Why the Cleantech Market Is More Volatile Than Other Markets
Cleantech, an abbreviation for clean technology, refers to financial markets, funds, indices, and investments inclusive of companies that enable efficient use of resources that occur naturally and reduce the impact on the environment during the production of these natural resources. These companies do this through activities like clean energy or clean production. Cleantech is more volatile than the market in general because of the increase in environmental concerns. This is because there is much need for natural resources and hence many people exploit these resources, and during exploitation, some of these resources lead to air pollution.
Therefore, Cleantech needs to come up with some technology that will help clean the air, as failure to do this would lead to many health effects as well as depletion of the natural resources of the country. In addition, there are no regulations on the conservation of the environment, and hence many environmental problems may arise, such as the destruction of natural reserves. This, in turn, may lead to changes in weather conditions which may then lead to low productivity.
Moreover, the BP oil spill that occurred in Gulf led to the need to clean the oil, and even if the companies have been trying to do so, people still argue that it is not well done. This poses a great need for Cleantech to come up with a technology that will enable the cleaning of the oil as it is not possible to detect when another spill may occur. Moreover, people continue to dispose of waste, and as a result, Cleantech ought to come up with new technologies for managing the waste like sewage treatment and solid waste management, among others.