A recovering ozone layer: A lesson in long term investing from Mother Earth
Many of you out there are probably aware of that one of the most dramatic effects of releasing pollutants into our atmosphere is the destruction of the ozone layer, which would allow harmful ultraviolet radiation to reach our planet. Thankfully, after 30 years of legislation and environmental campaigning, it appears that the ozone layer is recovering! This brings us to two important lessons for today:
1. What is ozone? And what made it disappear in the first place?
Ozone is a form of oxygen made up of three oxygen molecules instead of two. It naturally forms in the stratosphere (a layer in Earth's upper atmosphere) through interactions between ultraviolet radiation and normal oxygen. The accumulation of ozone at this altitude is a good thing, as it prevents these ultraviolet rays from hitting us in the face! I don't know about you, but I'd rather not increase my risk of skin cancer.
Figure 1. The sandwich that saves our skins
On the other hand, ozone can also be a bad thing. At ground level, ozone forms from the interaction of pollutants such as oxides of Nitrogen (NOx) and volatile organic compounds (VOC). This is a bad thing, as breathing in ozone can reduce lung function. Yikes!
In the 1970's, it was discovered that chemical compounds called chlorofluorocarbons (CFC)s reacted with atmospheric ozone and destroyed it, leading to the so called "hole in the ozone layer". You may be familiar with a more proprietary CFC produced by DuPont called freon. After this realization, leaders around the world signed a document called the Montreal Protocol, effectively phasing out CFCs. It took 30 years, but it seems like the ozone is finally rebounding!
2. The environment is worth it.
When the protocol was signed, it generate a pretty sizable negative response from the CFC industry, including DuPont. They claimed that the science "wasn't conclusive" and that government regulation on CFC emissions would kill jobs. Sound familiar? Of course, neither of these things proved true and it's estimated that we've prevented millions of cases of skin cancer because of a global ban on CFCs. The point here is that while the economic benefits of environmental protection may be difficult to see in the short term, the global health gains are potentially immense. So before we pick a path that will put more change in our pocket, perhaps we should consider solutions that add more years to the lives of our children instead.
After all, what would Captain Planet do?
http://www.youtube.com/watch?v=VcJI87u3DoQ