Monthly Archives: January 2013
Factors to be considered for Green investment
Having said that green investment are good mode for generating revenue, one should take consideration in element of Green investment which are given below and they are basically based on the financial perspective
- Returns expected from the green companies – Look current and past history regarding the profit and loss account statement of the companies & check for the balance sheet too. Dividend per share also to be considered.
- Risk assessment on ecological view – Some of the green energy like solar panel has some negative impact (because of the lead content in the arrays). So in future there is possible of reduction in production or trend change.
- Correlation of green investment profit with other investment methods – It is important to compare the growth rate of green energy company versus other company to trace out the profit margin deviation. This will give an idea about the total amount of profit you can earn in certain period of time.
- Long-term risk like nature Catastrophic action on the green ideologies industries – Some method of clean energy production methods such as hydro power generation may face catastrophic event like flood or drought which make output lower.
- Social and Political factor and future policy on green technology – Watch for the political condition of region and people awareness about the social change.
If all these aspects are taken in to account for investment in green industries, apparently your investment will be safe and yielding more economic benefits for you.