Thursday, June 26, 2014

Efficiency & the Green Economy


Being "green" by being more energy efficient means using less energy to do a given task. But, what happens with the money left over? If the energy efficient method does not cost as much as the alternative, then the extra money is used somewhere else in the economy. For example, a fuel efficient car leaves more money for the driver to spend on other things - which generally means more consumption and natural resource pollution.

Obviously there is some choice and discretion one can exercise to spend money on "green" alternatives, but reducing your expense on non-green consumption fixes nothing.  You need to spend a higher percentage of you total yearly expenditure on "green" expenses.

If you don't spend your money, but save it instead, your bank will loan it to someone who will spend it - and it probably won't be a very "green" use...

Efficiency allows more to be produced for less, which allows surplus to be used for something else. The result is a larger economy, or more economic activity. In general, more economic activity results in greater resource consumption, which, ironically, means that energy efficiency leads to natural resource depletion. 

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