About
Articles by Tom
Contributions
-
What are the most significant economic policy changes that impact a company's financial performance?
Interest rates are one thing, carbon risk is another. While it's been possible for folks to kick the can down the road on carbon exposure, and there are a number of large investors backing away from reporting/investment standards, that's no longer the case. One driver is emerging software (Emitwise, etc) capable of shining a light on Scope 1 through 3, another is a growing awareness of all partners (customers, suppliers, voters) that carbon risk matters. Policy has led here in a few countries (eg UK) and lagged in others, but the next decade will see a global levelling on investor/customer expectations which will drive policy from an unexpected direction: WTO as climate hawk, enabling jurisdictions to level risks across markets.
-
You’re struggling to make sense of your economics continuing education. What’s the best way to approach it?
I return to the single most important (impactful) macro-economic variable of the 21st century - that's climate risk, and the associated need to transition to a low-carbon economy. The ways in which economists traditionally describe macro-trends no longer apply - attempts to do this via DICE/RICE (Dynamic/Regional Integrated model on Climate and Economy) fell flat. Meant as a meaningful way for economists to educated themselves, along traditional lines, about this macro-change they've achieved the opposite: enabled economists to continue to think of climate risk as a change to an existing worldview. It is not that (I've criticized it in Waking the Frog, Ch 4) and the need to bring bottoms up approach to risk on an asset level is required.
-
How can trust be used to improve economic sociology theories?
Trust is normally dependent on past performance; any expert, model or theory is back-tested to ensure it would account for what we see. Economics has the paradox that the past is no longer (was it ever?) a basis for what we'll see going forward. Climate risk, in particular, ensures the future will be nothing like the past. Actuaries have already run the alarm bell, as a group committed to quantitive analysis. Hence, trust will now shift to economists better able to engage on our ongoing (n=1) experiment - that will require substantive revisions to how uncertainty is incorporated into narrative, models or theory.
-
You're an economist who wants to stay relevant. What do you need to do?
The main thing is to be better able to link systemic uncertainty, often best described in qualitative terms (eg climate risk), to quantitative analysis. When the past is no longer a predictor of the future, traditional actuarial and quantitative approaches no longer apply. A decision to continue to produce quantitative analysis may hold, or it may be better to turn to a narrative approach (see Narrative Economics by Shiller, or Ch 4 of my own book Waking the Frog).
Activity
-
We must not fall for COP29 Azerbaijan plans to start a $500mn fund with the money of #fossilfuel industry to fund the energy transition - This fund…
We must not fall for COP29 Azerbaijan plans to start a $500mn fund with the money of #fossilfuel industry to fund the energy transition - This fund…
Liked by Tom Rand
-
We're excited to welcome 3 new team members this week! Tony Hsu - joining the NYC sales team focused on rentals. Matt Harnett, MBA, MFA - also…
We're excited to welcome 3 new team members this week! Tony Hsu - joining the NYC sales team focused on rentals. Matt Harnett, MBA, MFA - also…
Liked by Tom Rand
-
We ended the first half of the year with a bang!⚡ Read our Q2 newsletter to see the significant progress that our growing team has made over the last…
We ended the first half of the year with a bang!⚡ Read our Q2 newsletter to see the significant progress that our growing team has made over the last…
Liked by Tom Rand
Experience & Education
Languages
-
French
-
More activity by Tom
-
"Do not follow where the path may lead. Go instead where there is no path and leave a trail." —Ralph Waldo Emerson This week I was fortunate to…
"Do not follow where the path may lead. Go instead where there is no path and leave a trail." —Ralph Waldo Emerson This week I was fortunate to…
Liked by Tom Rand
-
“Hydrostor’s longer duration storage tech is ‘bankable’ today but ‘not every market is ready” said our CEO Curtis VanWalleghem, who recently spoke…
“Hydrostor’s longer duration storage tech is ‘bankable’ today but ‘not every market is ready” said our CEO Curtis VanWalleghem, who recently spoke…
Liked by Tom Rand
-
I am happy to report that I am now a Professor of the Practice at the Stanford Doerr School of Sustainability and Stanford Law School. It is…
I am happy to report that I am now a Professor of the Practice at the Stanford Doerr School of Sustainability and Stanford Law School. It is…
Liked by Tom Rand
-
Last week I visited PEI. Irving Oil is a chain throughout the east coast. I was surprised to find their signs saying "clean regular and clean…
Last week I visited PEI. Irving Oil is a chain throughout the east coast. I was surprised to find their signs saying "clean regular and clean…
Liked by Tom Rand
-
Yes, it takes the Brits a few hours longer than Canadians and Americans to count the votes on election night. But the 🇬🇧 UK puts 🇨🇦 Canada and…
Yes, it takes the Brits a few hours longer than Canadians and Americans to count the votes on election night. But the 🇬🇧 UK puts 🇨🇦 Canada and…
Liked by Tom Rand
-
I get a little triggered whenever I see environmental NGOs in the global north opposing carbon credits. After all, without carbon credits, we have…
I get a little triggered whenever I see environmental NGOs in the global north opposing carbon credits. After all, without carbon credits, we have…
Liked by Tom Rand
-
A smart young engineer Henry Gould has reviewed The Case for Climate Capitalism: Economic Solutions for a Planet in Crisis ... Early on, he picks…
A smart young engineer Henry Gould has reviewed The Case for Climate Capitalism: Economic Solutions for a Planet in Crisis ... Early on, he picks…
Shared by Tom Rand
People also viewed
Explore collaborative articles
We’re unlocking community knowledge in a new way. Experts add insights directly into each article, started with the help of AI.
Explore MoreOthers named Tom Rand in Canada
5 others named Tom Rand in Canada are on LinkedIn
See others named Tom Rand