Fossil fuel divestment in a market economy

The Ontario Teacher's Pension Fund, (over $150B CAD), is called upon to divest its fossil fuel assets. Shouldn't it instead 'strand' those assets, since divestment just puts these assets out onto the market, to be purchased by another. (I want to 'divest' of my emission spewing car so I trade it in on an electric, but my old car will just be driven by someone else now, hence no improvement in the overall emissions situation). And wouldn't market forces act against mass divestment by simply reducing the price of such assets? Would a better option be for the fund to hold these assets within for instance a perpetuity trust that will restrict their sale against fuel uses?

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  • John-Paul Warren
    published this page in Ask Prof. Wolff 2017-05-02 10:52:55 -0400