- Joined
- Sep 27, 2007
- Messages
- 325
So free markets are all about investing resources for a gain without government intervention. For our Ontario Landlording debate I started thinking more about how government intervention introduces unintended consequences...and how these consequences harms the people that the government tries to protects
One of the problem with capitalism is the market doesn`t always puts an accurate "cost" because the entity performing the action for a profit doesn`t pay it.
I.e. Manufacturing plant pumping hazardous waste into a river. People die and the tax payers have to clean it up. When the plant owners were dumping the goo, they were doing what a free market does best....efficiently find a way to make the most profit, and that involved not spending the money to disposing the goo in a manner that is safe to the community. So governments learn and they introduce a "reg."
Effectively the "reg" changes costs and the manufacturing plant has to find another way of efficiently satisfying the government and getting rid of the goo (In Toronto`s case dumping goo in Michigan).
Recently I read an article on green leases.
Green leases are leases that include a legal basis for monitoring and improving energy performance that provide mutual contractual lease obligations for tenants and owners to achieve resource efficiency targets (e.g. energy, water, waste) and to minimize the environmental impacts.
which is great, because we are not putting an accurate cost on protecting our environment.
Initially landlords were putting in these leases for branding. Essentially limiting cashflow and destroying the valuation of their building to feel good (the landlord is a capitalists nightmare).
So the question are: how can we use green leases to make it a win for all with a limited unintended consequences impact?
Mulling it over my mind I came up with this idea:
Allowing landlords to apply for an insurance that the fees could amortized CMHC style) that lowers interest rates or property taxes. The new organization giving the premium would have the expertise to accurately measure the buildings performance (or contract to a third party).
Potential benefits:
-Lowers risk to lenders allow for owners to increase cashflow and get the credit facility to smarten up their buildings
-CMHC is one of the most profitable government businesses, we can create another one
- Protect our natural resources for future generations
- Create construction jobs for the retro-fit of buildings
- Make Canada an industry leader in smart technologies allowing us to export our knowledge base...creating more RIM`s, attracting high income earners to all major cities from around the world, filtering the net wealth effect across Canada...dare I say higher real estate values!
Thoughts?
One of the problem with capitalism is the market doesn`t always puts an accurate "cost" because the entity performing the action for a profit doesn`t pay it.
I.e. Manufacturing plant pumping hazardous waste into a river. People die and the tax payers have to clean it up. When the plant owners were dumping the goo, they were doing what a free market does best....efficiently find a way to make the most profit, and that involved not spending the money to disposing the goo in a manner that is safe to the community. So governments learn and they introduce a "reg."
Effectively the "reg" changes costs and the manufacturing plant has to find another way of efficiently satisfying the government and getting rid of the goo (In Toronto`s case dumping goo in Michigan).
Recently I read an article on green leases.
Green leases are leases that include a legal basis for monitoring and improving energy performance that provide mutual contractual lease obligations for tenants and owners to achieve resource efficiency targets (e.g. energy, water, waste) and to minimize the environmental impacts.
which is great, because we are not putting an accurate cost on protecting our environment.
Initially landlords were putting in these leases for branding. Essentially limiting cashflow and destroying the valuation of their building to feel good (the landlord is a capitalists nightmare).
So the question are: how can we use green leases to make it a win for all with a limited unintended consequences impact?
Mulling it over my mind I came up with this idea:
Allowing landlords to apply for an insurance that the fees could amortized CMHC style) that lowers interest rates or property taxes. The new organization giving the premium would have the expertise to accurately measure the buildings performance (or contract to a third party).
Potential benefits:
-Lowers risk to lenders allow for owners to increase cashflow and get the credit facility to smarten up their buildings
-CMHC is one of the most profitable government businesses, we can create another one
- Protect our natural resources for future generations
- Create construction jobs for the retro-fit of buildings
- Make Canada an industry leader in smart technologies allowing us to export our knowledge base...creating more RIM`s, attracting high income earners to all major cities from around the world, filtering the net wealth effect across Canada...dare I say higher real estate values!
Thoughts?