Wednesday, July 23, 2008

It’s Not Easy Being Green

And it’s not cost free, either. Prof. Bainbridge notes a study in which significant corporate green investments yield negative shareholder returns.

Not exactly a shockeroo. I have only a MBA from a B grade B school, but I did learn that big dollar projects that don’t project adequate risk adjusted rates of return are a very bad idea. The natural suspicion is that given the religious / political demands for “green”, the risk element of the equation is significantly understated.

And spare me the whining about externalities. I’ll believe there might be an environmental crisis when Al Gore acts like there’s one. I’d be more prone to believe if he wasn’t positioning himself to profit by the scare tactics he employs.

If The Goracle had taken a nickel of this kind of funding from ExxonMobil, he’d have been consigned to the outer darkness long ago. But somehow, we’re supposed to believe that he’s an objective an uninterested observer, only seeking our good, not the welfare queen that he is.