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the CBSi and the world. I'm John Batchett with Professor Richard Epstein of the Hoover Institution. We're discussing a bold initiative by Gary Gansler, the new chair of the SEC, formerly a chair of the

SEC during the Obama administration, he's returned to his post to present to all companies private market companies a requirement to disclose what

their investments mean for the future of the Earth's climate.

And the second question that Richard raises in his most recent essay

defining ideas is,

can this proposed initiative, in other words, disclosure disclosure can it lead to curbing what you

presume right now are negative effects of global warming?

How would they demonstrate that, Richard?

Well, I mean, look, when you're starting to do this, it's pretty clear that you know what to do

when you have relatively closed systems. So for example, I suppose you have a bunch of seashells and they're at the edge of a river, but they have to have a salty environment in order to survive.

If it turns out that you pour out too much pure water, it may not be a pollutant in the ordinary sense,

but what it's going to do is to dilute the salt so the organisms will die.

And so therefore you have a relatively clear recipe of what it is that you have to do

when it comes to controlling those kinds of flows. But when you're dealing with global warming,

you're dealing with what is called a complex chaotic system which doesn't mean that

...