The economics of green
Less expensive, easier-to-find products and long-term cost savings are making it easier than ever to go green.
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As the world emerges from the Great Recession, state and local governments remain hyper-focused on reducing expenses. They also remain focused on buying green.
Seemingly contradictory, these two trends reflect a new green reality: Going green makes good financial sense. "Green (responsible) purchasing is increasingly being understood as a way to save money, not just a way to be more environmental," suggests Jonathan Cohen, director of the Responsible Purchasing Network.
Emergence of the green economy
Many economists see growth of the green economy as a critical component of the broader economic recovery, and government purchasers continue to be one of the driving forces.
Governments' interest in buying more environmentally and socially responsible products has led to significant maturing of the green economy since the late 1980s.
A significant change is that there is now a wider variety of high-quality, affordable products on the market with improved environmental performance. Increased demand for greener products has led to more supply, better prices and higher quality products. Recycled-content copy paper containing high post-consumer content, for example, is now indistinguishable in product performance and aesthetics from non-recycled paper. Current recycled-content copy paper is a significant improvement over the dingy, gray recycled-content copy paper originally marketed as "green" in the early 1990s. It is also widely available from suppliers such as Office Depot, Staples and others.
Here are some of the factors contributing to the recent rapid growth of the green economy, particularly within government sectors:
- Lower product costs for greener products and services
- Long-term cost savings associated with many greener purchases
- Lower information costs, which make it easier to identify and buy greener products
Lower product costs
"There has been a perception that buying green has to cost more, but it doesn't," explains Cohen of the Responsible Purchasing Network.
Suppliers agree. According to Yalmaz Siddiqui, Office Depot's director of environmental strategy, government purchasers across the country — "but especially in places like California, the Pacific Northwest and the Northeast" — are aggressively pursuing green cost-saving opportunities. As an example, he cites remanufactured toner and ink cartridges that generate immediate 10 to 30 percent cost savings when compared to virgin products, meet original equipment manufacturer standards, comply with equipment warranty requirements and come with a 100 percent money-back guarantee that covers any potential damage to equipment resulting from their use. Office Depot even offers a take-back program to keep the ongoing environmental benefits and cost savings viable.
In addition to toner and inkjet cartridges, Office Depot also reports significant government purchaser interest in greener cleaning chemicals, which are available without additional cost and provide significant human health and environmental benefits; energy-efficient lighting and office equipment; and continued interest in recycled-content copy paper.
"While recycled-content copy paper is generally more expensive than virgin paper, it continues to sell well for government purchasers and other organizations that have made a green purchasing commitment," explains Siddiqui. To help defray the additional cost of recycled-content copy purchases, Office Depot is helping some customers implement double-sided copying practices to reduce overall copy paper costs even if purchasers have to pay slightly more for the recycled-content paper. This assistance is part of a broader program of "green audits" to help customers across the United States identify opportunities to improve environmental performance and reduce overall cost. Office Depot also provides reports documenting green purchasing quantities and the resulting environmental benefits. A "green substitution" program in places such as Hennepin County, Minn., automatically provides pre-approved "greener" alternatives to specific purchasing requests.
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© 2012 Penton Media Inc.
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