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Which industries destroy more value?

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Read aguanomics http://www.aguanomics.com/ for the world’s best analysis of the politics and economics of water Lots of people — as well as the Lorax — have opinions on this question, but this 2012 KPMG report has a nice visualization comparing annual earnings in an industry (EBITA) to that industry’s environmental destruction (“negative externalities”):

Although I am not too surprised to see oil and gas producing a net benefit (on purely financial terms), I am surprised to see that food producers would be bankrupt if they had to pay for the environmental damage they their customers cause.

(Note that earnings are based on prices and costs, not value, which is surely a multiple of most industry’s earnings.)

Bottom line: We should be paying far more for food (electricity, metals, mining, and so on) as a means of compensating for damage or as a result of shifting to more sustainable production methods.


Source: http://www.aguanomics.com/2018/05/which-industries-destroy-more-value.html



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    • raburgeson

      BS, I have left a link to a motor that uses no fuel. It produces no emissions. I have left a link to it several times. Who stole the car it was in and all the related lab equipment and prototypes. Who killed the inventor? Who ever it was is a enemy of all mankind. We should not be paying for energy at all. We should not be standing in line to buy. We should not be worried about claims of rarity. We should be far more worried about the piles of radioactive material waste piling up that they do not have the ability to store safely.

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