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“Green” marketing hype turning off consumers

December 18, 2007

The delightful Appliance Design magazine has a very interesting news item about a survey regarding consumer attitudes towards “green” products. It turns out we are getting sick and tired of all these companies trying to sell us stuff under the banner of “green” eco-friendly design. The intent to purchase green products has dropped about 20% from last year. I too am getting green fatigue. It seems like every press release and every story has to have some green angle. Now sure, buying a green washing machine may save a little energy on your bills, but the there will sure be a ton of energy wrapped up in the production of that new machine versus just keeping your old machine running. It turns out that consumers are pretty smart. In order to justify a 4000-dollar purchase for some “green” technology, they expect to see monthly savings equal to the additional mortgage payment they would need to make on that four grand. Since home equity is at 6% right now, 4 grand costs about 20 bucks a month. If that does not come off the gas or electric bill they realize that you are just trying to sell them some new crap that does not make economic sense. Bravo. It turns out that consumers are just as savvy as businesses about capital expenditures. The folks over at International Rectifier get green right. They have always been interested in power savings since they are in the power semiconductor business. When they showed me their presentation about smart motor control for washing machines they noted the cost of the electronics is offset by the savings of removing the transmission from the washing machine, since you vary the speed and reverse the direction of the motor electronically. International Rectifier seems to have taken the most systems-approach to advanced motor control. STM and Fairchild will sell you various modules you can hook together to run a PM motor, but IR integrates the microcontroller and the drivers and the power electronics onto one low-cost module. Pretty cool, expect the electric bike and scooter people to pick up on this and adapt the parts to vehicles. I am sure that would be OK with IR, their founder, Eric Lidow, was parading around Italy with an electric car back in the 1950s. Back then rectifiers were made from selenium. They sure have come a long way.

In a similar vein to green fatigue, one of the most promising green technologies — wind power, is getting a little pushback from the neighbors of people that want to put up 50-foot towers with noisy generators and windmills at the top. Anybody that wants a ham radio antenna at their house knows how much fun it is convincing the neighbors that it won’t look like crap and ruin their property values. Brian Dipert talked about the promise of wind energy here.

I am a great believer in conservation, but asking us to spend money to give the appearance of green, when we are just using more energy to make some shiny new crap to show off with, well, that is not being green, that is being vain. And remember, life is analog and any alternative technology will have benefits and drawbacks. The Alameda wind farm must not seem very green to the 4000 birds that it kills every year. The very thought of semiconductor companies bragging how green they are is a little laughable. I remember a friend that worked at a big wafer fab. She pointed out the hundreds of dead birds on the roof. She did not know if the birds were hitting guy wires for the stacks or if they were being poisoned by the all the toxic gasses used in semiconductor manufacturing. I do know that technology is the only way to solve technical problems. Honda introduced a hydrogen fuel cell car that really seems to work. As always, the problem is that it would cost about 100 times more than a regular car. All that cost represents energy and other social costs, so forcing us to all buy hydrogen cars will not help the planet, indeed, it will hurt it. Anyway, here’s to progress, but don’t expect to run your car off hydrogen or your house off solar any time soon, unless you are willing to pay far more than any economic rational would justify.

Posted by Paul Rako on December 18, 2007 | Comments (19)

August 12, 2009
In response to: “Green” marketing hype turning off consumers
INGY commented:

THIS ARTCLE IS VERY INTRIGUE AND INTEREST GREATLY I WOLD LIKE MORE OF YOUR INFO PLZ REPLY WITH E MAILS AND ADDRES TO REACH


May 19, 2008
In response to: “Green” marketing hype turning off consumers
jpmiller commented:

Protecting your own economic well being during a time of economic struggle is profoundly selfish. It is in your rational self interest as Ayn Rand put it. And that is good not evil.


May 19, 2008
In response to: “Green” marketing hype turning off consumers
jpmiller commented:

There are two types of greens - those who want clean air and clean water to live in and to reduce the cost of living and those who think nature is intrinsically good and should be protected for its own sake not for the benefit of man. This latter ultimately seek to destroy man. Read their rhetoric. In a truely free market with private ownership all externalities will be accomodated. The cost of landfil will make it uneconomic to throw away certain kinds of trash. The cost of increasingly scarce whales caused a switch from whale oil for lighting lamps to fossil fuel. The cost of fossil fuel will eventually force a switch to other energy forms. The economy of paying for appliances will cause people to choose more energy efficient models at the right capital cost. It is the intrinsicist who can not allow the market to work because working is not his goal, rather elimination of man is.


March 11, 2008
In response to: “Green” marketing hype turning off consumers
Jay Mackey commented:

More 'green' idiocy... well, marketing hype, anyway... Dyson has a new commercial about his work on developing a 'new' kind of motor: one without carbon brushes. This will reduce carbon dust production, he says. A bit later, he summarizes his new, soon to be developed, brushless motor as having no 'carbon emissions'! OMG! Obviously he is asking us to disregard the carbon emissions produced in the manufacture of the device itself, and the power to run it, and of course the fact that carbon dust IS NOT CO2, and if found in the upper atmosphere, is most likely to assist in the reduction of global temperatures. That, and there's nothing 'new' and 'revolutionary' about brushless motors. Unless he meant 'revolutionary' as a pun.


February 27, 2008
In response to: “Green” marketing hype turning off consumers
Jay Mackey commented:

I hate "Green". A sure-fire way to turn me off is to tout your ''greeness''. And it''s more than ''fatigue''. It''s the factless religious fervor as evidenced by most of the posters named ''To'' on this page. I''ve investigated the latest solar/wind/hydrogen products for the home, and they fall far short. The paybacks are exceeding two decades for some of the stuff out there. Even when a government will pay up to half the cost to subsidize, it often still makes no sense. BTW, if libertarianism doesn''t work, and government regulation is the only answer, then what explains Yellowstone National Park? The place was a ''pristine'' wildlife paradise before it was ''nationalized'', after which well-meaning bureaucrats ran it into the ground. It turns out that it wasn''t so ''pristine'' after all. It turns out American Indians had been ''managing'' it just fine on their own. This included controlled burns, hunting, and other wildlife control measures to produce a virtual paradise. They didn''t kill off all the game animals to feed themselves. They didn''t kill off all the predators because they might hurt the deer and elk. They didn''t need government regulations and bureaucrats to tell them that that would be bad for their future.


December 20, 2007
In response to: “Green” marketing hype turning off consumers
Bob A. in Canada commented:

Consumers are very smart indeed. They will gladly replace old appliances with new energy efficient ones, but the question is when. If their old appliances are nowhere near their end-of-life yet, then they must see energy bill savings to justify the immediate replacement cost. But if they are near end-of-life, then consumers must buy something and it will only make sense to buy the latest and greatest green product. Consider something else, too. How will consumers know how much they are saving on their energy bills with green products. It's nearly impossible without the right equipment to monitor their electricity consumption in real time in the home. A hot idea would be to provide consumers with a real-time in-home energy display that communicates directly with your electronic smart meter on the house. Too bad governments and utility companies are not terribly motivated to provide this sort of technology to consumers... yet.


December 19, 2007
In response to: “Green” marketing hype turning off consumers
David1234 commented:

"I do know that technology is the only way to solve technical problems." You have GOT to be kidding me! This is exactly what is wrong with the world today, and it is called "techno-triumphalism". Additional complexity does not always solve complex problems - often it just reduces them to complete chaos.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
John Wilson commented:

I was all excited to post a comment pointing out that cars costing 100 times more than they do now wouldn't "force us all" to buy them...it might force us all to walk, it might force us all to use (or develop) mass transit... But the idea that we'd have to accede and purchase the car regardless of the price is kind of an America-centric point of view...and may not stand up in the real world. Any more than the concept that 'green' must be economically advantageous to be feasible. "Green" should reflect the real cost of things...otherwise, we end up with 'sub-prime' greenness. But then I read the other comments here, and realized... Bummer - You're not going to understand a word I said.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
think about it commented:

What people who are Green driven are realy saying is, I''m willing to change this much. Example - you by a hybrid car to help conserve gasoline, why don''t you give up driving if it''s realy that big of a problem? You say use windmill''s for electricity, why don''t you quit using electricity? The answer is obvious to live the way we want we''re not willing to go that far to "save the earth". Economics in a free market will allways give the correct answer. If you mess with it you will accept a result that is under performing or more expensive or both.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Thomas Greene III commented:

What a horrible article. So ignorant. Do some research and write this again with some truth. Thanks


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Funny commented:

JR- Unfortunately ... you speak the truth. :-) If the greenhouse effect and global warming is all due to human activity, then why is it a proven fact that Mars is getting warmer too? Ain't no SUV's, coal fired plants, or industrialization over there...


December 18, 2007
In response to: “Green” marketing hype turning off consumers
To Brock Rockman commented:

I love you and want your babies.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Green start commented:

As I walk out of my house I am suffocated by the plume of smoke from my neighbor''s fire place! The first place to start green is stop using your fire place as it is the most polluting way to heat your homes. I have stopped using my fireplace 20 year ago eventhough it may save me a buck or two using it.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
To T'bird commented:

You have been brainwashed by the liberal left. It makes no sense to trash a good machine to buy an expensive green machine. Sure, when mine dies, I'll buy an energy efficient machine, but until then, forget it. As for solar heating water, it depends on where you live. PV payoff in 7-9 years? Not a chance. Wake up and do the math. It ain't there even in sunny climes let alone anywhere else. Did you ever think about the resources required and by-products of PV production? Not exactly a green prospect. When "green" makes cents (the other green) then it will happen. Otherwise you are just out there spending more money making yourself feel less guilty.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
JR commented:

The themes in this discussion all boil down to one "inconvenient truth": Environmentalism has become a religion. It's no use talking facts with the true believers. They know what they know and data that doesn't fit their model will not penetrate.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
To Alexander: commented:

I think you're smoking crack, son, and ranting about some mythical "externalities economists" (this is like saying "addition mathematician" - externalities are about as fundametnal and uncontroversial in economics as addition is to math). First, as a society, we are more concerned to not harm ourselves in a wider sense, so making sure bad things dont happen in some sense more important than insuring that particularly good things do. However, more than that, when you reward positive externalities, you actually end up eliminating them somewhat. For example, if a person volunteers for a year, if the government rewarded them with a year's salary, then obviously this is a wash; there is no or nearly no positive externality. Governments do indeed promote positive externalities all the time - for example, in Pennsylvania books are not taxed and particularly good neighbor companies and individuals are routinely given awards. I don't think you've thought your point through enough!


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Alexander commented:

You hear a lot about how capitalism doesn't account for market externalities and therefore demands regulation, but you never hear those same "externalities economists" demanding that the government step in to reward those who create positive externalities. Like when a businessman succeeds and his efforts create not just profits for his company, but also contribute to the gentrification of his city and improvements to the standard of living of the cascading customers, clients, and vendors that are touched by him, he's created a massive increase in societal well-being for which he is uncompensated. Answer me thusly, if we are so concerned with externalities, why do we ignore positive externalities and only talk about negatives? I'll happily pay the government my carbon tax and other neg externalities when it pays me for my positives.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Tarcher commented:

Toxic gases from semi plant killing birds? Give me a break, ever heard of scrubbers? And if you really really really want to be green, don't bathe and don't bother washing your clothes in the first place.


December 18, 2007
In response to: “Green” marketing hype turning off consumers
Brock Rockman commented:

I was busy clubbing baby seals with puppies...what were we talking about again? Oh yeah. Green is neato!!!

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