If the students at Stanford University believe they sent the coal industry a strong message this week, they should think again. The school's decision to eliminate coal from its portfolio did not send shock waves through the industry. In fact, representatives say it will have no financial impact on the industry at all. Nor will it curb the growing demand around the world for coal-generated electricity.
"It strikes us as a politically expedient course of action rather than a rational response," says Luke Popovich, a spokesman for the National Mining Association. Even if more universities decide to follow suit, it won't have a material effect on coal companies, he says.
University endowments commanded nearly $450 billion last year, according to the National Association of College and University Business Officers. Of that, only about 5 percent of the money is invested in energy, including everything from coal to solar.
The Two-Way
Stanford University Says No To Coal Investments