by Fabian Leonhardt
The answer to this question is simple. The production factor nature is more or less free. Regulaters and economic theory simply did not take care of the fact that this will lead to an exploitation of nature by markets in the long run. Markets will not be able to solve this problem at least not without high costs for future generations.
The dilema can only be solved according to econmists by privatizing nature. This is a very theoretical argument, which would probably not work in the real world and might result in further negative effects for future generations.
What we need is a global institution or a worldwide legal framework insuring that nature has its price (good book by Prof. Radermacher Welt mit Zukunft on this).
In the long run we will see an exponetial increase in the costs of nature as a production factor for society and next generations. This will give companies focusing on sustainability to date a strategic advantage and might provide good investment opportunities.
On the other hand before we will see the clean tec market becoming the next kondratieff cycle a bubble in this field over the next 10 years is highly likely as
So be careful a good company is not a good investment...
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