Thursday, June 11, 2020

CAN COVID BECOME A CLIMATE CHANGE BENEFACTOR?

Previous to this pandemic most companies were reluctant to have even a fraction of their employees work remotely, and it’s probable that more than half of the people who worked in offices and buildings before the pandemic but have been remote working since will eventually return to doing so after the transmission risks of Covid are mitigated (either through vaccine, herd immunity or because this virus becomes endemic).

But what if we took this disrupter and flipped it from a crisis to an opportunity?

Say for example, the Government of Canada were to create a modest Corporate Tax Credit of just $500 per year for every employee a company has that works from home at least 60% of their time (pre-existing telecommuters and new ones would be included but not those whose work qualifies for travel expenses more than 30% of their time).

AND say for example, the Government then provides every employee that meets the above qualification with a $300 per year Personal Tax Credit for working from home at least 60% of their paid hours!

It seems like that might not be enough of an incentive for Companies and Employees, but that’s not quite true, is it? In addition to the corporate credit the company would see corporate expense savings by not needing to “box” an employee, and in addition to the personal credit, each employee would save not needing transportation, clothing and food to get to and from that “box”.

And since 90% of all government infrastructure spending is in support of moving people around, with just 40% fewer people on the roads, highways and transit systems GOVERNMENTS AT ALL LEVELS would see a drastic drop in demand for infrastructure because fewer cars mean less work on roads and less demand for new highways while fewer commuters mean less investment in transit or at least, more concentrated and targeted transit investment.

And cutting any of that would save Cities, Provinces and the Federal Government HUNDREDS OF BILLIONS each year, surely more than enough to off-set the cost of those tax credits.

But more importantly, since one of the most immediate visible effects of the pandemic was pollution reduction in China (where we’ve seen smoggy skies clear for the first time in decades) and suddenly more clear water all around the Mediterranean (there’ve been reports of dolphins swimming up rivers around Rome for the first time in almost a century) the reduction in human activity caused by working remotely has a significant ecological benefit.

Meaning those modest Tax Credits not only benefit corporations and benefit their employees, but could also benefit our biosphere and the animals that live in them (us included).

Suddenly, the shift forced on us by necessity becomes a gateway to not only achieving the Paris Accords but possibly exceeding them.
And when people do need to go somewhere, well, driving is a lot more pleasant when you’re not bumper to bumper for hours on a drive that during the pandemic took only 30 minutes!

Isn’t that a win/win/win?

Think about it.

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