Green Investing
February 6th, 2007 by Vihar ShethPosted in Capitalism, Environment
Erik Dellith provides some great insight into investing in the environment in this article, which in summary says, ‘More companies are taking steps to address global warming, providing investors with their own opportunity to go “green”.’
Dellith says that while President Bush called on Americans to slash their gasoline usage by 20% in his 2007 State of the Union, some companies are already ahead of the curve. In fact:
“Investors looking to make some green moves of their own have many options, from companies involved in biofuels, such as ethanol, to hybrid automobiles. Many of these “green” companies are already attracting attention. In the days leading up to the State of the Union Address, investors flocked to call options on companies related to ethanol , including Aventine Renewable Energy Holdings Inc. and Pacific Ethanol Inc. Additionally, Vinod Khosla, Silicon Valley’s biggest alternative energy investor, recently forecast a rapid rise in cellulosic ethanol production and utility-grade solar power. ”
The article continues with an interesting analysis of ethanol and improved fuel efficiency.
Andy Karsner, assistant secretary for energy efficiency and renewable energy at the U.S. Energy Department, said at the Reuters Global Biofuel Summit in Washington in January that there is a limit to the amount of ethanol fuel that can come from the U.S. corn crop. He indicated that the country could hit this limit in the next five years. Further, there are environmental concerns here, as well. Thus, a shift to ethanol is only part of the solution; improved fuel efficiency is another part.
Finally, Dellith discusses auto manufacturers’ positions in the market and their efforts at improved fuel efficiency.
The article is a bit tangential but still makes some good points. The key to bringing any issue into the mainstream is and always will be raising awareness. This couldn’t be truer with green issues.
