Combating climate change will offer America a challenge to find a solution to global warming and the financial meltdown which has lead to the downfall of stocks, exchange traded funds (ETFs) and the overall economy.
The theory of the government spending and investing heavily into green technology to solve the problems of the economic meltdown and global warming has been gaining merit throughout the world. In fact, the United Nations has called for a “Global Green New Deal” and President-elect Obama has proposed to spend nearly $150 billion over 10 years for the cause, creating millions of jobs in the process, states the Economist.
The Economist refutes the idea of subsidizing clean energy for the following reasons: subsidizing requires politicians to determine how to deliver the energy and often subsidizing pushes up prices resulting in diminishing cost-effectiveness and increasing in prices of other goods, such as food.
Representative Henry Waxman won the chairmanship of the House Energy and Commerce Committee, a vote that could be a boost for green energy. Waxman is an advocate for pollution controls, report Lorraine Woellert and Daniel Whitten for Bloomberg. He argued for a change in leadership on the committee to help push Obama’s legislation through.
Two ETFs that will be influenced are:
- PowerShares WilderHill Clean Energy Portfolio (PBW): down 76.2% year-to-date
- Market Vectors Global Alternative Energy ETF (GEX): down 72.3% year-to-date
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.