Please visit http://stableproductivemoney.wordpress.com/2009/08/13/taking-the-interest-out-of-loans/ for a description of what is proposed.
I will work on some typical scenarios for loans and put them up on the same website and announce them here.
To make this approach work we must ensure that loan money is spent on ways to reduce green house gas levels in the atmosphere. Most of the effort goes into ensuring that people who sign up to loans will repay them and will use them for the defined purpose. This is achieved by making it worthwhile to repay and making repayments simple and easy to do.
How this is achieved is not in the above paper which is an explanation of the financial problem and how to solve it.
This scheme is a solution to the general problem that is sometimes called “The Tragedy of the Commons”. Another description of the underlying concept can be found at
http://cscoxk.wordpress.com/2008/06/08/a-solution-to-the-tragedy-of-the-commons-chapter-1/
I will continue to put up references on my facebook for those who wish to make sure they are notified of any developments and of the upcoming symposium we hope to run on the idea.
