September 12, 2006
Is the market responding?
Economists argue that when financial opportunities arise businesses will step up to take advantage of them. Mike Walden says this is exactly the case today with the growing demand for alternative energy sources.
"There’s an old saying that to know where the businesses are you should simply follow the money, and clearly many people today are interested in using environmentally clean, non-oil energy sources," says Dr. Walden, an economics professor at N.C. State University.
"And so a lot of money is actually being invested in those nontraditional energy sources. For example, just last year the investments in these sources increased 62% from $30 billion to $49 billion.
"And a lot of smart business investors –- people like Warren Buffett, Bill Gates and Richard Branson -- are now investing in these new sources and technologies.
"This is again how the market works: When the price of oil has gone up and become very expensive, people and business investors look for alternatives."
Posted by deeshore at September 12, 2006 02:59 PM