This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Policy Shifts the World Bank Says Will Save the World

Stocks in this article: BTU TSLA BRK.A SCTY

India and China would see the largest benefit from these improvements, which in total would save an estimated 20,000 people from premature death from air pollution per year in the six regions, with another 1,300 lives saved outside the regions.

Government policies to reduce emissions from the industrial sector, particularly cement, chemicals and iron and steel sectors, make up the second case study. The report suggested moving away from high-polluting fuels like coal to natural gas and biomass and increasing efficiency in motors, kilns and coke ovens.

In particular, a project of better waste management systems in Brazil could be scaled up and would produce lower methane pollution, with waste being used to generate electricity, and also improve public health. Brought to national scale, the project in Brazil alone would create between 44,000 and 110,000 jobs, prevent the premature death of thousands of people, and increase crop yields by 550,000 to 1 million tons, the report estimated.

The outcomes of this case study globally see 58,000 lives saved per year, mostly in India, with China seeing the largest reduction in emissions. The European Union, along with China, India and the U.S. would also benefit from increased crop yields.

Case study No. 3 outlined the effects of improvements in energy efficiency for buildings, reducing energy consumption worldwide. The study assumes more efficient appliances, electronics and equipment, better insulation and improved heating, cooling and refrigeration systems. The study assumed savings from new construction and existing buildings retrofitted with new technology.

The report used as an example the deployment of clean-burning cooking stoves in rural China. The report estimated a 20% government subsidy from 2015 to 2020 would be enough to establish a self-sustaining market for "fuel-efficient, lower-emitting cookstoves and solar cookers," allowing households to switch from solid-fuel based stoves by 2030. A $400 million subsidy supplemented by $1.2 billion in private sector investment could save over a million lives over 20 years, the report said, merely as a result of reduced outdoor air pollution; indoor pollution benefits aren't estimated but assumed to be greater.

Across all six regions, the reports suggested improvements to buildings would save an estimated 24,000 lives a year from 2030. Households in Mexico can achieve greater energy savings, at lower cost, than in other countries, the report said, thereby lifting the standard of living, consumer spending and the nation's GDP. Mexico also stands to gain the most in jobs relative to its labor force.

Were this report to become policy in these nations, the biggest loser, as in the EPA measures, would be international coal interests like Peabody and utilities with outdated plants. Peabody, the world's largest coal producer, is invested to some degree in clean energy efforts in China, but not enough to outweigh its global investment in mines and coal sales.

The big winners would be natural gas companies exposed to India and China, particularly Russia's state-owned Gazprom, which has a deal for a Russia-China natural gas pipeline, and companies heavily invested in clean technologies, like Berkshire Hathaway, which has $15 billion invested in wind and solar within the U.S. electric grid.

Companies in the list that would benefit from U.S. improvements would include electric carmaker Tesla and the already-heavily subsidized U.S. solar stocks, including Tesla's sister company Solar City (SCTY). Indeed, if Tesla CEO Elon Musk wants to change the world some more, he might create a separate company that builds reliable, efficient mass transportation systems at least as energy efficient as those described by the World Bank. Bus companies would clearly benefit from a sudden ramping up of BRT systems around the world. Chief among them would be European companies Volvo (VOLVY) and Daimler (DDAIF), both of which have thousands of buses deployed around the world and are advertising more fuel-efficient designs.

However, the largest profitable potential from this report is clearly in the camp of the local entrepreneurial enterprise. Those businesses with established operations in a particular region and are willing to dedicate the time and money needed to bring these improvements to market have the most to gain.

Unfortunately, all potential benefit relies on the implementing of clear policies by the world's governments, which the World Bank can encourage but can't guarantee.

Calpine Sees Risk to Geothermal as Green Energy Grows

Why Alliance, Cloud Peak Could Soar as Coal Sector Crashes

-- Written by Carlton Wilkinson in New York

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs