Posts Tagged ‘sustainability marketers’

The accidental benefit of higher gasoline prices

There’s going green. And then there’s saving green. We’re seeing the difference now as gasoline prices climb over $4 per gallon. 

In the post-“Inconvenient Truth” era, many Americans are finding ways to drive less or volunteering to trade in their gas guzzlers for gas sippers to do their part for the environment. That’s going green. Lately, people are selling gas hogs and driving less for a different reason. To save green. Whether the motivation is to save the environment or to save money, the results are the same: fewer gallons of gas consumed and fewer greenhouse gases emitted. 

But the environmental benefit rarely gets mentioned when reporters cover the broader economic and personal financial costs of expensive gasoline. As much as it pains me to say it, an economist quoted in the New York Times is probably right when he says:

“Al Gore came out with a movie called ‘An Inconvenient Truth’ in 2006, when Hummer sales were still good. The inconvenient truth, in fact, is that prices are what matter. With gas prices soaring, Gore is going to get his collapse in Hummer sales, not because people went green, but because they wouldn’t spend the extra green to buy the gas.” 

 

My hunch is a lot of Americans have wanted to do the right thing for our warming climate by downsizing their automobiles, but have waited for financial incentives. When gas was closer to $3, the incentive wasn’t great enough. At $4 and climbing, it is.

Sustainability marketers should take note. There are a certain number of eco-minded customers who choose the environment over saving money. But most customers are guided by their pocketbooks and probably always will be. In the case of gasoline, they find ways to consume less, so they can save money. Period. The environmental benefit is unintentional or, at best, icing on the cake. 

Not that enviros should be complaining that Americans drove 4.3 percent fewer miles in March 2008 than March 2007. We’d just all feel a lot better if we knew environmental values, more than economic reactions, explained the drop. Maybe then, we’d trust that Americans are serious about fighting climate change. 

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