Friday, May 31, 2019

Economic and Regulatory Opportunities!

Hey guys, so below you'll find two opportunities based on economic trends, as well as 2 opportunities based on regulatory trends (or technically, the lack thereof in concert with the inevitable development of them). 

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2 Economic:


With cap and trade policies becoming a more ubiquitous tool for states and countries to mitigate emissions problems, the proposed Green New Deal and its future iterations could set the groundwork for carbon certificate companies. These companies sell carbon certificates, which are allowances to emit carbon dioxide. They are able to sell these by providing projects which intake the same carbon as is being allowed through the purchase of the allowance, netting a carbon neutral effect. I learned about cap and trade through a Crash Course video on youtube that discussed environmental economics. I believe that this would be a good way to support a transition into alternative, renewable energy sources. Customers of a firm which sold these certificates would fall into two categories, firms in a cap and trade system, as well as consumers that want to decrease their carbon footprint. This opportunity may be difficult to exploit in the sense that it requires projects which effectively capture carbon, which is not the most cost effective process. This presented itself as an opportunity to me because I do work with algae and the extraction of oils for biofuel production.


With the world depending on oil for everything from energy needs to chemical synthesis for things like drugs and plastics, the carbon economy isa booming. The problem is that it is unsustainable. With limited oil reserves, we are going to eventually run out of it, and when we do - environmental problems aside - there will be an economic crash unlike any before it. The single most important resource after essentials like food and water, the world economy relies on it for growth. Without a transition away from the carbon economy into renewables for energy and biodegradable plastic production, investment will not be isolated enough to support the crash. I’ve hear talk about this issue before on news networks and read about it on blogs that I follow, but perhaps the most contributory reason is my work where I communicate with students about renewable energy in my work for the Tangency Foundation. Sustainable research firms have an opportunity to develop alternative energy, chemical and plastic production for sale to consumers and businesses, as well as states with oil imports. My understanding of economics, as well as my experience in finance classes, it seems logical to me that the present value of a renewable as opposed to a limited resource is greater because you have a perpetuity and an annuity with similar rates. 

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2 Regulatory:

A few papers published in law journals detailing evidence of new legal standing for environmental concepts is showcasing a transition to a legal framework for Rights of Nature jurisprudence. The proposed Lake Eerie Bill of Rights was one of the first large-scale propositions, but it was too avant-guard and failed. However, Tamaqua Burough was the first city in the States, as well as the world, to codify Rights of Nature in legislation, and has been successful in the years since. I believe that this may present an opportunity because firms which cause environmental damage could hire a firm which mitigates environmental damage by finding ways to prevent it, and to address it when it occurs. I feel the opportunity could be exploited through environmental impact assessments and environmental engineers with and a budget for clean up supplies. Perhaps even an inventory checklist which helps keep track of all supplies used and ways in which those supplies could adversely affect the environment. My work with the nonprofit environmental group the Tangency Foundation I am exposed to lots of talk about the failures of constituents to get their representatives to entertain these policy ideas.



As research into planetary travel develops, legislation follows. Because international policy is found lacking concerning resources in space, it seems that there can be a great potential for ROI in the exoplanetary resource area. Resources will be needed to develop moon bases and colonization of Mars, so firms that do research on efficient resource extraction could find themselves absorbed by space flight firms like SpaceX, and providing a lucrative opportunity to sell to private companies in the future, or to the International Space Station. There are definite and grand barriers to entry in this market, however there are no key players yet, meaning that the inevitable rise of this space will be up for the taking, and since there is a lack of regulation now, lobbying of relevant parties early on could definitely prove a worthwhile investment. I came across this idea when I was watching an advertisement by NASA showcasing their effort to get to Mars by 2024.

3 comments:

  1. While all of your opportunities are fleshed out and well written, I think we were supposed to put down where we got the issues from and a link to the if URL where we found those opportunities (so as to not compromise academic integrity). The customer bases aren't really that fleshed out either, I found it very helpful to look at the link that the teacher provided on examples of excellent student submissions - it's a Google doc and an excellent framework for assignments. Other than those minor details, I think you did a wonderful job finding opportunities in the economic and regulatory world.

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  2. Hey Tomer,
    I think you did a great job. I really like your second economic opportunity. Oil and gas are the most important resources that power our society on a daily basis. I think there is still an ample amount of oil, especially untapped reserves that we will soon drain...But when we do run out, it will be a disaster and we will have another recession. I couldn't imagine living without oil/gas.

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  3. Hey Tomer,

    I couldn't agree more with your views. Many areas lack motivation and proper teaching which leads to them finding school and education useless. Unfortunately, there's a lot of bright minds in these areas that, with the right knowledge could truly change the world. Actively trying to get students engaged in STEM courses opens up the world for a lot of new minds and new points of view that could see things we don't normally see. Personally I think we need more politicians with a STEM background that way they can make informed decisions with facts and research to back it up rather than just what they do or do not believe in.

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