Universities are under pressure to divest from fossil fuels. Yglesias spells out the main reason to support this goal:
Fossil fuel companies need to hire staff, they need to lobby politicians, and they need to contract with other companies for services. A world in which it was universally accepted in polite society that fossil fuel companies are problematic and respectable people should avoid dealing with them would be a very different world from the one we live in. Fossil fuel firms would find it challenging to recruit talented staff in a cost-effective way, and would have trouble securing favorable tax and regulatory treatment from the government. This is a real risk, and it’s why no company or sector likes to see high-profile divestment campaigns lobbed against it.
The most famous divestment campaign, waged against the government of apartheid South Africa, is a case in point. It is unlikely that divestment as such had an important impact on South Africa’s corporate sector or financial markets. But it was part and parcel of a larger ongoing campaign that left South Africa socially and economically isolated from the world. That overall isolation did have an impact, and divestment was an important part of that isolation insofar as it gave campaigners concrete asks that were smaller in scale than whole national-level sanctions.
But McArdle dismisses the divestment movement:
In my opinion, activists have selected this issue not because it is useful, but because it is feasible. Unfortunately, it is feasible precisely because it will make no difference in anyone’s consumption of fossil fuel. If it were going to actually be personally costly to members of the community, it would suddenly become very difficult indeed.
Daniel Gross agrees that divestment won’t do much good. What he recommends instead:
Though it resisted divestment, the University of California is pursuing this more difficult path with energy. It’s a giant system, with 10 campuses and five medical centers, 233,000 students, about 190,000 employees, and thousands of buildings. Powering these facilities and people takes about 250 megawatts of electricity generating capacity, roughly that of a “medium size city,” as the university notes.
Right now, the system’s electricity supply is largely free of coal, if not fossil fuels. It gets about 73 percent of its power supply from natural gas sources. But the University of California is seeking to slash its emissions to 1990 levels and wants to become “carbon neutral” by 2025, which, it says, would it make it the first research university to do so. (Here’s the plan.) That’s an ambitious goal—one that the town of Palo Alto has already achieved. And like Palo Alto, which owns a big chunk of a hydroelectric plant, the University of California is becoming more directly involved with energy markets.
Bill McKibben defended divestment last month.
The Dish 