2 thoughts on “Problem Memo on Overuse of Fossil Fuels”
Joe, thank you for writing about this topic! It is so important for people to know where their money is being invested and how it impacts the environment and the world in which we live.
I really liked your mention of the Clean Power Plan and the need to align environmental agendas to highlight the potential impact and successful outcome of working towards a common goal with other governmental agencies. (If only this were a reality, that governmental agencies worked together rather than separately on issues that often interconnected their missions… ) Your paper made me realize that fossil fuels have incredibly similar effects on the environment and public health as those caused by animal agriculture and poor waste management practices.
My question is, if NYC divests from companies that support fossil fuel production, what alternatives will they use instead? What about the people whose portfolios already include these companies? What would happen to their pensions and investments if NYC does divest and the fossil fuel companies tank as a result?
As the world is growing increasingly aware of and concerned with our carbon footprint, this is certainly a great topic to explore. Since our pension systems provide such great financial support to the companies they invest in, it is critical that we ensure our funds are invested responsibly.
Joe – I like that you swung for the fences on this one. You do an excellent job of outlining the problems that are resulting and will result from humanities dependence on fossil fuels. The situation is as dire as it gets. My concern though is that asking the state of New York to divest its from the fossil fuel industry is A) going to be impossible and B) if successful, will have about the same impact as throwing an egg at a freight train. The reason I think it’s impossible is because even if you target assets held by NYS that were explicitly linked to fossil fuel extraction, such as Exxon stock, you would still be left with a whole host of funds that are inextricably linked to these companies. Because our whole economy is built on the consumption of oil, to divest honestly you would have to dump any asset related to automobiles, aerospace, construction, and even the tech industry (which uses fossil fuels when mining silicone from the earth and when shipping their products to every Best Buy across the country). Once you do this, you’re left with low-yield muni-bonds and unproven “clean energy” manufacturers (good luck explaining to NYS pensioners why their money was put into losing investments, which is something that will inevitably happen).
The logistics of pulling out aside, even if NYS were to successfully divest in such a fashion, fossil fuels don’t need us to remain a problem. Other countries, whose usage we cannot control here in NYS or the USA, will almost certainly continue burning various sources of fossil fuels so long as they are available. Climate change is an issue that is and will affect every human being on the plane regardless of whether they live in a country that uses fossil fuels. Every state in the Union can pull out of fossil fuels but that won’t change the fact that we are only 5% of the globe’s population and other places will continue using these fuel sources to go about the business of lighting and heating their homes. To really solve this problem you would need to convince all of humanity that it is not in our best interest to pursue infinite economic growth and that some resources are best left unconsumed. As there are no human institutions on the planet, government or otherwise, capable of doing this, I think trying to grapple with this issue through the framework of policy is, at best, an exercise in futility and, at least, a very hard paper…
Joe, thank you for writing about this topic! It is so important for people to know where their money is being invested and how it impacts the environment and the world in which we live.
I really liked your mention of the Clean Power Plan and the need to align environmental agendas to highlight the potential impact and successful outcome of working towards a common goal with other governmental agencies. (If only this were a reality, that governmental agencies worked together rather than separately on issues that often interconnected their missions… ) Your paper made me realize that fossil fuels have incredibly similar effects on the environment and public health as those caused by animal agriculture and poor waste management practices.
My question is, if NYC divests from companies that support fossil fuel production, what alternatives will they use instead? What about the people whose portfolios already include these companies? What would happen to their pensions and investments if NYC does divest and the fossil fuel companies tank as a result?
As the world is growing increasingly aware of and concerned with our carbon footprint, this is certainly a great topic to explore. Since our pension systems provide such great financial support to the companies they invest in, it is critical that we ensure our funds are invested responsibly.
Joe – I like that you swung for the fences on this one. You do an excellent job of outlining the problems that are resulting and will result from humanities dependence on fossil fuels. The situation is as dire as it gets. My concern though is that asking the state of New York to divest its from the fossil fuel industry is A) going to be impossible and B) if successful, will have about the same impact as throwing an egg at a freight train. The reason I think it’s impossible is because even if you target assets held by NYS that were explicitly linked to fossil fuel extraction, such as Exxon stock, you would still be left with a whole host of funds that are inextricably linked to these companies. Because our whole economy is built on the consumption of oil, to divest honestly you would have to dump any asset related to automobiles, aerospace, construction, and even the tech industry (which uses fossil fuels when mining silicone from the earth and when shipping their products to every Best Buy across the country). Once you do this, you’re left with low-yield muni-bonds and unproven “clean energy” manufacturers (good luck explaining to NYS pensioners why their money was put into losing investments, which is something that will inevitably happen).
The logistics of pulling out aside, even if NYS were to successfully divest in such a fashion, fossil fuels don’t need us to remain a problem. Other countries, whose usage we cannot control here in NYS or the USA, will almost certainly continue burning various sources of fossil fuels so long as they are available. Climate change is an issue that is and will affect every human being on the plane regardless of whether they live in a country that uses fossil fuels. Every state in the Union can pull out of fossil fuels but that won’t change the fact that we are only 5% of the globe’s population and other places will continue using these fuel sources to go about the business of lighting and heating their homes. To really solve this problem you would need to convince all of humanity that it is not in our best interest to pursue infinite economic growth and that some resources are best left unconsumed. As there are no human institutions on the planet, government or otherwise, capable of doing this, I think trying to grapple with this issue through the framework of policy is, at best, an exercise in futility and, at least, a very hard paper…