Climate Quote by Charlie Munger
“I know just enough about thermodynamics to understand that if it takes too much fossil-fuel energy to create ethanol, that's a very stupid way to solve an energy problem.”
About This Quote
Source Speech: Annual Shareholder Meeting, Berkshire Hathaway, 2020
If producing ethanol consumes more fossil fuel than it saves, the process is counterproductive and wasteful.
In simple terms: Ethanol production can waste more energy than it provides.
Avoid energy solutions that cost more than they save.
Themes
Mood
Type
When to use this quote
- fuel production
- policy making
- investment decisions
Key Concepts
Questions to Reflect On
- What metrics should evaluate true energy benefit?
- How can policy incentivize genuinely efficient solutions?
Alternative biofuels may have hidden costs; market pressures can obscure true efficiency.