ESG & Investing

Milton Friedman’s Alma Mater Exposes Huge Cost of Emissions

  • Damage is valued at close to half firms’ operating profit
  • Study comes as fossil fuel subsidies hit record $7 trillion

Hutchinson Courtyard and Mitchell Tower at the University of Chicago.

Photographer: Beata Zawrzel/NurPhoto/Getty Images
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A study published by academics at the University of Chicago has found that corporate emissions are undermining prosperity.

The damage caused when publicly traded companies emit greenhouse gases is equivalent — on average — to about 44% of operating profits, according to an analysis by Michael Greenstone and Christian Leuz of the University of Chicago, and Patricia Breuer of the University of Mannheim.