Elizabeth Warren has proposed a market-based approach to encouraging the adoption of clean and renewable energy. Almost every large corporation today has a “sustainability” office or its equivalent that is working on mitigating the risks posed by climate change. (DoD does as well.) Senator Warren is proposing that the risks of climate change be factored into a company’s valuation.
That way, investors can factor such risks into their investment decisions, setting up a feedback loop that rewards risk reduction with higher valuation.
For all the people who like to yell “Socialism” at every idea other than reducing taxes on the wealthy, why would you not endorse this? This is a market based approach; government stays out of any decisions by corporations.
And for those of you who agree with the 4% of scientists who do not think climate change is real, why would you not endorse this? If there is no need to address climate risks, the market will self correct within a few years and prove you were right all along. That’s an inherent capitalist efficiency.
Bravo Elizabeth Warren for proposing an intelligent capitalist solution! Is this something we an all agree on?