This results to the decline in De Beers’ market dominance. Nevertheless, due to the policies that De Beers implemented; the company had increased its profits. Most likely, this is due to the quality of diamonds and a result of the Kimberley Process which reduced supply from illegal sources. The joint venture must have also helped in “increasing the manufacturing capacity at lower cost and enable to share the cost of research and development” (Goldsmith, Chap12;256). In Botswana the government acted towards the benefit of the citizen.
Specifically, the government helped in boosting economic growth by supporting De Beers. The government made sure that it provides “a stable environment” to attract more industries(Diamonds, 8/9/08) . Energy is something that economies depend upon to work. From production to packaging and sales, energy is used all throughout. The current depletion of fossil fuels and the negative impact of coal reactors results to a move towards a greener or a more environment friendly and cheaper source of energy.
Since wind turbines, hydroelectric plant and geothermal plants are all costly and at times unreliable to city life, the last option would be to utilize energy from the sun. In both the United States and Europe tax credits are imposed for the use or purchase of equipments to produce renewable energy. This means that a certain amount will be deducted to consumer tax or income tax whenever purchase is made (CCH Tax Law Editors, 2008; 468). Rosenbloom, however, noted that the policies in Europe are more stable than those in the United States (Giant Retailers, 8/11/08).
The Congress had let the policy regarding federal tax credit “expire and renewed several times” (Giant Retailers, 8/11/08). California, New Jersey and Connecticut are further cited by Rosenbloom to have generous incentives regarding the purchase and use of solar panels and other equipments to save energy use. Currently, various retailers across the United States are trying to get hold and use solar panels to help compensate the use of electricity. Rooftops of various retailer outlets and distributors are now installed with solar panels.
They are also trying to make use of “wind turbines and reflective white roofs” (Giant Retailers, 8/11/08). In my opinion, tax credits are good incentive for installation of solar panels in retail stores. Stores are public places and are one of the main energy consumers. It is important to promote green building standards and technology use in stores since it will cut their expenses and conserve energy. Tax credit contributes to green building and technology since it somehow convince the public especially businesspeople to avail the equipments that save energy and utilize renewable energy today.
Businesses such as retail stores, as specified by Rosenbloom, hope to drive the price of solar power down by purchasing the technology which increased the demand. This will trigger an increase on production and investment on solar energy equipments which supposedly lead to lower prices in the future. Furthermore, they are convincing other retailers and stores to “join the bandwagon” (Giant Retailers, 8/11/08). The increase in demand will promote innovations which shall improve the technology involved.