Here is a query from a loyal MR reader:
If you had net assets in the six figures, and were very concerned about global warming (some combination of wanting a good life for your children, and believing human civilization is valuable over a time horizon longer than your lifetime), how would you invest those assets?
Some thoughts I’ve had:
Invest in renewable energy companies: Extremely hard industry to figure out where your money would have most value added. Not easy to invest in Tesla.
Invest in water utilities: a lot of the problems with water are regulatory rather than investment.
Buy a house in an urban center: NIMBYism means that this likely just crowds out someone else, with unclear impact on carbon reduction
Housing ETF: Might have more political impact than personal purchase but difficult industry to figure out.
Give money to politicians: Does money actually impact political results?
Buy a house with access to water and a lot of guns: Not an ideal solution
Quit your job and become an activist: seems to have been moderately effective in recent years.
What non-complacent answers am I missing? How would your answer change if someone had 5 figure assets? 7 figures? 8 figures?
My answer is pretty simple: invest in fighting indoor air pollution in developing nations. (Here are further research sources.) The burning of wood indoors, for instance, leads to pretty significant carbon emissions, as does the burning of charcoal, dung, and plant residue. These burnings are also harmful to human health, accounting for perhaps as many as four million (!) deaths last year, maybe more. Some of the problem is inadequate ventilation, but also safer and cleaner gas stoves, among other technologies, represent a better and environmentally friendlier option for many of these households. Pilot projects in India, Kenya, and China have shown positive results.
The nice thing about this target is that you can save lives even if global warming can’t really be stopped. And rather than (implicitly or explicitly) taxing poor people in poor countries, you are helping them out. The broad steps one wishes to take are consistent with these locales become wealthier rather than poorer regions. Here is a paper on indoor air pollution and carbon emissions in Nigeria.
That said, I do not know which are the best non-profits or commercial projects in these areas — could any of you help out in the comments?
Another option would be to continue to apply pressure to Indonesia to limit the burning of their forests: “Indonesia’s carbon emissions from the 2015 forest fires were bigger than the daily emissions rate of the whole European Union, a study reveals.” This would involve working through international organizations and perhaps NGOs in Indonesia itself, again your suggestions are welcome.