Focus on Global Warming Poises Firms to Profit

A recent article on CNN's economic news page describes how the increased focus on global warming is increasing demand for technologies that reduce greenhouse gasses, the generally-accepted culprit of the so-called crisis. Companies who have developed or are developing such technologies are well-positioned for high profits if this demand continues to increase. Just this week, the Supreme Court recognized the Environmental Protection Agency's authority to start acting to reduce greenhouse gasses, and large amounts of legislation regarding greenhouse gasses is also imminent. Some of these technologies simply create power more efficiently, so they could possibly pay for themselves in the long run. However, one new type of power plant (IGCC) costs 30% more to build than a regular power plant. The company developing this technology has received over $30 million in incentives to date. This is another example of a company making decisions that benefit all of society (no matter your take on global warming, less pollution is probably good for society), but only after incentives are provided to do so.

1 comment:

Hunter said...

I really like this posting! I agree that many companies won't move to be more environmentally friendly unless there are some type of financial gains to be realized. In this case though, I really like that there are dual benefits to this situation. Sure, the company's who are doing this for profit will be making more money, but they are also providing a benefit for us and our environment. I think this is a good example of how companies can be more socially responsible and by doing so, they can increase their revenues as well. We this is what we call in the sales business a win-win scenario.