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I think this is pretty reductionist. My alternative viewpoint is that it is really one of choice and substitutes. For the last century, fossil fuels by in lar
by clomond 7y ago
I think this is pretty reductionist.
My alternative viewpoint is that it is really one of choice and substitutes.
For the last century, fossil fuels by in large had no generally viable substitutes. Now, substitutes are coming online to replace previously heavy fossil fuel uses (think, electric cars powered with renewable energy for getting around town or the emergence of plant based burgers to replace beef burgers -> fossil fuel related as a primary input to agriculture is fertilizer, which is sourced from natural gas. Real meat requires significantly more fertilizer for the same amount of calories).
And - is investing really a zero-sum game? What about the opportunity for primary energy production to be substituted by renewable energy sources? Is that a promising opportunity that will be financed? If that does amount to an opportunity, wouldn't it be better to invest in that then Exxon? Particularly if you use the fuller definition of investment rather than just buying public shares?
- mxschumacher 7y agothe stock market is a secondary market, so buying the shares doesn't inject capital into the company itself. I suppose you could make an argument that investing in the primary market gives you more power/moral responsibility. The extremely high valuations of Beyond meat and Tesla show you that many investors are willing to shower these companies in money. As unbelievable amounts of capital are moving into solar and wind, it becomes marginally less attractive for additional funds to be deployed into these industries.
- pmart123 7y agoWell, it does in some ways. It makes it easier to pay employees in stock, which could be seen as an operating expense. A company could issue equity for financing at high prices like Shopify and Twilio did recently. Debt to equity is also used as a leverage characteristic.
- appleiigs 7y agoThere has always been choice and substitutes. The general public chooses to do what is cheapest and most convenient. For transportation, they could take the bus or ride a bike. A local electric utility offered green energy options for a premium cost. No one signed up.