The Efficiency Paradox

Posted on Thu Nov 29 2007

By: Meredith Melnick in Green News, Theories

What do most people do with their energy star-rated dishwashers and fuel efficient cars? Why, use them more! CIBC World Markets conducted a survey to understand the behaviors of consumers who used "efficient" products. With the savings from gas and energy bills, most people used more energy and gas. Sound counterintuitive? It's pretty natural behavior.

Imagine a box of fat free cookies. If a person was trying to be conscientious, he might take one full-calorie cookie. But with a 'diet' option, he might take three cookies. The same principal applies to green appliances. The thinking goes: 'I have an environmentally friendly car, therefore I can drive it to the corner store in good conscience.'

The study looked at energy use and efficiency trends from 1975 to 2005 and found that use increased at the same rate as efficiency, with each increasing by about 40% over the 30 years of the study data.

From this data, it is possible to conclude that the 'carrot' method is an ineffective one for the average consumer: a savings in money does not reward good environmental practice, it provides permission to behave more irresponsibly. The 'stick' method might instead be preferable. Instead of rewarding energy savings with a discount, why not discourage energy expenditure with a tax?

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Comments

Meredith Melnick Says:

I'm not sure I buy this notion that taxes are unfair to those who can't afford it. Aren't the very refrigerators prohibitively expensive to most of the world's population? Nobody seems upset about the injustice of that status quo. We are fat because our food is too cheap and wasteful because our gas is too. "Affordability" is the reason people feel entitled to 4,000 calories each day and 17 miles-a-gallon SUVs. Perhaps if things had a price that reflected their social cost, we would have a healthier society. That said, I agree with you that it is the responsibility of industry marketers to stop greenwashing everything. What do you think governments, educators, et al can do to deter consumers from overdoing it?