![]() ![]() There are two ways to achieve Biden’s net-zero emissions goal: make oil expensive through taxes or make alternatives cheaper through subsidies, Xie said.Ī tax on carbon emissions is a hard sell to Americans who are already making economic sacrifices during the pandemic. When mature energy markets are cheap, there is less of an incentive to promote alternative energy. And Chinese subsidies flooded the world with cheap solar panels, pressuring U.S. Obama’s clean energy initiative competed with a boom in shale that sent natural gas prices plummeting. “The Obama administration invested US$90 billion in green technology, but the effect on equity prices was modest and short-lived.” Xie pointed to the experience under President Many of the listed companies are too small to be eligible for institutions, the study said. Energy Select is up 16.6% so far this year while iShares clean energy is up 6.8%.Ī study released last year by Imperial College London and the International Energy Agency found that while clean energy was outperforming fossil fuel companies, and with lower volatility, the sector still hadn’t attracted enough support from equity investors. The Energy Select ETF’s biggest holdings, at more than 20% of the portfolio, areīut a recent rebound in oil prices from a low last year is giving Big Oil the advantage lately. Solar panel maker Enphase is up 391% over one year. Plug, the maker of hydrogen fuel cells, has soared more than 1,300% over the last year as auto makers embrace electric vehicles. (PLUG), which is its biggest holding at 10%, and ![]() The iShares global clean energy ETF includes hot stocks like Green energy has been a favorite of investors, pushing theĮxchange-traded fund (ICLN) up 124% over the past year while the Its shares are up 51% over the last year, compared with the 16.5% one-year gain in the S&P 500. (GM) recently said it aims to make only electric vehicles by 2035. If Biden gets his climate plan entirely, the biggest beneficiaries would be auto makers, the construction sector, and zero-emission energy stocks in the wind, solar, nuclear and hydropower sectors. On the same day, President Biden said the Energy Department would offer $100 million to fund low-carbon energy technologies. 11, the Congressional Budget Office projected the 2021 fiscal deficit to be $2.3 trillion. Investors looking for a dramatic long-term boost from green energy investments “may want to rein in their expectations,” Xie said. But with the federal deficit at a record high, broad Republican backing isn’t likely, said Gavekal Research’s Yanmei Xie. ![]()
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