Kentucky

Central Appalachia is home to the third-largest concentration of forest carbon offsets traded on the California carbon market. But while these projects bring new investments to Appalachia, most people in Appalachia are not benefiting. The effect of this new economic activity is evident in the Clearfork Valley, a forested region of steep hills and meandering creeks on the Kentucky-Tennessee border. Rural communities here once relied on coal mining jobs. As the mines shut down, with the last closing in 2022, the valley was left with thousands of acres of forests and strip-mined land but fewer ways to make a good living. Today, corporate landowners and investment funds have placed most of that forest land into carbon offset projects – valuing the trees for their ability to absorb carbon dioxide emissions to help protect the climate. These carbon offset projects can be lucrative for the landowner, with proceeds that can run into the millions of dollars. Companies subject...

The Federal Reserve raised interest rates again on May 3, 2023, by a quarter point, making it the Fed’s 10th rate hike since March 2022 in an ongoing fight to tame inflation. These rate hikes have been reverberating through the economy, raising prospects of a recession amid heightened concerns about the fragile state of banks. The rate hikes are also rattling sustainability-focused investing, better known as ESG investing. The trend toward ESG investing, which puts pressure on companies to meet environmental, social and governance benchmarks, has almost redefined asset management over the past decade. ESG funds today are a multitrillion-dollar market. However, the high uncertainty around interest rates today, along with the prospects of a looming recession and a political backlash, has put the future of ESG investors at a crossroads. I specialize in sustainable finance, and my recent work has documented the impact that tough economic times can have on ESG investing dema...

The year 2022 will be remembered across the U.S. for its devastating flooding and storms – and also for its extreme heat waves and droughts. The nation saw 18 disasters that caused more than US$1 billion in damage each, well above the average. The year started and ended with widespread severe winter storms from Texas to Maine, affecting tens of million of people and causing significant damages. Then, March set the record for the most reported tornadoes in the month – 233. During a period of five weeks over the summer, five 1,000-year rainfall events occurred in St. Louis, eastern Kentucky, southern Illinois, California’s Death Valley and Dallas, causing devastating and sometimes deadly flash floods. Severe flooding in Mississippi knocked out Jackson’s troubled water supply for weeks. A historic flood in Montana, brought on by heavy rain and melting snow, forced large areas of Yellowstone National Park to be evacuated. In the fall, hurricanes Ian and Fio...

The summer of 2022 started with a historic flood in Montana, brought on by heavy rain and melting snow, that tore up roads and caused large areas of Yellowstone National Park to be evacuated. It ended with a record-breaking heat wave in California and much of the West that pushed the power grid to the breaking point, causing blackouts, followed by a tropical storm that set rainfall records in southern California. A typhoon flooded coastal Alaska, and a hurricane hit Puerto Rico with more than 30 inches of rain. In between, wildfires raged through California, Arizona and New Mexico on the background of a megadrought in Southwestern U.S. that has been more severe than anything the region has experienced in at least 1,200 years. Near Albuquerque, New Mexico, a five-mile stretch of the Rio Grande ran dry for the first time in 40 years. Persistent heat waves lingered over many parts of the country, setting temperature records. At the same time, during a period of five weeks between...