Genesis Morocco: Greening the economy.

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Genesis Morocco

Project Genesis is a strategic sustainable development framework for Morocco to translate from being a net importer of energy and a country facing water shortage issues, into the number one producer both of clean renewable energy and water in the region.

Thursday, April 15, 2010    <<Home

Greening the economy.

Ok, I would like to get back to my thoughts of Morocco being a green economy and expose a BOLD idea. Its not my usual liberal approach to the economy, but dirigism has its good aspects if used with discernment.

Services, sure... services produce no physical goods. Medium and large sized companies operating in the services sector should therefore NOT be allowed to pay the same price as everyone else for energy, since well, they do not produce anything material (read my words carefully here) that can be recycled.

What they produce is from a physical perspective, total waste, although of economical value. It makes sense that they should pay a premium on their electricity bills as a form of VAT.

The premium could be allocated to build up renewables capacity, as basically a form of "offsetting"

I have in mind, Major Banks, IAM, Meditel, Inwi, Webhelp. The dynamics of the market are such that they cannot pass the cost to the final customer, so they will have to deflate those cash mattresses a bit which is good for the economy.

On another note, we should be looking forward to incentives for the businesses of the future such as energy efficient datacenters. Read more. or watch a funny IBM add :)

Update 10:52 PM, April 15, 2010 : Morocco is already a country with heavy imposition, so adding yet another tax is probably not the best way to go about this, the subject has to be approached rather in terms of green incentives deductible from taxes. Reducing the tax bracket is always a serious matter, but the goal wouldn't be so much reducing it but re-adjusting it to serve long term strategy.

Let me develop further, if we take the insurance and banking sectors, they are taxed up to 37%. Now say they pay a fixed premium of 20% on their energy bills that they can deduct from the taxes, they would substitute some income tax for an operating cost that they can provision for thus reducing their overall exposition to taxes.

Net income after taxes should increase, and the state still gets its additional monthlymetered revenue. The thing is Banks and service businesses will want to hide a little more of their profit in provisions (which they like to do anyway) but overall they would pay more.

It would also be a major incentive for them to go green.