Answer to Question #225852 in Finance for Anisha Radhika Kum

Question

An investment firm supports the coal-mining industry with infrastructure funds and also invests in tree plantations for paper-pulp production. Are the environmental ‘goods’ attached to the plantations cancelled out by the environmental ‘bads’ of the coal mining?

Answer 1

Environment goods are attached to plantations. The goods are actually derived from the plantations. The mining of call tends to trees which are part of the environment. The mining usually bring up wastes that are exposed to the air, hence environmental ‘bads.'