There is no lack of awareness when it comes to the need for greener living. National and local governments have long been looking for ways to improve the environment. In fact, pretty much every major city seems to have a green action plan, or similar initiative to meet environmental targets. Of course, this is to be applauded. Their ambition is entirely correct. However, the challenge arises when it comes to actually achieving results. How do you encourage residents to take the steps required to make a meaningful impact on green living?
Wisely, many governments concluded that it would be better to use the ‘carrot’ rather than the ‘stick’, to encourage, nudge and cajole people in the right direction. Financial incentives and tax breaks have almost become the norm, to encourage energy efficiency. In the United States, the federal government offers rebates and tax credits for making energy-saving changes to your home. In Canada, the federal government recently announced that it will give people up to $5,000 when they purchase an electric vehicle. Individual cities have followed suit. Adelaide in Australia, Hamilton in Canada and Charlottesville, Virginia are among those which offer financial benefits for green construction.
However, it remains an open question as to how successful these schemes actually are. For example, in Houston, Texas, just 302 homes have been recognized under a national program which provides certification for things like renewable energy systems, water conservation and recycled materials. One reason behind the apparent limitations of these traditional green incentives, in spite of their financial generosity, is that they demand substantive and expensive changes. For example, converting your house to make it greener, purchasing an electric car or installing solar panels are major undertakings. And despite the rebates or other incentives on offer, they require a hefty initial financial outlay. For many, purchasing a bike is a luxury too far.
In addition, the incentives on offer are rarely immediate. A tax break will inevitably take time to take effect. A rebate will only eventually make its way into your bank account. Such rewards are more of a far-off prospect, rather than cash-in-hand. Instant gratification is replaced by the perception that the reward on offer is somewhat unattainable. None of which is the best recipe for encouraging people to make major changes for the sake of the environment.
Thankfully, there is another way. With the advent of digital currency, it is possible to encourage impactful green behaviour, focusing on small, everyday actions, rather than major overhauls. During our waking hours, mobile phones are rarely more than a few inches from our fingertips. Paying for things, making purchases, are activities that most of us engage in multiple times each day. As a result, a digital, mobile-friendly currency can be a powerful tool, reminding us to do good things time and again, as we navigate our daily routines.
And so, the simple act of taking the bus rather than jumping in the car, can be incentivized. Local people can be nudged towards recycling a few plastic bottles, and rightly feel good about doing it. Equally as importantly, with a digital currency residents can enjoy an immediate and direct financial reward. The knowledge that you will receive an instant monetary amount via an app, can only encourage people to undertake small but frequent actions. These are the little steps required which can add up to very real environmental change. And that of course, has long been the goal. So, for local and national governments alike, digital currency may just be the most exciting green investment they could make.
