If investors are rational, what does it mean to climate change?

If investors are rational, it means climate change is real and people are urgent to do about the climate issue. Why do investors invest in new energy?  Investors’ decisions are based on several factors, and the primary factor is the profit concern that investors only invest in the projects which they believe can make profits; of course, investors can make investment decisions based on their religious belief and moral judgement, for example, there are some funds that specifically target Muslim clients and some funds are only investing in clean industries.

The investment in clean energy industries can be evaluated in several ways. On one hand, the clean energy industries are morally right to invest. When there is not any significant difference in terms of profitability, investors definitely want to invest in the projects which seem more morally correct. On the other hand, the clean energy industry has to be a profitable investment project. For the clean energy industry to be profitable, there is one primary foundation which is the climate change is real and our human beings have to change the current situation. Only if the climate change is real and our human beings have to change the current situation right now, then it is sensible to develop new energy. Moreover, it is also sensible to develop new energy if the fossil fuel is about to run out, as the industries have to find an alternative.

Overall, sometimes, it is possible to use investment as a judgement of social opinion.