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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.” quote by Charlie Munger
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“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.”

Charlie Munger

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.

Key Takeaway

Avoid energy solutions that cost more than they save.

Themes

sustainability energy policy efficiency

Mood

critical skeptical

Type

analytical cautionary

When to use this quote

  • fuel production
  • policy making
  • investment decisions

Key Concepts

thermodynamics life‑cycle analysis

Questions to Reflect On

  • What metrics should evaluate true energy benefit?
  • How can policy incentivize genuinely efficient solutions?
A Different Perspective

Alternative biofuels may have hidden costs; market pressures can obscure true efficiency.

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