener flying, while creating more capacity. Studies demonstrate that an optimised Air Traffic Management in Europe has the potential to reduce fuel consumption and emissions by about 10% per flight.

That will mean that airlines could save up to 16 million tons of CO2 emissions per year and cut their annual cost by between two and three billion euros. This is why I am convinced that this package is a win-win for passengers, for Europe’s economy and for the environment.

The commissioner goes on to explain the importance of a stronger united Europe and how transport policies will help Europeans feel closer together.

We need to give new impetus to the European political project and to continue the process of ratifying the Lisbon Treaty. We must move forward, pursuing an ambitious project as Europe’s founding fathers did. This is why we need a greater Europe, but it must be a Europe which is also capable of responding quickly to citizens’ immediate problems.

The time has come for us to demonstrate our courage: we can’t play a passive game, we need to have a hands-on approach. Transport policy is becoming more crucial than ever because it gives us the means to progress. EU institutions have a major responsibility and I wish to take on my share of it because I am convinced that without a strong transport policy there cannot be a united Europe.