Question
Asked 31st May, 2023
  • Independent QLC researcher

Competition between dwarf green markets and green markets under closed and open systems: How does it work? Which countries would fall first?

Imagine a world where developing countries have to work under dwarf green market thinking as they do not have the resources needed to close their renewable energy technology gap and they are then stucked in a world of bearing climate change without a path to environmentally clean markets. And imagine developed countries using their resources to close their renewable energy technology gap as they have the resources to do so and work under green market thinking with a clear path to transition to an environmentally clean economy.
We can look at this bipolar world as existing under a closed system and under an open system environment. Which raises the question: Competition between dwarf green markets and green markets under closed and open systems: How does it work? Which countries would fall first?
What do you think?
Respectfully yours;
Note:
You need to know the difference between dwarf green markets and green markets in terms of model structure and price structure and in terms of how they work to be able to address this question.

Most recent answer

Lucio Muñoz
Independent QLC researcher
Jordi, good day, Thank you for taking the time to think about it and give it a detailed try. If we were comparing dwarf green markets in developing countries vrs dwarf green markets in developed countries, you comment is perfect and detailed, but the question is about dwarf green markets vrs green markets having just for example developing countries setting up and implementing dwarf green markets and developed countries setting up and implementing green markets.
The note at the end of context in question reads: Note:
You need to know the difference between dwarf green markets and green markets in terms of model structure and price structure and in terms of how they work to be able to address this question.
Jordi, you can find ideas about the differences between these two different types of markets and about green market thinking and dwarf green market thinking in general in the following articles, Take a look at them when you have time:
The Flipping of Traditional Economic Thinking: Contrasting the Working of Dwarf Green Market Thinking with that of Green Market Thinking to Highlight Main Differences and Implications
Beyond Traditional Market Thinking: What is the Structure of the Perfect Green market?
From Traditional Markets to Green Markets: A Look at Markets Under Perfect Green Market Competition
Sustainability thoughts 109: Linking perfect green market theory to the circular green economy
Sustainability thought 169: Does defining sustainability as sustainable development requires alternative academic facts? If Yes, what is the nature of these alternative academic facts?
Sustainability thoughts 130: Can green economies and green growth exist without green markets? If not, why not? What is the current main development implication of this?
Sustainability thoughts 139: How can the 2012 road to transition from environmental pollution based traditional economies to the environmentally clean economies that the world never built be pointed out?
Sustainability thought 162: Can we transition from the environmentally dirty economy to the environmental clean economy with the use of dwarf green markets? If no, why not?
Sustainability thought 177: What are environmental pollution production markets, environmental pollution reduction markets, environmental pollution management markets and no environmental pollution production markets? How do they work?
Sustainability thought 179: Can we transition from the environmentally dirty economy to the environmental clean economy with the use of green markets? If Yes, why?
Sustainability thoughts 105: An overview of the externality structure of all possible markets and of the specific market illusion under which each of them operates.
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All Answers (4)

عبد الناصر نونة
جامعة باتنة1
يمكن لنظام الطاقة الذي يركز على الطاقة المتجددة أن يساعد في حل العديد من التحديات الاجتماعية والاقتصادية والصحية والبيئية في إفريقيا. إن التحول العميق للطاقة ليس ممكناً فحسب ، بل إنه ضروري لمستقبل آمن مناخياً يتم فيه الوفاء بامتيازات التنمية المستدامة. الطاقة المتجددة هي المفتاح للتغلب على فقر الطاقة ، وتوفير خدمات الطاقة اللازمة دون الإضرار بصحة الإنسان أو النظم البيئية ، وتمكين تحول الاقتصادات لدعم التنمية والتصنيع.
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Lucio Muñoz
Independent QLC researcher
Abdel, you are right in what you say from the point of view of developing countries/Africa, but notice that the same is true for developed countries too, that transition can only happen within green market thinking, not under dwarf green market thinking and for it to happen countries need resources to invest in closing the renewable energy technology gap and avoid economic black outs if we can not meet the energy needs of the economy.
If you look carefully, the question is framed in a way that capture the situation you described and compared it to whether you are living under a dwarf green market or under a green market environment....
Now, do you have a view on how to answer the current question: Competition between dwarf green markets and green markets under closed and open systems: How does it work? Which countries would fall first?
Respectfully yours
Lucio
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Jordi Soler Alomà
Fundació TecnoCampus Mataró-Maresme
Dwarf Green Markets: This term likely refers to developing countries that face challenges in accessing and implementing renewable energy technologies due to limited resources, financial constraints, or technological gaps. These countries may have smaller-scale renewable energy sectors or face difficulties in scaling up their efforts to transition to cleaner and more sustainable energy sources.
Green Markets: In contrast, "green markets" typically refers to developed countries or regions that have made significant progress in adopting and promoting renewable energy technologies. These countries often have greater financial resources, technological capabilities, and supportive policies to drive the transition to environmentally clean energy sources. They may have well-established renewable energy industries and a clear pathway towards achieving an environmentally sustainable economy.
In a closed system environment, countries may face more limited access to resources, technologies, and global markets. Developing countries with "dwarf green markets" may struggle to close their renewable energy technology gap due to financial constraints and lack of technological capabilities. The competition may be challenging for these countries as they may find it difficult to scale up their renewable energy industries and face obstacles in attracting investments and accessing international markets.
In an open system environment, countries have a greater ability to access resources, technologies, and global markets. Developed countries with "green markets" may have more resources available to invest in renewable energy technologies, promote sustainable policies, and develop cleaner economies. They may benefit from technological advancements, international collaborations, and a more established renewable energy sector. This can give them a competitive advantage in terms of attracting investments, expanding renewable energy capacity, and achieving a more sustainable energy transition.
However, it is important to note that the transition to renewable energy is a global challenge, and the dynamics of competition are influenced by various factors:
Supportive policies and regulations can incentivize investments in renewable energy and create a level playing field for competition.
Access to financial resources, such as funding for research and development or access to capital for infrastructure investments, can significantly impact a country's ability to develop its renewable energy sector.
Countries with advanced technological capabilities and research institutions may have an advantage in developing and implementing renewable energy technologies.
Availability of renewable energy resources, such as solar, wind, or hydro, can influence the potential for energy generation and the competitiveness of different countries in harnessing these resources.
Predicting which countries would fall first in this competition is highly complex and depends on numerous factors that can vary across regions and evolve over time. It would require a detailed analysis of each country's specific context, policies, investments, and capacity-building efforts.
Lucio Muñoz
Independent QLC researcher
Jordi, good day, Thank you for taking the time to think about it and give it a detailed try. If we were comparing dwarf green markets in developing countries vrs dwarf green markets in developed countries, you comment is perfect and detailed, but the question is about dwarf green markets vrs green markets having just for example developing countries setting up and implementing dwarf green markets and developed countries setting up and implementing green markets.
The note at the end of context in question reads: Note:
You need to know the difference between dwarf green markets and green markets in terms of model structure and price structure and in terms of how they work to be able to address this question.
Jordi, you can find ideas about the differences between these two different types of markets and about green market thinking and dwarf green market thinking in general in the following articles, Take a look at them when you have time:
The Flipping of Traditional Economic Thinking: Contrasting the Working of Dwarf Green Market Thinking with that of Green Market Thinking to Highlight Main Differences and Implications
Beyond Traditional Market Thinking: What is the Structure of the Perfect Green market?
From Traditional Markets to Green Markets: A Look at Markets Under Perfect Green Market Competition
Sustainability thoughts 109: Linking perfect green market theory to the circular green economy
Sustainability thought 169: Does defining sustainability as sustainable development requires alternative academic facts? If Yes, what is the nature of these alternative academic facts?
Sustainability thoughts 130: Can green economies and green growth exist without green markets? If not, why not? What is the current main development implication of this?
Sustainability thoughts 139: How can the 2012 road to transition from environmental pollution based traditional economies to the environmentally clean economies that the world never built be pointed out?
Sustainability thought 162: Can we transition from the environmentally dirty economy to the environmental clean economy with the use of dwarf green markets? If no, why not?
Sustainability thought 177: What are environmental pollution production markets, environmental pollution reduction markets, environmental pollution management markets and no environmental pollution production markets? How do they work?
Sustainability thought 179: Can we transition from the environmentally dirty economy to the environmental clean economy with the use of green markets? If Yes, why?
Sustainability thoughts 105: An overview of the externality structure of all possible markets and of the specific market illusion under which each of them operates.
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Do you think the speed at which money flows remains the same? Fisher's equations generally assume that the velocity of money flow is constant, But the rate at which we find money flows in financial activity does not seem to be constant, Money flows at different rates throughout the economy, So I wrote a new formula for the flow of money to explain the 2008 financial crisis. Do you think it makes sense?
V=m1/m2/t,
Where m1 is the amount of currency outflow (inflow) of an individual or company, m2 is the asset of an individual or company, and time t.
The formula means that the speed of money that flows through a company or a certain consumer is the expenditure or income of money divided by the assets of that consumer. For example, if you have $10,000 this year and you spend $8,000, then the money you spend is flowing at 0.8 a year. The 2008 financial crisis was an imbalance in the speed of money flows, money moving too fast in financial institutions, So much so that the capital chain breaks there (because the people who bought a house can't pay back, and the lender's money can't flow as fast as the financial institutions)
Money in the economy is not static, it is flowing. Banks and financial institutions flowed so fast, and in 2008, these banks desperately lent money to people who bought houses, That means money flows out of the bank quickly, but the people who borrowed money don't earn enough to pay the loan on time, They pay back the money more slowly than the bank borrowing money. When they reach the critical point, the bank's money can not be provided to the depositors in time, thus causing a bank run. Just like the water flow, some of the water pipe is too big, the water flow is too fast, and the water flow rupture is equivalent to the rupture of Bank of America in 2008. Therefore, the 2008 financial crisis in the United States was caused by the unbalanced rate of money flow. The flow of money was broken and the capital chain was broken. The solution was for the central bank to release water and inject money into the banking system. Of course, getting the Fed to inject money is not the best way to solve the problem, just what has to be done when there is already a financial crisis. Until then, the government should try to keep the rate of money flow balanced, so that the speed of bank loans is roughly equal to the income of those who buy a house, or "equilibrium", so that the flow of money will not break and prevent financial crisis
..................................................................................................................................
Some time ago I wrote a formula for the speed of money flow, but I now feel that that formula is logically unreasonable, I think there's another very simple formula, so simple to upset me. Can you see that this formula is reasonable? Did anyone mention it before? Using human individuals or companies as "nodes", the flow rate of money flowing into this node is:
V=M/t
M is Money flowing out of or into the bank (assuming this "node" is the bank)
The formula means the amount of money flowing into or out of a company or individual at some time. For example, if a bank loans $10 million in a day, then the flow rate of the loan is:
V=10000000/day
A person's monthly salary is $1,000, so the speed of his salary flow is:
V=1000/month
The rate of money flow is calculated as the amount of money flowing in or out of the "node" per unit of time. If a bank, excluding reserves, it has $100 million, in a month, it lent $10 million to the customer who bought a house, assuming 10 people, 1 million each. If each of the ten customers pays $10,000 a month, the total is $100,000. Ignoring interest, there is still $9.9 million, and $9.9 million needs to be made up from other sources. If this bank, someone withdraw 90 million dollars a month,Then its $100 million is just enough.((Regardless of bank profits and employee salaries) If the first 10 customers who borrow money to buy a house have a person who did not repay that month, then obviously, the bank's working capital is a problem, because some depositors can't get any cash.
Here, propose a "node monetary equilibrium", I don't know if this "equilibrium" has been proposed.
Set at both ends of the node, the inflow and outflow of money are respectively Mg and Mx , the node has money stock is Mc, and the time period is t, then:
Mx/t=(Mg+Mc)/t
Because the time period is the same, so:
Mx=Mg+Mc
Here, Mc is the currency, not including the fixed assets of the node, such as excluding his house, car, etc.("Node" refers to the individual, company, bank and other subjects that "flow through" the currency.)
The formula means that the money that flows out of the node is equal to the currency that the node originally has and the currency that flows in. For example, if someone had $800 and received a $200 tip, then he had $1,000, and then he bought an iPhone for $1,000.
This is the equilibrium condition of extreme. In fact, there are three cases of the relationship between these three currencies, besides the one above, there are two:
Mx>Mg+Mc
This situation means that the amount of money out from the node is greater than the sum of the original amount of money and the subsequent income of the node. In this case, for example, when the bank borrows too much money and the borrower cannot keep up with the repayment. This condition is equivalent to a human blood loss.
There is also the most common condition:
Mx<Mg+Mc
This means that the amount of money flowing out of the node is less than the sum of the original amount of money and income of the node. This situation can be compared to the blockage of human blood flow.
These three cases of the flow of node currency can be compared to human health, blood loss and vascular blockage. Obviously, blood loss is unhealthy, and the financial crisis is the "blood loss" of the banking system, and the "blockage" is that the rich people's money is not consumed.
Ideally, money flows should certainly not be "bleeding" or "blocked" things, but certainly not in reality.
Here, "Mx=Mg+Mc" is called "money supply equilibrium".
The cause of the financial crisis is that the flow of money is blocked or cut off like "water". When the equation above is equal, the flow of money is smooth, the other two scenarios could lead to a financial crisis, in severe cases.

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