Carbon neutral

  Its Saturday, my mind is running with ideas, plans for the future. The future where you have self drive cars, green energy and companies that are co2 neutral.

I think I understand what this will mean for the consumers that will be using these products. The companies that will be carbon neutral will use less energy, less water( less resources). Thus saving the company alot of money in operational cost. There profit margin will increase also so this will make them drop there prices to the consumers.

((A.1))Let me make a example
Sales prices: 25 rand
1) Labour cost 25*20%=5
2) Matetial 25*20%=5
3) water 25*30%=7.50
4) electricity 25*30%=7.50

((A. 2)) With a carbon neutral approach
1) Labour cost 25*15%=3.75
2) material 25*12%=3
3) Water 25*20%=5
4) electricity 25*15%=3.75

A.1-A.2= 9.50/25*100
38% margin profit
The 38% profit margin will not drop the price that the consumer will pay so you as a consumer will still pay the 25 rand. This is because companies will invest in carbon neutral technology and pay it off for a period of time. So when the company breaks even. This point the invest will start make a profit for the company.

Now with the profit companies share holders will have to make a decision another take the profit for themselves, reinvest or drop the price for the comsumer

So as a comsumer do you know the cost of the products that you use on a daily basis or will the company quarterly report make you believe the information they are telling you.

So those carbon neutrality mean for us give me your comments below: