Sophia and I got a kick out of our recent viewing of The Conjuring at the cinema. I enjoyed the debate over whether or not demonic possession occurs while she just likes gettin’ scared.
Environmental demons exist and many clients inquire about environmental economics so I conjured up the following for you with the help of Edmund Conway.
“Economics and the environment are inextricably intertwined. Economic development, for example, is one of the prime reasons for climate change, but it could also conjure up its solution. Similarly, the study of economics is at the very forefront of investigations into global warming, and it is economic tools- such as taxes and regulation- that will most likely encourage people to pollute less in the future.”
Countries can cut their emissions.
“Green taxes – levies on activities that pollute the atmosphere, including taxes on fuels, on power companies for the carbon they produce, and on the dumping of hazardous materials.
Carbon trading – the preferred economists’ method involving governments auctioning permits to companies allowing them to emit a certain amount of carbon.”
If you choose to pollute more, go buy someone else’s quota.
Technologies such as wind and solar are new and expensive compared to coal and oil. This can change with more investment as technology usually improves when we demand it.
Until next week,
Susan R. Linkous
The views expressed above represent my opinion and should not be construed as specific investment advice.