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January 09, 2009

Comments

Waste is bad. Conservation is good. In fact, I would claim that conservation is a pure good: it reduces negative externalities, and frees resources for higher value added economic activity, while saving resources for the conserver.

If I conserve for my employer, I am (merely) making him more profitable. If I conserve for myself (by turning off a light at home) I am earning money completely tax-free. We like tax-free income, don't we?

A small note: all the measures listed above are conservation measures (turning things off, foregoing consumption), not efficiency measures (energy efficient lighting, appliances, HVAC). While both are valuable, I believe they are economically quite different. Efficiency has capital costs (usually higher), conservation has opportunity costs at most (I think).

But I'm ignoring the crux of your post, that calling for conservation is very, very bad. It makes you a narc, a ratfink, a squealer, a spoilsport. If you are a president, it gets your speech labeled "the malaise speech" and gets you thrown out of office.

Behavioral economists and marketers (at some utilities) are experimenting with methods to encourage conservation without enraging their customers. Apparently ASU did not employ their best techniques.

May I suggest, as politely, and humbly, as I can, that conservation can be encouraged, that it can (and perhaps should!) be studied by economists, and that we can have a healthy, free market economy without cheerleading mindless consumption.

Thank you.

If I conserve for my employer, I am (merely) making him more profitable. If I conserve for myself (by turning off a light at home) I am earning money completely tax-free. We like tax-free income, don't we?

I good point, and one that occurred to me as we discussed refrigerators. If I buy an efficient fridge and save $100/yr. I keep it. If I put the same money in a bank CD and earn $100/yr, I pay taxes on it.

Odograph - yes, BUT: an efficient fridge is an efficiency measure via capital investment, rather than conservation. Yes, it has an ROI, tax-free to an individual.

Conservation, like turning out a light, literally earns you money, tax free, at the flip of a switch. It requires no capital investment at all. It is pure income (and did I mention it was tax free?).

Some conservation measures are even better. If, while buying that energy efficient fridge, you buy the the next-smaller model, you save money upfront (a negative capital cost delta) as well as saving even more money per year, all tax free.

How do economists measure ROI on a negative investment cost?

There are gizmos that turn the light off if there is no motion in the room. Occasionally you have to wave at it, but they do save money, esp in office buildings

Where does running two computers on one desk figure into the plan?

JDC,

I have no idea what you are talking about.

Some time ago, I decided to take it all in, and be the spoilsport. My approach was to be humorous about it, and feigning an exaggerated worry about a light being turned on more than necessary. And to be the first example of doing what I say: when there's a light being left on, I just go there (even if there's someone closer) and turn it off at everyone's sight. Gets their attention.
The thing is, I'm living in a campus. All expenses paid since September, so there little of no incentive for anyone to conserve - there's simply no price in the energy consumed.

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