Moreover, the question of whether and over what time frame negative (positive) externalities might be eliminated (rewarded), or how these externalities are an element of the company’s business model, is up for debate. For example, companies that actively invest in technologies to reduce their greenhouse gas (GHG) emissions or to develop products to help their customers reduce their GHG emissions, make a bet on regulators imposing a tax on GHG emissions. Similarly, firms that invest in technologies that will allow them to develop solutions to reduce water consumption make a bet on water.
