Since the price of oil has dropped over 50% in the past year, what effect will it have on the alternative energy industry as a whole?

With cheap oil available, the public outcry has calmed for new sources of energy.  Although this pricing condition is short-lived, the meltdown in the financial sector might have a more lasting and negative impact.

For example, the ethanol industry has seen its share of problems recently due to the skyrocketing costs of corn.  However, as all commodity prices have become turbulent in recent months, some ethanol producers have not adjusted to volatile price swings,  and firms such as VeraSun Energy Corp., have filed for Chapter 11 protection.

The $700 billion government bailout includes an 8-year extension of solar power tax credits, which is very positive.  However, absent an influx in capital investment funds, this industry will not advance as quickly as once believed.

Wind power has also been given a one-year extension of production tax credits.  Again, being that this industry is capital intensive, its growth rate will also slow to a crawl.

With a new administration promising $150 billion over the next ten years in alternative energies, it comes at a very opportune time.

Let’s hope the American people will not be lulled into thinking oil pries will continue to fall forever.  The time for investment into clean energy is now.

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Robert Piller is President of EcoMarketing Solutions LLC, a company that helps businesses promote themselves to their customers and prospects at trade shows using environmentally-friendly promotional products that won’t end up in a landfill. He is a frequent speaker and writer on issues of green marketing. He can be reached at robert@ecomarketingsolutions.com. You can also visit his blog at www.greenspotblog.com.

Incentives have been used for decades to get people to open up a savings account, use a particular airline or hotel and to apply for credit cards, for example.

So why shouldn’t incentive programs be used by both the public and private sectors to encourage green behavior?

One company, Lifetime Fitness, in Austin, Texas is dedicating 30 “choice spots in their parking lot for “low-emitting and fuel-efficient vehicles’”, according to the Austin American Statesman. They are not alone, as several other companies are offering similar programs to their customers, including Office Depot. Their parking sites were set aside in order to qualify for recognition from the US Green Building Council.

So far, according to the news story, reviews are mixed. Some patrons feel that they shouldn’t be punished for driving a gas guzzler. Others think it is great.

In Austin, the City used to have a perks program allowing 250 parking cards, worth approximately $100 to owners of fuel-efficient automobiles off the cost of parking meter costs. However that program was canceled, as the city viewed it as rewarding action that people would probably have done so on their own.

However, with the nation trying to find ways to encourage its citizens to reduce fuel consumption, getting the private sector to incentivize fuel reduction is a win-win situation

If anyone knows of any other companies or cities that are offering perks for driving energy-efficient automobiles, I’d love to hear about it on my blog. Please leave your comments.

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Robert Piller is President of EcoMarketing Solutions LLC, a company that helps businesses promote themselves to their customers and prospects using environmentally-friendly promotional products that won’t end up in a landfill. He is a frequent speaker and writer on issues of green marketing. He can be reached at robert@ecomarketingsolutions.com.

Companies of all sizes and across the entire business spectrum are trying to “go green” at an amazing speed. Some do it for personal reasons, some do it out of corporate social responsibility and others are doing it for good old fashioned bottom-line financial reasons.

Whatever the motivation, this is a positive trend.

But I’m often asked if going green makes good economic sense for a company or institution – and I cannot always say “yes”. At least, not with a straight face.

The truth is that, at this time, going green makes economic sense for business that cater to the more educated, more affluent and more socially responsible consumers, according to the 1996 Roper-Starch Worldwide Report.

Because this Roper-Starch Report is one of the best studies of its type, I have used it as a basis for this article. While the fundamentals of this study are still sound, remember these numbers are twelve years old. With the constant streaming of green information by the media over the past decade, I would guess that the number of consumers that would consider themselves “environmentally friendly” has gone up significantly.

According to the Roper-Starch Worldwide Report, there are five types of consumers.

1) True-Blues

This hard-core group holds the strongest environmental beliefs and actually live the eco lifestyle. They talk the talk and walk the walk, in laymen’s words.

True-Blues are usually ardent environmentalists, attempt to influence others, and are politically and socially active. This audience is one of the most educated groups and is most likely to be a white woman holding down an executive or professional job.

2) Greenbacks

This group is more willing to pay a premium price for green products – up to 22% more. Although not very politically active and not nearly as pro-active as the True-Blues, Greenbacks are most willing to show their support for the environment with their wallet. This demographic audience is primarily a young, married white male holding down a white collar job.

3) Sprouts

Probably the largest market segment, this group is willing to engage in environmental activities from time to time, as long as it doesn’t require much effort. Recycling is the most eco-oriented activity they participate I, as they will not pay a premium for green products. This is a swing group, if there ever was, and the most likely target and audience for the advancement of the green movement over the next several years.

4) Grousers

This group does not believe that individuals play a significant role in protecting the environment; instead they feel it is the responsibility of the government and large corporations to make a change. Grousers are mostly uninformed about environmental problems, and would rather complain that they are too busy, rather than to get involved. The members of this group may participate in a recycling program, but only if their local laws require it.

5) Basic Browns

Basic Browns do not make any attempt to sugarcoat the fact that they do get involved in any environmental activities; they are simply indifferent. As can be expected, this group is the least educated among the five and, according to the research, they live primarily in the South.They think the green movement is much ado about nothing and think they are being brainwashed by the “leftist elitists”. They think green washing is happening to them.

So, knowing about these five groups of consumers, does going green make economic sense for all companies?

I would conclude that any business which is targeting anyone, other than what can be perceived as “Bubba”, can gain immediate benefits from promoting green products to their audience. Just as rising tides raise all ships, I would suggest that if your product or service reaches all market segments, promoting green is still a no-brainer. Basic Browns may eventually “get it”, but it will take time—possibly as long as 5-10-20 years – or longer.

It seems that this demographic also was the last to understand the importance of Civil Rights and Women’s Equality issues. However, over time, their indifference, or even hostility to the cause, will become less meaningful to the rest of the population. As this particular audience eventually gets older and older, they will be replaced with a much more open-minded audience.

However harsh this analysis may appear, it is actually very positive. The green movement only will get stronger as people notice the Earth’s rising temperature, see more visual news clips of melting glaciers, read about more starvation and droughts across the globe, learn more about carbon neutrality and the meaning of carbon footprint, etc.

As the green movement continues in a positive fashion, every business will gain by becoming green and promoting this benefit to their consumers.

Until then, if the Basic Brown is your only customer base, putting money into green marketing, at this time, will probably not yield the best return on your investment. My hope would be that you would upgrade your product offerings to appeal to a greener market segment in the near future – until Basic Brown no longer exists as a demographic audience worthy of consideration.

Thank goodness consumers are more eco-conscious — and this trend is moving greener each day. With the 2008 elections casting even more interest on the environmental movement to the apathetic, it is only a matter of time when a new survey will show only degrees of “green-ness” — and being green will be the cost of entry for any business.

Here’s to a greener planet.

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Robert Piller is President of EcoMarketing Solutions LLC, which helps businesses promote themselves to their customers and prospects using environmentally-friendly imprinted promotional products that won’t end up in a landfill. He is a frequent guest speaker and writer on issues pertaining to green marketing. He can be reached at robert@ecomarketingsolutions.com.

The word “sustainability” is used a great deal these days, without any clear or complete definition. In fact, the meaning is rather ambiguous, at best.

Probably the most recognized definition of sustainability comes from the 1987 report Our Common Future—better known as the Brundtland Report—which states that development is sustainable when it “meets the needs of the present without compromising the ability of future generations to meet their own needs.”

Steve Johnson, Administrator, U.S. Environmental Protection Agency, stated that ” We have a responsibility to sustain – if not enhance – our natural environment and our nation’s economy for future generations.”

It is interesting to note that neither statement favors environmental protectionism over commerce or vice versa. Rather it states that the two must work together for the common good. It recognizes the needs of the current population must be met in a way that does not adversely affect the environment.

Though there is no clear method to measure sustainability, climate neutrality is considered the highest of sustainability goals by many governments, NGOs, businesses and other institutions. Most charters that deal with sustainability encourage the integration of environmental, economic and social goals in policies and in activities—both on a global and local level.

The EPA’s Sustainability Research Strategy examined several interrelated and complex factors—such as growing human populations, increases in waste production, growing energy demands, and land development—in the hopes of better understanding their effects on the earth’s natural systems.

How does sustainability take into account the growing human overpopulation combined with current lifestyle patterns? It should be no surprise that there are studies that support both sides of the equation—both that the current world population is too large to support sustainability, and others that argue that it is sustainable. What can be agreed upon is that the “ecological footprint” of some countries is greater than others. For example, the ecological pressure of a US resident is believed to be approximately 12 times that of a resident of India and 24 times that of a Somali resident. Even in the Unites States, certain states have a stronger “ecological footprint” than others. For example, nearly one-third of the U.S. population resides in the 17 Western states, which include seven of the nation’s 10 fastest growing states. As these states continue to see a continued growth expansion it will continue to affect the allocation and use of resources.

As the population grows and shifts, it is interesting to note that natural resources have an interrelated effect on one another. According to the EPA’s Sustainability Research Strategy report, “since 1971 each 1 percent increase in worldwide GDP has resulted in a 0.64 percent increase in energy use. Most of the energy has been produced from fossil fuels, so the increased energy use has led to greater emissions of air pollutants from the combustion of these fuels. Nearly half of U.S. water withdrawals are used for cooling power plants and water is also used to scrub air pollutants from flue gas; so rising energy use increases both demand for and pollution of water. Extraction of fossil fuels from the earth requires use of more materials, changes the surrounding land, and produces more wastes (i.e. unwanted materials). Finally, increased energy use impacts ecosystems through such factors as silt runoff from energy extraction activities and the decline in water quality caused by runoff from mining facilities. Interactions like these demonstrate forcefully that a systems approach offers the best strategy for understanding environmental impacts and for designing cost-effective and sustainable policy responses.

In regards to land development, the Sustainability Research Strategy report notes the correlation to impervious surfaces , such as roads and rooftops, and the degradation of water quality due to increased” runoff volume, stream sedimentation and water acidity”. According to the report, a single “one-acre parking lot produces a runoff volume almost 16 times as great as would an undeveloped meadow of the same size.” Therefore, the importance of green building and green design is crucial as the population expands, both for new development and replacement construction.

For generations, the importance and seriousness of sustainability have been understood, so why has there been so much resistance to it? The precautionary principle states that “if there is a risk that an action could cause harm, and there is a lack of scientific consensus on the matter, the burden of proof is on those who would support taking the action.”

Therefore, as long as there are pundits on both sides of the sustainability equation, change will continue to be gradual. However, as global warming continues to heat up the planet, many developing nations are beginning to implement policies in support of sustainable development. Coupled with corporate social responsibility, greater public awareness and a better understanding of carbon footprints, the goal of sustainability can become a reality.

Here’s hoping for a clear and legitimate definition for sustainability, so we can help work towards a solution.

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Robert Piller is President of Eco Marketing Solutions LLC, a company that helps businesses promote themselves to their customers and prospects using environmentally-friendly promotional products that won’t end up in a landfill. He can be reached at robert@ecomarketingsolutions.com.

In my discussions over the years with clients, one question seems to pop up more than any other: Are Americans willing to pay more for environmentally-friendly products?

For the segment of the population that is most affluent, most educated and most eco-conscious, the answer has always been – yes.

Now, a survey conducted by GfK Roper Public Affairs & Media and the Yale School of Forestry & Environmental Studies, shows that an ever increasing number of Americans are willing to pay more for environmentally friendly products.

“Many American consumers, even in the face of economic uncertainty, express a willingness to pay more for environmentally friendly products,” said Anthony Leiserowitz, director of Yale Project on Climate Change.

Half of the respondents to the survey said they would “definitely” or “probably” pay 15% more for eco-friendly clothes detergent (51%) or for an automobile (50%). Forty percent said they would spend 15% more on “green” computer printer paper and 39 percent would do the same for “green” wood furniture.

What has been most surprising in this study is the fact that Americans who said their current financial situation is “fair” or “poor” were just as willing to spend 15% more on such environmentally-friendly products as detergent or wood furniture as those Americans more confident of their current financial situation.

As the green movement continues to grow, this survey should make it clear to industries across the board that green products will continue to increase in demand. Whether you are a manufacturer, small family business or service provider, it is important to increase the development or repackaging of your products as environmentally friendly.

As green becomes the norm, and probably the cost of entry for most products within the next 3 to 5 years, those firms that get a jump start on their competitors will have the best chance of capitalizing on this premium price differentiation. After that time frame, the green premium will most likely disappear and companies will have to look for the next marketing edge.

In the meantime, go green. It makes economic sense.

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Robert Piller is President of EcoMarketing Solutions LLC, a company that helps businesses promote themselves to their customers and prospects using environmentally-friendly promotional products that won’t end up in a landfill. He is a guest speaker and writer on issues pertaining to green marketing. He can be reached at robert@ecomarketingsolutions.com.

Is God an environmentalist? Does Scripture teach the need for environmental stewardship? Why are churches going green and preaching the “green gospel”.

Well, more than ever, churches, temples and mosques are promoting the green movement in connection are part of a growing trend toward matching science with religion.

Pope John Paul II, once described environmental concerns as a “moral issue” and noted in 1990 that people have “a grave responsibility to preserve [the earth's] order for the well-being of future generations.”

The environmental organization, Sierra Club, has publicly recognized and welcomed the “growing level of commitment and leadership among people of faith working to connect environmental awareness with widely shared values including stewardship, justice, and concern for future generations. We also recognize that lasting social change rarely takes place without the active engagement of communities of faith.”

One organization, the National Council of Churches of Christ has begun a campaign to promote the ideal that, according to their website, says that “God calls us as stewards of God’s creation. Making our churches a more environmentally friendly place can provide a healthy, toxic-free sacred space as well as help us protect God’s creation for current and future generations.”

Another organization, the Interfaith Power and Light, is trying to engage faith communities to “talk actively about environment and faith”.

Their website says, “We are an interfaith ministry devoted to deepening the connection between ecology and faith. Our goal is to help people of faith recognize and fulfill their responsibility for the stewardship of creation.

Specifically, the Interfaith Power and Light campaign is mobilizing a national religious response to global warming while promoting renewable energy, energy efficiency and conservation. People of faith have an opportunity to put their faith into action and help reduce the devastating effects of global warming.”

This organization is fast growing throughout the South and Southeast and its philosophy is catching on. In addition to offer sermon suggestions and helpful tips on reducing energy consumption inside the places of worships, they have created kits to encourage going green throughout the holidays, including using energy-efficient light bulbs on menorahs for Hanukkah or Advent. This organization also has trained over 150 religious leaders for grass root campaigns to make environmental messages as part of their sermons, as well as part of their building and education programs and in their community life.

The importance of a strong environmental movement is gaining rapidly among all faiths as the cause and impact of global warming on the world’s poor has become more pronounced. One survey shows that in the United States, 67 percent of Americans say they care about the environment because it is “God’s creation.”

What does the future hold for the green movement at churches? You’ve got to have faith.

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Robert Piller is President of EcoMarketing Solutions LLC, a company that helps businesses promote themselves to their customers and prospects using environmentally-friendly promotional products that won’t end up in a landfill. He is a guest speaker and writer on issues concerning green marketing. He can be reached at robert@ecomarketingsolutions.com.

Is Going Green Good Enough Anymore?

Advanced Micro Devices Inc. was planning to open a $270 million campus in Oak Hill, Texas on some environmentally sensitive land. In 2005, in order to help get approval for this construction, the company promised to donate a total of $3 million to help purchase land for a preserve upon completion. Well, just a few days ago, as AMD opened its new campus, they donated the balance of the pledge, $1.5 million. This money will be split among several organizations, according to the Austin American Statesman, including $750,000 to purchase 44 acres near the Pedernales River’s Westcave Preserve, $650,000 for the Hill Country Conservancy and $100,000 to the Lady Bird Johnson Wildflower Center for its grassland management research and demonstration project.

Why isn’t this project getting thumbs up from everyone? Read more…