The Cody Word
  • April 21, 2009 05:48 PM EDT by Cody Willard

    Money For Breakfast Preview: Green companies vs. the economy

    I'll be on with Alexis tomorrow morning for Money for Breakfast to talk green companies and PR and brand and whether any of that matters in this economy.  And cap and trade.  And more.

    Here are my answers from the pre-interview:

    1.    WHAT HAS THE ECONOMIC CRISIS DONE TO THE ENVIRONMENTAL MOVEMENT?

    We used to have people come on Happy Hour touting their $800 "environmentally-conscious" purses.  People now just wanna make sure they can make their mortgage payment.

    2.    HOW IMPORTANT ARE ENVIRONMENTAL ISSUES RIGHT NOW WITH UNEMPLOYMENT     HOVERING AROUND 8.5%?

    Environmental issues are always important -- the negative externalities of unchecked industrial growth hurt everybody, whatever the unemployment rate.  We already have laws to protect us from pollution...rather than create new crony tax credits and markets to build on them (cap and trade, that is), how about we just get serious about punishing polluters?!

    3.    HERE’S A RECENT QUOTE FROM DAVID OWEN IN THE NEW YORKER:

    Our best intentions regarding conservation and carbon reduction     inevitably     run up against the realities of foreclosure and bankruptcy     and unemployment. How do we persuade people to drive less—an     environmental necessity—while also encouraging them to revive our     staggering economy by buying new cars?

    WHAT’S YOUR RECATION?

    My reaction is same as above -- just enforce the laws we have against CO2 pollution already and the environment will see immediate improvement.

    4.    A RECENT GALLUP POLL SUGGESTS THAT A GROWING NUMBER OF PEOPLE THINK     THAT GLOBAL WARMING HAS BECOME EXAGGERATED…WHAT DO YOU THINK?

    Of course it has been exaggerated -- Republican/Democrat regime members have been using the propaganda about "global warming" for their convenience for years. I'd say:

    Pollution = real problem.

    Global warming = possible ramification of pollution

    5.    GOING GREEN HAS BECOME TRENDY IN CORPORATE AMERICA…HOW MUCH DO     COMPANIES REALLY CARE ABOUT THE ENVIRONMENT?  OR ARE THEY JUST TRYING     TO CAPITALIZE ON A TREND?  ((CLOROX BUYING BURTS BEES))

    They don't care about helping the environment except for the fact that doing so helps their brand which helps their bottom line.  I couldn't care less if companies "really care" or not actually though -- because as long as the media and consumers push environmentalism and non-pollution as a noble cause, companies will do so too.

    The upshot: don't create false new markets for trading energy pollution crimes; just punish any polluters and consumers will take care of the rest...

Corey in GA

What laws are there against CO2 pollution? That's essentially the exhaust of any combustion process? Only hydrogen and a few other rare processes of combustion fail to produce significant CO2. That's why making CO2 a pollutant essentially calls any inefficiency "pollution". The question is, will people with a minivan be forced to only drive it when there are more than 2 people in the car, as driving a large vehicle when not necessary would be inefficient and thus "pollute" more? The most important issue with any cap and trade system (or any efficiency requirements) that applies to manufacturing (or anything that can be outsourced) is that it reduces the competitiveness of the domestic process compared to areas where the efficiency requirements are not in place (i.e. China). This makes increased efficiency requirements without increased tariffs on products of consumption unlimited countries tantamount to telling people that their jobs are not as important as appearing to be globally conscious. (I say "appearing to be" since moving a moderately efficient enterprise here to a horribly inefficient enterprise in China results in a net INCREASE in global CO2, thus harming the environment.) See Global Carbon Initiative on Facebook. Another important and oft overlooked carbon issue is other forms of carbon production and absorption. How much carbon is "produced" via the razing of forest and the drainage of bogs, both of which absorb vast amounts of carbon until they are razed?

April 22, 2009 at 9:33 am

about this blog

  • Cody Willard is an anchor on the FOX Business Network. Willard is also the principal of an investment management company. He was a long-time featured columnist for the Financial Times and TheStreet.com as well as a regular featured economist and stock picker on CNBC's ''Kudlow & Company."

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