How Climate Change Will Affect Your Investment Opportunities

Climate change is impacting business, say Nobel economists.
  • Sustainable technology stocks have already benefited from climate change media coverage.
  • Climate change is also creating opportunities in construction and real estate.
  • The Nobel prize for economics went to researchers focused on sustainable economic growth, factoring in climate change.

Climate change, like most natural, social or political upheavals, represents an opportunity for investors. Sustainable technologies, such as those used in electric cars or clean energy, have already boosted stocks like Tesla (TSLA) and NextEra Energy (NEE). But there are more opportunities on the horizon.

Click to read about how Warren Buffett proved “bad news is an investor’s best friend.”

Consider Investing in These Industries as the Climate Changes

Industries that are directly dealing with the effects or prevention of climate change could be good selections for your investment portfolio. If you want to leverage the latest Nobel prize-winning research into climate change’s effect on economics and business, you could consider investing in these industries:

Sustainable Agriculture

When making investment decisions, note that the focus of climate change has shifted from preventing it to managing its consequences. In the case of agriculture, companies are researching new ways of producing food as the environment becomes more hostile to traditional methods.

Coastal Region Businesses and Construction

Companies that provide goods and services related to seawall construction, desalination, and sustainable agriculture could benefit from the effects of and response to climate change.

Find Out: How Much Extreme Weather Costs Taxpayers

Insurance

Insurance companies might benefit from increased concern about weather events like hurricanes and tornadoes. Flood insurance is likely to see increased demand as traditional homeowners coverage doesn’t cover flooding.

Real Estate

In the real estate market, oceanfront property might see its value decline, and inland real estate could gain in value.

Leverage Nobel Prize Economic Research on Growth Amid Climate Change

The Nobel Memorial Prize in Economic Sciences was awarded to William Nordhaus and Paul Romer in Oct. 2018 for their research on the ways in which climate change and technology have affected the economy. The two will share the Nobel prize amount of 9 million Swedish krona, or about $990,000.

Nordhaus created a model that assesses the impact of climate policy interventions, like carbon taxes, on the global economy. Romer theorized that new ideas and technology help drive economic activity.

Consider These: 9 Fastest-Growing Industries to Invest In

The debate about climate change continues, and some people downplay its significance. Most investors don’t want to be seen as taking advantage of a serious situation, but this kind of research can help inform investing decisions related to changes in business development, economic development and emerging technologies. Experts agree that climate change is here, so now is the time for investors to get in on the ground floor of technologies that could offset climate change consequences or prevent further negative impacts of climate change.

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