Technology with the Environment in Mind

  Section 5 of 11  

Green Homeowners as Lead Adopters: Sustainable Living and Green Computing

GROWTH OF GREEN CONSUMERISM

Many of the drivers for environmental action seem to extrapolate well to the general population in the developed world, and there are some clear indicators that green consumerism as a new form of environmental action is taking root in substantive ways. In terms of economics, it is hard to ignore the shifts in policy and practice that have taken place in corporate America over the past five years or so. For example, Wal-Mart's "Sustainability 360" program now evaluates suppliers based on progress toward sustainability benchmarks in areas such as energy efficiency, durability, package size, materials that help reduce the use of hazardous substances, the ability to upgrade, and recycling possibilities. Likewise, Home Depot's Eco Options Program highlights "green" products for consumers who are looking for sustainable options in home projects. Further evidence can be found in the fields of architecture and design, where green building and design standards are rapidly becoming the norm. The U.S. Green Building Council has recently extended its Leadership in Energy and Environmental Design (LEED) standards into residential structures, and some local real estate Web sites (see Portland's MLS [8]) now include green features such as solar electricity or water reclamation as value-added features of a home. In design, a quick glimpse at popular blogs such as www.core77.com will illustrate how sustainability has come to the forefront in that profession. Similarly, interest in green entrepreneurship is spreading across the country (and the world), as evidenced by the rapidly growing popularity of green networking efforts such as Green Drinks gatherings (www.greendrinks.org), and the new flush of venture capital investment in alternative energy in the Silicon Valley [9, 10].

These corporate and entrepreneurial efforts offer potential benefits such as higher product margins, increased market share, and positive consumer perception of a company's corporate social responsibility. According to a 2006 Mintel Research study [11], the green marketplace is now estimated at somewhere between $300-500 billion a year. The same study showed that there are approximately 35 million Americans who regularly buy green products, and that 77% of consumers changed their purchasing habits due to a company's green image. Marketing statistics from many different industries support this. Green homes, for example, are estimated to cost between 2 to 5% more to construct, but are valued at 10 to 15% more in the marketplace [12]. Likewise, organic dairy products are priced typically 15 to 20% more than conventional ones, and organic meats are often priced two to three times more than traditional meat [13]. In terms of technology in particular, we see increasing consumer interest in energy conservation, as well as growing expectations that consumer technologies should enable consumers' personal wellness in ways that are both sustainable and ethical.

While these statistics are certainly promising, it is also important to note that consumer valuations of technology also include a history of expectations that inform perceptions of technology products in unique ways. For example, a recent study by Saphores et al. found that most consumers "are willing to pay only a 1% premium for 'greener' CEDs" [14]. Part of this may be attributed to the fact that "consumers expect manufacturers to innovate to make their products more environmentally friendly without significantly increasing their prices as they may be accustomed to the falling prices and constant progress that characterizes electronics manufacturing" [14]. Even so, the study concludes that "[w]orldwide, the trend is toward environmentally friendly electronics manufacturing," and green attributes can play a role in consumer preference for one device over another even when they do not command a premium price.

Participants in our study expressed optimism that corporations and other organizations could provide valuable solutions or environmentally friendly options, but they were also deeply concerned that the growing awareness and popularity of green values would increasingly result in unethical attempts to overstate claims of environmental responsibility by corporations and other businesses. Participants were highly sensitized to such "green-washing," and were strongly negative about products that were positioned as green but were in fact only partially or superficially green.

  Section 5 of 11  

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