How it works
The problem of over consumption
Edentiti Rewards is a concept that uses market-based mechanisms and incentives to encourage communities, states and nations to change harmful behaviours by financing and rewarding positive actions that help to alleviate the problems of over consumption.
Rewards programs can be created to address any of a broad range of issues – from efficient government spending to sustainable water use; from reductions in greenhouse gas emissions to affordable housing.
The programs work by providing "Rewards" to those people whose activities support the aims of the program in a quantifiable way. When looking at Greenhouse Rewards, this would mean those whose lifestyles generate fewer greenhouse gas emissions, possibly measured by the quantity of polluting energy used. Money to fund the Rewards comes from people or businesses responsible for generating more emissions.
That is, generally people and businesses earn Rewards by consuming less harmful resources, by consuming more of some goods or less of others. Rewards are given to individuals and businesses. They sometimes may be sold or traded, but they may only be used for spending on approved goods or services, and it is the suppliers of those services who can ultimately redeem Rewards for cash.
The kind of goods and services that will be approved will vary but must always be related to furthering the aims of the Rewards program. Therefore, they may include investment into specific research and development activities; new infrastructure; reinvestment into the development and provision of public goods; or investment in appliances and practices that help individuals or communities to contribute to the success of the program.
The approach is an equitable solution to "The Tragedy of the Commons". It encourages people to modify their behaviour for the benefit of all at the same time as creating a market for technologies and infrastructure to solve the problem.
It is equitable as those contributing to the problem pay more, which provides the funding to reinvest in alleviating the problem. Those who reduce their consumption or make changes to alleviate the issue obtain the Rewards and the direct benefit of the reinvestment.
