Hacker News Reader

Comment by FredPret | Hacker News Reader

Profiting by fixing problems is how we fix problems.

I will add that the pie has never grown faster, and shows every indication of speeding up.

Major challenges like climate change (challenges to the economy, that is) look relatively minor when you compare it to past issues like WW1, WW2, possible nuclear destruction, widespread famines as recently as the 20th century; and when you also take into account that we have proven tech like nuclear and solar power and greenhouse and hydroponic farming that we can now use to tackle this issue.

Climate change is an ecological catastrophe, but we'll find a way to grow wealthier with or without a thriving ecosystem.

View on HN

I wouldn't say that buying stock in companies that provide air conditioners to consumers fits any definition of fixing the problem of man-made climate change. In fact, wouldn't a warmer planet be better for AC businesses?

Why not - a well-funded AC company will be more capable of meeting the challenge, and since people demand green solutions to things now, also be more able to develop more efficient climate control systems.

This of course will not happen on autopilot, so investors must as always keep a close eye on the CEO and vote in shareholder meetings instead of just buying-and-forgetting.

It doesn't solve climate change of course, but it does make a tiny improvement to one aspect of it. Multiply by every company touching the climate, and you can effect real change.

Sure it would; Air conditioner margins are based on efficiencies; and a heat pump reduces emissions from less clean heat sources.

and from a more short term perspective;

slowing the migration of people from warm places to another will reduce the spike of resources required to house those people.

> Profiting by fixing problems is how we fix problems.

I take your point. But only partly: the profit motive can be useful to some degree for some situations, provided that market failures don't undermine the connection between private action and public benefit.

(Aside: Many classes of problems are solved without an explicit profit mechanism.)

Also useful:

- rules for such mechanisms (a "floor", in a sense, for how they operate) - expectations for such mechanisms (what we hope they accomplish) - philosophies and moralities for people that guide us

P.S. Bonus points if you can answer this question. Mathematically speaking, what would it take for a market to incorporate the relevant time horizons and externalities such that we might have even a 50% confidence that a market would get the incentives right to reduce global warming?

Being an investor in sales of new heat pumps and related technology is a great way to reduce wood, oil, gas, and coal burning in the house and in general -- as heat pumps are typically greater than 100% efficiency.

Indeed. When there's only one person left alive they'll own all of humanity's wealth, making them the wealthiest person to have ever existed.

Reply on news.ycombinator.com