Page 614 - Sustainable Cities and Communities Design Handbook

Afterword: A Sustainable Economic and Finance Proposal Chapter j 30 581

Usually lenders are reluctant to apply prospective cash flow savings in
underwriting calculations, especially in this environment when many of the
loan losses were due to pro forma cash flow predictions that were never
realized. However, my understanding is that some of these energy retrofits are
arranged by engineering or service companies that will guarantee the energy
savings. In this case, there may be a flexibility here.

CONCLUSION NOW AND FOR TOMORROW
As Governor Brown put the concern and vision correctly, while serving as
Attorney General
By 2020, California should produce 20,000 new megawatts (MW) of renewable
electricity, and also accelerate the development of energy storage capacity.
California can do this by aggressively developing renewables at all levels: small,
onsite residential and business systems; intermediate-sized energy systems close
to existing consumer loads and transmission lines; and large scale wind, solar
and geothermal energy systems. At the same time, California should take bold
steps to increase energy efficiency.
And above all, as the Brookings Institute stated: “The clean economy has
remained elusive in part because, in the absence of standard definitions and
data, strikingly little is known about its nature, size, and growth at the critical
regional level” (Muro et al., 2011, p. 3). Although Brookings did this some-
what in their report, they also noted that “Currently no comprehensive national
database exists” (Muro et al., 2011, p. 3). This was one of the conclusions that
Clark and Fast (2008) came up with in their study of “qualitative economics”
as a new field of economics that would focus on definitions and meanings that
ranged from numbers to symbols to make economics “a science.” More studies
and research must be done in this area since words like “clean” and “green”
are very different.
In conclusion, the next economics is based on the following.
What the social capitalism paradigm argues, is that states or governments
cannot be invisible. or leave certain societal areas and sectors open to .market
forces.. Government must be active and even protective in certain areas that
impact on all citizens, including businesses and new enterprises. Governments’
role is to provide guidance through some regulation, oversight and investment
stimulation policies and programs.

Clark and Li (2004, p. 9)
The basic issues are using qualitative economics in outlining and dis-
cussing the “next economics,” but such studies must also concern politics,
governments, employment with new companies, and union.