Climate change is highly politized. Not long ago people on the left touted electric vehicles (EVs) as technology everyone must transition to in order to “save the planet.” There were people so enraged by people driving an EV that they attacked EV drivers and vandalized their vehicles. The world also got introduced to coal rolling, where a diesel engine is modified to emit soot.
Now the tables have turned. The folks on the right love EVs because they claim Elon Musk as one of their own. EV sales are declining in the U.S. since Musk became political and people on the left are buying fewer of these “save the planet” EVs.
The problem with climate change is that it has been approached all wrong. But there is tremendous amounts of climate change good news for those willing to look.
It is always about money. If we stopped focusing on CO2 emissions and instead focused on the benefits to individuals and businesses it would be a LOT harder to politicize. It would also be a boon for the economy while increasing the wealth of households and the profits of businesses.
First, we need to acknowledge there are two types of climate change:
- Natural climate change and
- Human induced climate change.
Natural climate change is never going away. It is part of nature and has been happening since the beginning of time.
Human induced climate change is also real. The only way to eliminate human induced climate change is to get rid of humans. I vote we don’t take that path.
Climate change is neither a “good” or “bad” thing. The planet cares less than zero about climate change. People, on the other hand, have a vested interest in keeping their environment neat, comfortable, and cozy. Therefore, the so-called “bad” climate change we wish to avoid is that which harms the human condition.
This opens a massive opportunity to increase financial wealth in a way that you can have your cake and eat it, too.
Let’s answer a few questions before we delve into the ways individuals and business can build wealth off climate change.
Will Climate Change Get Better?
Depends. And, define better.
Natural climate change will continue. Some will benefit humans and other life on Earth. Some natural climate change will harm life.
Manmade climate change is different. While humans are a part of nature, we can modify our environment extensively. Not all environmental modifications are “bad” by default.
On June 22, 1969 the Cuyahoga River started on fire. Decades of pollution finally reached a tipping point.
Lake Erie was also once considered dead.
Since the 1960s massive strides have been made to improve water, air, and soil quality. While these are not climate change, they are part of our environment. As we cleaned up our environment we discovered humans are also affecting climate. Something had to be done. Right?
Climate change will get better, defined as there being less human induced change. It is a worthy goal, to a point. People will always affect the environment and climate. If the adjustment is too great it can harm humans and wildlife. It is at these times where we need to make changes.
Will Climate Change Stop?
No! Climate will vary from natural processes as long as there is a planet Earth.
And as long as living creatures walk the earth the climate will adjust to reflect the activities of those creatures. People are one of those creatures.
The goal must be to limit human caused climate change when that change affects, or threatens to affect, human and/or wildlife health.
Why Climate Change Is Good
Climate change is neither “good” nor “bad.” Climate change is a thing. Just like a river or a mountain. Is changing the path of a river bad? From a human viewpoint it can be. But as part of the planetary environment it means absolutely nothing. Therefore, some changes to our environment and climate are good. At least for people. And may also be for some other forms of life. Yet, where there are winners, losers are possible.
Certain climate change may help plants grow better. Crops may do better in a (wetter/warmer/higher CO2) world.
Climate change that harms or merely inconveniences humans is a spur toward making better, less environmentally damaging, choices.
Climate change is NOT all bad. It is not all good either. What we really want is to make changes to our environment (and climate) that improves the quality of life for all involved, including animals.
Is Climate Change Good for People?
Now we can get down to the real issue.
Again, it is neither good nor bad. Humans easily travel between vastly different climates over very short periods of time. Unless the environment is extreme, people seem to enjoy a wide variety of climates. That does not mean all people enjoy all climates. Some like it cold, some warm, some wet, some dry. This is why labeling climate change as “good” or “bad” is so difficult. What bothers me might be your dream.
Is climate change good for our wallet? The answer is yes, but not in the way you may think.
A warmer climate can lower home heating costs during the winter in higher latitudes. A cooler climate can lower cooling costs in the summer in the lower latitudes.
Climate has tended to be cooler. When you realize we still live in an Ice Age it makes sense. Prior to the current Ice Age climate around the world was much warmer. There is nothing special about this current time or the time before the current Ice Age. It is just a normal part of the Earth’s cycles.
The changing climate in modern times is a spur to build new technologies to deal with the changes. That can be really good for people. It can also spur your financial wealth, too.
Consider this. Back in the 1990s I installed a geothermal heat pump in my farmhouse. When I bought my home there was no AC and the furnace was shot. Replacing the furnace and water heater, along with installing AC was very expensive. A geothermal was the right course. My energy costs, as a result, are a fraction of what I could have paid. The energy savings more than paid for the entire system.
Fast forward to today and that original geothermal heat pump is not so efficient anymore. I put in a new system with 25 years of additional technology since the first geothermal was installed, dropping my energy costs even more.
Without climate change and volatile energy prices there would have been no incentive to design a geothermal heat pump. Yet, the first heat pump technology was invented in 1852! What took so long to put this technology into action? There was not a lot of incentive to spend money developing the technology. In fact, the first commercial heat pump went into action in the 1940s.
Fast forward to the 1990s and heat pumps were still fairly unused, but a crazy backwoods accountant did the math and discovered the geothermal heat pump was good for his wallet.
Similar calculation are made by people when they buy a vehicle now. Is an EV better in the long run over an internal combustion engine (ICE)? It depends. But, for many, the answer is clear.
So when you ask if climate change is good for people, the answer is yes, but not the way most people think about fixing climate change.
And so you are clear about this, I never for a second thought about the climate when installing my first, and now replacement, heat pump. It saved me money. The end. Oh, it helps mitigate the amount of climate change I’m responsible for. So I get to feel good about myself which goes well with my full wallet.
Is Climate Change Good For Business?
Of course, if people are better off financially with newer technology that has a smaller environmental impact, they will buy those climate friendly products. And that is good for business.
Business has an incentive to spend on research and development. If the only selling point you have is climate change I am unlikely to swing and I actually think climate change is a serious issue!
I can hear the questions. Who will pay for this new technology? (Consumers.) Do we have to pay more for it? (Sometimes. But my replacement geothermal was less than a gas furnace.) What about taxes? (Yes, taxes are used to incentivize and to make new technology cheaper until economies of scale are reached.)
Addressing climate change has powerful opportunities for consumers and the businesses that sell to them. However, it can still be done wrong. Over-incentivizing with tax dollars is one way to do it wrong. Maybe a nudge, not a full push.
Some technologies will fail. Some will thrive. I was an early adopter of LEDs. The math was simple. It saved money. Some technologies are in the dust bin because they were not a step forward and something people wanted to buy. Think CFLs before LEDs. CFLs save money, but not as nice as LEDs, IMHO.
Not every business with a climate friendly idea will survive. We call that capitalism. Some business will fly! Others, not so much.
Think of EVs. I’m not convinced on the savings they provide and am waiting for more improvements in the technology. That and I like my 2007 Toyota Camry. Sorry. But Elon Musk made a fortune with Tesla EVs convincing people EVs will save you money and they are cool. Oh, as a bonus they save the environment.
Climate change is a problem because we are working toward an extreme that will harm plants and wildlife, plus make life less enjoyable for humans. Still, selling a wind farm on climate change is a losing game.
You have a better job of selling a wind farm, solar field, or other alternative form of energy production if people and businesses think it will line their pocket. Yes, it is nice if the project is gentle on Mother Earth. But at the end of the day, people put their wallet before Mother in almost every case.
Selling climate change as a problem will yield few results until people know what is in it for them. Humans are entitled. It is who and what we are as a species. Understand this and you know the way forward in reducing the climate impact from human activities.
Now if you will pardon me, I need to count the money I saved this month with my new geothermal unit.
