Monday, February 16, 2015

Greening investments doesn't pay

Paul Taylor

The pernicious, partisan and often myopic eco-activists’ cries to green every private, government and commercial human act are not always prudent investment decisions. In 2005, the Wall Street Journal estimated that U.S. government environmental regulations cost 5% of U.S. gross domestic product. Now a decade later, that GDP hit is even higher due to expansion in not only federal regulations including climate-directed alternative energy subsidies and mandates, but also insidious state and local environmental compliance requirements.......“Global Divestment Day,” a two-day event when college administrators will gather to be green guilt-tripped into divesting their multi-billion dollar endowment portfolios of fossil-fuel related investment products....... “Taken together, these and other costs have the potential to reduce annual endowment growth by billions of dollars annually. If applied to total U.S. university endowments, (fossil-fuel) divestment could decrease investment returns by over $2 billion annually due to lost diversification benefits, and further incur an additional $230 million in annual compliance costs. A reduction in wealth of this magnitude could have a substantial impact on the ability of universities to fund research, services and scholarships.”.... To Read More.....

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