Environmental and Urban Economics: Carbon Pricing Will Help Railroads

[FayeforCure]

Carbon Pricing Will Help Warren Buffett Get Rich From Investing in Railroads
Warren Buffett's Berkshire Hathaway Inc (BRKa.N) (BRKb.N) will pay $26 billion to buy out railroad Burlington Northern Santa Fe Corp (BNI.N) in what the billionaire investor called a bet on the U.S. economy.

Did you know that freight trains have a fuel economy of 400 MPG? That's better than a freight truck. You don't have to be Jimmy Hoffa to anticipate that Mr. Buffett's bet on shipping logistics will be more likely to payoff in a carbon constrained world where carbon is priced. Here is the story. Now for cities such as Detroit that have ample railroad network capability --- will there be beneficial spillover effects? Are you getting ready to buy Detroit Real estate to get rich along with Warren Buffett?

http://greeneconomics.blogspot.com/2009/11/carbon-pricing-will-help-warren-buffett.html

[mtraininjax]

This is no different from what Carnegie did to create his empire of steel. He never owned the railroads, he sold them the steel for the rails, he sold the bridge companies the steel for the bridges, and sold the skyscraper companies their steel.

Flagler owned the hotels that his railroad transported people to in Florida. (Legitimate) Ancillary businesses designed to increase profits are good business. He is a great businessman, and a legitimate one, and a damn good role model for young kids of what they can become if they study hard in school.

[buckethead]

Is this suggesting that carbon credit/taxes will be used to benefit particular industries/investors?

Last year Mr Gore's venture capital firm loaned a small California firm $75m to develop energy-saving technology.

The company, Silver Spring Networks, produces hardware and software to make the electricity grid more efficient.

The deal appeared to pay off in a big way last week, when the Energy Department announced $3.4 billion in smart grid grants, the New York Times reports. Of the total, more than $560 million went to utilities with which Silver Spring has contracts.

The move means that venture capital company Kleiner Perkins and its partners, including Mr Gore, could recoup their investment many times over in coming years.

http://www.telegraph.co.uk/earth/energy/6491195/Al-Gore-could-become-worlds-first-carbon-billionaire.html

[CS Foltz]

I have not problem with anyone recouping their investment......not even Al Gore and his investors!

[buckethead]

Even if legeslation is being created to ensure recoupment of private investment?

[CS Foltz]

buckethead...........the powers that want to be still have inroads into the powers that are. I do believe in free market enterprise but no ...... not when the deck is being stacked deliberetly! Honest  investment deserves an honest return.