Increasing government spending into areas such as renewable energy will not only cut down CO2 emissions, but will bolster job creation and assist sustainable economic growth–one way that governments can leverage economies to tackle climate change. Current world economies such as the UAE, and Qatar are rentier states–with their entire economies based on exporting oil. These nations, and others, can diversify their economies to sustain growth as they currently rely on finite resources. 

Diversifying by introducing subsidies to renewable firms will incentivize movement towards renewables. The renewable energy industry will increase within the country and that energy can be sold–further adding to a given nation's GDP. Highly subsidizing renewables on a global scale can lower our projected temperature increase by the year 2100 by 0.2 degrees Celcuis (as per En-Roads)–all while slightly lowering our consumption of fossil fuel burning sources of energy. Providing government subsidies will allow renewable firms to grow their capital, continue research, grow their firms, and maintain stability in the ever changing global market based economy.  

Although taxing non-renewable energy sources such as oil is beneficial for climate change, this approach wouldn’t be beneficial from an economic standpoint. This action limits one industry that provides domestic products–moving towards a renewable energy economy still allows non-renewable industries to contribute to a nation's GDP–strengthening the economy while the energy market becomes slightly diluted. Furthermore, from an egoist’s perspective, moving an economy towards renewable energy for trade is greatly self-benefiting because it allows for long term national economic prosperity–with environmental benefits being a bonus.

Its imperative governments, powerful from a macroeconomic standpoint, take action to diversify their economies. Today, “governments still cling to the neoclassical fantasy that consumption has no consequences” (Windigo Footprints). We foolishly assume that consumption of non renewable energy sources that drive a nation's GDP are sustainable. Capitalism will never die out in our society, meaning we must shift our capitalistic tendencies towards something renewable–with our governments encouraging (through tax cuts, subsidies, etc.) top investors towards renewable energy investments. If top hedge funds are able to lead the shift in investment towards renewables, we can see that the common day investor will follow.

 In this way, if they were to take short positions on some of these larger fossil fuel burning companies, their leverage could help manipulate the current market. Although these actions could provide losses for larger fossil fuel burning companies, the movement away from these non-renewable industries will act as a catalyst for the diversification of economies towards renewable sources. These actions paired with governmental support will allow for a stronger shift towards renewables by both the larger population and governments. 

This diversification of an economy into renewables is a virtuous choice, as diversification could also delve towards non renewable sectors that are untapped in a given nation such as carbon, coal, etc.. Likewise, caring for the environment will continue to aid relationships between governments, and non-governmental organizations such as Greenpeace and environmental activists which could act as lobbyists in future election campaigns. Avoiding the creation of enemies in these non-governmental climate organizations can serve as future friends when it comes to upcoming elections. For example, in a political election, having certain organizations tearing down a given candidates ideas can provide negative 

Overall, the benefits from a given nation transitioning its economy away from fossil fuel burning industries is great. Current rentier states around the world are starting to take note, with Saudi Arabia, a former strictly oil producer, now making plans to move to renewables. This energy shift towards renewables is not only the ethical choice, but it also can provide long term growth. Now we must wait, and see what actions governments around the globe will take to ensure long term environmental prosperity–and if these actions come through economic reform.