Long Money on Short Resources
Submitted by Aguanomics Blog
This article describes the various investment “opportunities” that are springing up to take advantage of changing conditions, e.g.,
Pictet introduced a timber fund aimed at exploiting an expected demand spike and supply squeeze in timber markets by investing in companies that own or manage forests and timberland.
[snip]
“Climate change is one of the most serious problems facing the world today, and as fund managers, we are trying to identify the investment opportunities behind issues of climate change,”
This article reminds me of the widely unknown fact that a profit-maximizing monopoly (i.e., NOT the government) is most likely to extend the lifespan of a resource pool by seeking the highest price for its contents. Mad competition (e.g., over fish in an open access fishery) is most likely to destroy a resource.
Bottom Line: The bad news is that climate change is putting resources (water, timber, fish) under additional stress. The good news is that investors and corporations — in their quest for profits — will maximize the benefits of those remaining resources.
