How great is the environmental threat of fossil fuels? Is it overblown?
There is a spectrum of answers. Some people say fossil fuels are a huge threat. Other people say they pose none. Dow’s position is somewhere in the middle. Fossil fuels have problems. They are a finite resource, and some day they will run out. There is also the fact of climate change. Because of these issues, we have to begin to make a transition to alternative sources of energy. However, the threat is not so great that we have to make this transition in an uneconomic way. Right now, there is no economic incentive to transfer to alternative energies since fossil fuels are very effective. This is why we need to work to make the economics of the energy market reflect the true economics, including the real price of carbon. This should include, for instance, working to remove split incentives like the ones that prevent rational choices when investing in energy efficiency. For example, if you are buying a home and I offer to instal energy-efficient windows in your house, you have to bear th
