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Macro and Micro Economic Principles of the Kyoto Protocol Result - Making Money

This presentation applies basic economic theory to the energy sector. The paper explores the introduction of Climate Change policies such as the Kyoto Protocol to identify economic market opportunities for the energy efficiency economy. This will expose market trends providing decision makers with information they can use to benefit their organization. When viewed in classical economic terms Climate Change policy is creating new opportunities. Climate Change is shifting sustainable economic growth away from the fossil fuel sector towards a new economic sector. We have termed this the "Energy Efficiency Economy ". The Fossil Fuel Economy is mature, has declining global supply, increasing demand and increasing cost of exploration. These factors are creating an environment of higher and volatile price. Classic economics dictates and increase in price or price instability will limit consumption and lead consumers to seek alternatives. This is happening to a certain extent now. We can expect this trend to accelerate as new alternatives continue to enter the market place at an increasing rate. Returns from new emerging technologies tend to be above average in comparison with returns from mature sectors. In addition to lowering hard costs, the Energy Efficiency Economy also provides environmental and social responsibility benefits to soften the blow of a coming oil crisis. The Kyoto Protocol may appear to be a tough measure to implement. However, in pure economic sense, Kyoto can soften a catastrophic blow to world economies from an oil crisis. Those who understand this Protocol and how it will affect markets will be able to position themselves to make rational decisions in the best interests of their stakeholders. Governments, Corporations and individuals can learn from Kyoto and use these basic economic principles to position themselves and take advantage of the booming 'Energy Efficient Economy" to make money!