As a passionate enemy of suburban sprawl, I listened intently to an interview this morning on NPR with Brookings Institution demographer William Frey in which he notes that housing prices are falling faster in the areas outside cities. Is this a permanent correction that is making “exurbs” less desirable overall? And how are gas prices influencing this loss of home value? Mr. Frey was cautious in his answer, saying “the jury is still out” and that Americans have a history of moving outward from cities in order to buy more housing for less, seeing long commutes as an acceptable trade off.

However, it doesn’t take a genius to see that, when a commute costs more than one is saving on housing, while sucking up hours of one’s valuable time, (and as the saying goes, “They aren’t making more of that”) why would one buy a home in the far suburbs? Why, indeed?

Sperling’s Best Places did a survey two years ago when gas prices were at $2.90 a gallon. The following were the most expensive cities in which to commute and listed the average annual commuting cost:

City Annual Commuting Cost (2006)

1. Atlanta $5,772
2. Birmingham, Ala. $5,464
3. Orlando, Fla. $5,404
4. Jacksonville, Fla. $5,360
5. Pensacola, Fla. $5,173

So, if gas prices reach $6.00, Atlanta’s commuting cost would be over $10,000 per year. Yikes.

A posting on Wall Street Journal’s online edition reports that even the conservative International Energy Agency is moving toward the Peak Oil Pessimists’ camp. The conclusion is that it’s not speculators making oil go higher but simple capitalist principles like the law of supply and demand – developing countries are going to be driving up demand for many years to come.

So will this result in an end to sprawl? Will avoidance of driving cause the demise of the ugly, cookie-cutter mini-mall blight that has mushroomed around our cities like an invasive species? Let’s hope so.

Sprawl Kills

Addressing Peak Oil at the Local Level

Things will change here in the USA. These changes will sometimes more difficult for some than others. More of us are already using public transportation, riding bikes — even moving closer to where we work or pressuring employers to offer flextime (to avoid rush hours) or telecommuting from home. In part thanks to the mushrooming energy costs, how much of business was done in the period of relatively inexpensive oil and other fossil fuels will morph into a new model of business model where energy costs are front and center.

Another trend: the explosion of people starting their own green business as an ecopreneur, operating their business without destroying the planet or exploiting people. Energy conservation and efficiency are often the very DNA of these enterprises. Eventually, the politicians in Washington DC might realize that opening up ANWR merely delays the reality that we need to cut our addiction to oil, for climate’s sake. We need to get back to 350 parts per million of carbon dioxide to maintain some degree of climate stability. Burning more oil, coal or natural gas is not the way.

There are many financial benefits of becoming a business, depending on how you structure it. Not only are businesses taxed after their expenses have been deducted, but many legitimate deductions are available to a small business that reduce its reported earnings — like the use of your personal car for business-related and documented use.

Owners of vehicles that are used for business purposes can deduct those miles associated with business use and be reimbursed for mileage by the business. For example, when we drive to speak at a Green Festival, MREA Renewable Energy and Sustainable Living Fair, or to visit a client, we reimburse ourselves at the IRS specified rate. Make sure to maintain a vehicle travel mileage log for each vehicle used for business purposes.

Making Money from your FUEL EFFICIENT Vehicle

One of our discoveries we write about in ECOpreneuring is the tax benefit of using our fuel-efficient vehicle for business purposes. Every year, the IRS sets the reimbursable rate for the business use of your vehicle, based on national fleet repair and maintenance averages and fuel costs, both of which are rising. We get the same rate whether we drive a super-fuel-efficient Toyota Prius or Volkswagen Jetta TDI (diesel) versus a low-mileage Hummer. It turns out we’ve managed to make money off each business mile we put on our Volkswagen Jetta TDI because the cost of operating and fueling it is less than for other new and less fuel-efficient vehicles.

How? First, we only buy used vehicles because as soon as most new vehicles are driven off the dealer’s lot, they lose about 25 percent of their value. Second, by the time we might sell our used vehicle with years of reimbursed business miles paid to us as owners, the cost of the vehicle would have broken even. For example, one year we might have 7,193 business related miles put on our VW Jetta, multiplied by the IRS designated rate (2007) of $.445/mile, resulting in the business reimbursing us for the business use of the car to the tune of $3,200. Keep in mind that this expense item reduces the reported earnings of the business by $3,200 as well.

So if you have to drive, why not create a green business where you can at least deduct your miles related to business use of your vehicle? By the way, when we can, we put B100 (100 percent biodiesel) or B10 (locally secured from a Smart Station) in our Jetta. Our other vehicle exclusively used for business is an all-electric CitiCar. We also work from our home office, completely powered by the wind and sun.

Photo Credit: scotech at Flickr (under a Creative Commons license)

But nothing puts a hurting on a budget than a new car and an eco-friendly one at that.

Now don’t get me wrong. I’m not saying we need to buy a brand new car. I’m just saying that we’re going to need to invest in something big enough to fit two car seats and a booster. Well, legally anyway, because no matter how much my daughter begs me to ride on the roof, I just don’t foresee that in her future.

And we’re trying as hard as we can not to have kiss our freedom from car payments good-bye. It certainly helps when we’re paying $4/gallon for gas.

Thanks to the folks at GM and Volvo, I’ve had the opportunity to try out a few different cars, including GM’s Acadia and Tahoe Hybrid, and Volvo’s V-70 Wagon. But even those fairly reasonably priced cars (okay, except the Hybird — WHOA!), may not be feasible. Then add in the fact that my husband and I really want something that’s eco-friendly and doesn’t have the word “VAN” in it and we’ve got ourselves quite a dilemma.

Of course, doing less driving is always a fantastic option, but considering we live in a suburb of a city where you do really have to drive to get anywhere, it’s not the greatest one, at least for a mom with three kids under four (wow, that’s still really hard for me to get my own mind around!).

So aside from continuing to research all our options, I’ve invited Jody DeVere, the Founder/CEO of Ask Patty, to join me on my parenting podcast Wednesday, July 2 from 9-9:30pm EST to discuss eco and family friendly cars. Her website offers fantastic resources specific to women and cars, and I’m sure she’ll offer a myriad of helpful suggestions.

I’d love to hear from eco-conscious families of five plus — what car are you driving and what do you think about it? Leave your answer in the comments or share them on the Motherhood Uncensored podcast from 9-9:30pm EST by calling in (646-915-8634) or chatting at Blog Talk Radio.

More Related Posts on Cars:

Pimpin’ Your Ride: The Green Way

Company Turns Familiar Gas Cars into Electric Vehicles

How Many Hours Do You Have to Work to Fill Your Gas Tank?

With many cities experiencing a real estate “slump”, homeowners around the country are looking for ways to stand out from the slew of homes on the market, while improving their home’s resale value. Other homeowners are planning for the future: a future of ever-rising energy prices.

Regardless of your situation, you may be asking yourself if green home improvements increase the home’s value. The answer isn’t as straight-forward as some might hope.

The old rules still apply…

Before we dive in, there are a few things to consider when thinking about making home improvements – green or not. First, remember the three rules of real estate: location, location, location. The return on your investment will depend on the value of your house and others in the neighborhood, as well as your local housing market. Other factors like the quality of the workmanship, and how soon you move after making the improvements weigh in as well.

One man’s treasure…

That said, there are actually two different values to consider when judging the return on home improvements, according to Dr. Harold Hunt, a research economist at the Real Estate Center at Texas A&M University: value in use and value in exchange.

To explain these concepts, let’s use a little story. Ted owns a home, but is looking to move soon. Ted is concerned about climate change. After some research, Ted decides to make a few eco-friendly improvements around his home that will increase its resale value, including a new energy-efficient air conditioning system and installing bamboo floors. This is exciting to Ted. He looks forward to bragging about going green to all of his friends, and selling the house at a premium.

Bill is looking to buy a house. Bill wants to get the best deal that he can on a new home, closer to work. When Bill sees Ted’s house, he is excited – with high energy costs, the new air conditioning system will save him money. Bill looks forward to seeing how much smaller his energy bills will be in his new home. Oh, and the new floors look nice, too.

OK, back to reality! Ted provides a very good example of value in use. His satisfaction in the green improvements can be measured in both monetary terms (saving money on energy) and non-monetary terms (reducing his impact by using bamboo versus hardwood flooring, and bragging to his friends). Unfortunately, Bill may not value the non-monetary rewards enough to pay a premium for them, illustrating value in exchange.

So how does Bill and Ted’s adventure apply to you? If you’re not planning on moving any time soon, invest in changes are eco-friendly and that you’ll most enjoy. Until green features become mainstream – and corresponding increases in home values can be measured – it’s hard to know what buyers will be willing to pay for. Just keep in mind that come moving time, green amenities and features may not appeal to everyone, but energy- and money-saving green features will.

Hedge your bet…

If you’re building a new house, or diving into a significant remodel, you might want to consider getting it certified as green. Come resell time, certification can provide buyers interested in all kinds of green benefits assurance that they are getting what they paid for.

Nationally, the US Green Building Council, developers of the LEED rating system, have put forth a new residential certification called LEED for Homes. LEED certified homes use less energy, water and natural resources, and their construction creates less waste, among other benefits. LEED is probably the most well-know certification standard in the US, mainly due to its widespread commercial acceptance. Certification by LEED comes with a significant amount of cache, though some feel that the requirements need refinement and that the registration process is cumbersome.

Other nationwide programs include the Environments for Living certification, which includes an energy usage guarantee, and the EnergyStar program, which focuses on home energy efficiency.

Other programs exist locally, like Austin Energy’s Green Building Program and Earth Advantage in Oregon and Boston. For homes certified green by Built Green in Colorado, Countrywide Home Loans even offers ½ point off for home buyers. There is also the Build It Green program in California. For links to programs in your state, check out the Public-Private Partnership for Advanced Housing Technology.

The Big Question: Solar

One of the biggest dreams that many green homeowners have is living “off the grid”, meaning that they can supply all of the energy needed to power their home. If you dream of this, or even if you just dream of reducing your electricity bills, solar is usually part of the equation.

Residential solar installations have always been an expensive prospect, but as technologies have improved and costs have come down, solar has become feasible for many. Still, full systems can cost upwards of $30,000, so it’s important to understand the economics up front. Fortunately, some incentives exist at the state and federal level.

First up, the Feds. For the past three years the US government has offered homeowners a 30% tax credit on solar projects (including photovoltaic systems and solar hot water heaters) up to a maximum of $2,000 per project. However, this incentive is set to expire at the end of the year. Whether these incentives are extended beyond December 31^st remains to be seen – the bill to continue them is currently being filibustered in the Senate (don’t get us started.)

Fortunately, states have stepped into the leadership role, providing incentives beyond those provided at the federal level. For example, California’s Solar Initiative provides incentives for existing homes (amounts vary) through 2017, while the New Solar Homes Partnership does the same for new homes. Many states provide tax breaks and rebates for solar installations, so take a look at the Database of State Incentives for Renewables and Efficiency (DSIRE) to find out what you may qualify for. Depending on where you live, these incentives can reduce your cost by up to half. To learn more about green home improvement incentives and tax breaks, please read this earlier post.

In addition, if you live in a “net metering” state, like California, New Jersey, and Texas, you can be credited for any surplus electricity that you generate. In other words, if you use less energy than you make, your meter literally spins backwards, selling energy back to your provider at retail rates. Currently, 35 states offer net metering – again, check the DSIRE database to determine if you qualify for this big benefit.

However, after applying all of the rebates and incentives, there will still be a hefty price to pay for your newfound energy independence. So how to finance that?

Though commercial institutions have options like Power Purchase Agreements (PPAs) to finance solar installations, residential customers must look to more traditional methods like home equity loans. Most manufacturers are also teaming up with sources of financing to offer loans or lines of credits to homeowners looking to install solar. Sharp and CitiMortgage have such an arrangement.

In addition, some banks, like Wainwright Bank & Trust in Boston, offer a reduced interested rate for “green” home improvement loans (in this case, one point is knocked off the loan’s interest rate). Pennsylvania-based AFC First Financial Corp offers residents in Pennsylvania, Maine, Vermont, Massachusetts, Connecticut, New York, New Jersey, Delaware, Virginia and Maryland up to $20,000 through their EnergyLoan program.

The Big Payback

With the evolution of solar’s efficiencies, cost reductions, and net metering, payback periods for the original homeowner can now be in the single digits. But what about when you sell your home? Can you recoup that investment? Since residential solar installations are still relatively rare, it’s difficult to say. To answer the question, appraisers are using this rule of thumb: half of the cost of a solar installation can be recouped at selling time. Or you can look at it from the energy savings perspective: according to The Appraisal Journal, every $1 decrease in energy costs results in a $10 to $25 increase in home values. If this holds true, eliminating a $1200 annual electricity bill translates into at least a $12,000 increase in home price. Not too shabby.

In general, if your electricity bills are low, under around $100 per month, it’s unlikely to be worth the cost and effort. However, it they are over $200 per month, the economics really sell the project. Regardless of where you land on home improvement projects, big or small, keep in mind that it’s not all about the money. Benefits to the environment are immeasurable!

To find solar installers near you, click here.

To find green real estate for sale across the country, click here.

Image credit: clownfish at Flickr under a Creative Commons license

“Ever increasing numbers of environmental voters and donors live in every part of the country,” LCVAF President Gene Karpinski said. “But America’s clean energy future is not just a local issue. Give Green makes it easy for concerned citizens to support not only local environmental candidates, but also future members of Congress from across the country who will fight for a clean, renewable energy future.

“Bundling” is the somewhat controversial, but legal, process of accepting political contributions from many small individual donors, such as company employees or union members, and combining donations into one large lump sum, which is then given to a candidate.

Strategically, I applaud the LCV for developing an above-board bundling program that allows donors to target their campaign donations to races other than ‘their own.’ However, the fact that there are no limits to the amount of bundled contributions accepted and distributed by a member gives us, in my mind, sufficient reason to keep a close eye on how the broader practice of bundling develops in the future

We totally got buzzed about something so innocuous that we almost walked passed it because it didn’t have a bunch of Green banners proclaiming its greenness. This Verve living system offers what they called a living control system which in simple terms operates like a whole house lighting system. We’ve seen these before but this one operates on battery free, self sustaining technology or what they call energy harvesting radio frequency technology. Pretty scientific for us but the little gizmo works in a panel that reduces the power so that certain switches can come on at certain levels and times. The systems extends bulb life and new homes don’t need copper wiring installed if they use this system. We even like the parent control which operates like the driver’s control when it comes to locking and unlocking car doors. We’re locked for this system.

Falling into our questionably green sector we wanderer around the heating area where Greenwood Wood-fired Hydronic Furnaces displayed a giant green (as in the color) furnace. This highly efficient furnace efficiently creates heat for a nice hydronic system that we had to take notice. It operates at a high 85% efficiency level so not much heat escapes like with old furnaces or even hot water heaters. Even better, the system burns wood completely so the smoke, creosote and ash remain minimal. Here’s our problem - you still have to burn wood. That’s like driving a Prius or the like. Good as it is - you’re still using petroleum.

In the same toasty section the Radiant Gas Fireplaces by Valor showed some green heat. The system uses an electronic ignition system instead of a typical pilot light which saves on fuel and CO2 emissions. These fireplaces heat a single room instead of the whole house and do so with minimal BTU use. As much as they want to convince us that there use of natural gas presents one of the cleanest of the fossil fuels - we still have to look ourselves in the fireplace glass door and say that’s still a fossil fuel.

Next week we look at the old school green products and some crazy ridiculous greenwashing at PCBC.

I have not yet had a chance to read the book, but I recently listened to a Tavis Smiley show interview with Robert where he talked a little about one of the topics discussed in the book - the use of natural gas as a vehicle fuel.

This topic caught my interest as my energy obsessed brain began weaving several threads into a new pattern. One thread is the growing disconnect between the cost per unit energy of natural gas compared to diesel fuel in the United States. Another thread is a story that has been playing on my drive time radio station about the challenges that local school districts are facing as they prepare their student transportation budgets in the face of rapid increases in the cost of diesel fuel. The final thread is my continuing belief that new nuclear power plants have a role to play in alleviating our current energy crisis.

Let me try to weave those thread together in a cohesive way. In Europe, oil prices and natural gas prices have a definite linkage, but in the United States there are often market conditions where one fuel develops a significant cost advantage over the other. Such a situation exists today. To compare different energy fuels, we should think about convenience of storage, flexibility in consumption, delivery mechanisms, and cost per unit energy.

The traders have not made that last bit easy, over the many decades that energy fuels have been bought and sold, some rather unusual units have become the standard. Most of us are familiar with diesel or gasoline prices in $/gal, but natural gas trades in a unit that looks really strange the first time you see it - $/MMBTU. MM is the Roman numeral representation of thousand thousand or 1 million. A reasonably accurate thumb rule is that 7 gallons of diesel fuel contains one MMBTU.

If you take a look at one of my most frequently visited web pages - Bloomberg.com: Energy Prices you will find that heating oil - essentially diesel fuel without the taxes and retail mark-up - is trading today for $3.80 per gallon ($26.60 per MMBTU) while natural gas - again without retail mark-ups or taxes - is trading at about $13.00 per MMBTU. In the wholesale market, natural gas is selling at a 50% discount on a cost per unit heat basis compared to diesel fuel.

I work in Washington, DC and live in Annapolis, MD, so I see a LOT of buses every day. In our national capital city, about 1/3 of the 1500 buses run by the Washington Metro Area Transit Authority (WMATA) use Compressed Natural Gas (CNG) as their fuel source while the rest run on diesel fuel.

Most of the CNG buses have entered service within the past 7 years. They have won support from many environmental groups like the NRDC. Of course, not everyone likes CNG buses, people that prefer to sell diesel fuel and diesel engines, for example, have worked hard to prevent market share losses to the upstart competitor.

The DC area CNG buses are very obvious - some are painted with jungle scenes to emphasize their green cred while others simply have the large-letter marketing slogan - “This Bus Running on Clean Natural Gas” - plastered on three of the four surfaces of the vehicle. CNG works especially well for a large fleet that gets refueled at certain fixed stations and includes enough vehicles to support a specialized group of mechanics and parts inventory. CNG buses cost a bit more than diesel buses, but they can run more cleanly. When the fuel is available for a 50% discount, the economics look pretty attractive.

As school districts struggle with the high cost of diesel fuel for their bus fleets, perhaps it is time for more of them to take another look at CNG if they are planning any large scale bus replacement purchases. The National Renewable Energy Laboratory (NREL) produced a comprehensive study of the choices titled Washington Metropolitan Area Transit Authority: Compressed Natural Gas Transit Bus Evaluation in April 2006. In order to use the study for a current decision, it is important to update the fuel price figures; the market has changed quite a bit since the evaluation period (2001-2002).

One more thread to tie in. One big frustration from my involvement in numerous energy related debates is that people with an anti-nuclear position often dismiss the value of increased use of nuclear power with regard to helping to meet the demand for motor fuels. Their line is that nuclear power is only useful for producing electricity - which is demonstrably not true - and that oil is used for transportation, not electricity production - which is also not true.

All that aside, there should be no argument that natural gas is most definitely used for electricity production (approximately 20% of the electricity in the US comes from burning natural gas), that the increased use of gas in electricity has caused part of the 600% increase in natural gas prices over the past 10 years, and that new nuclear power plants can displace some of that gas to make it more available for other uses. If there is more gas available, it would make CNG vehicles even more competitive against diesel fuel vehicles.

The law of supply and demand has never been repealed - if the demand for gas in electrical power plants goes down, the price of gas will go down until other customers enter the market to purchase that newly available supply.

Photo Credit WMATA Photo by Larry Levine

Posts Related to Compressed Natural Gas and Oil:

• Natural Gas Cars: CNG Fuel Almost Free in Some Parts of the Country
• The Cleanest Cars on Earth?: Honda Civic GX and Other Natural Gas Vehicles (NGVs)
• Offshore Drilling Ban Opens Discussion for Other Domestic Oil Options
• US Will Export $440 Billion For Oil In 2008
• The Growing Need for Fuel Substitution, Efficiency, and Conservation

In finance, an investment is a “thing” you buy with money for the purpose of getting both getting your money back, and getting more money in the form of “interest”, “capital appreciation” or both. This “thing” is a piece of paper called an Investment Product, also known as a Security.

The sale of securities is one of the most highly regulated industries in the U.S. The government agency in charge of these regulations is called the Securities and Exchange Commission (SEC).

The two main types of securities are Equity and Debt.

When you buy an “equity” investment product, you are purchasing a share of ownership in something. Let’s say you and a friend want to buy a rental property, and you agree to split the purchase cost, the ownership, and the profits 50/50. You then hold 50% of the equity in that property. The agreement you write up spelling out this ownership agreement is a type of equity security. Wall Street stocks are another form of equity security.

If instead, a bank loans you money to buy the property, you have actually sold the bank a debt security. The bank provides you with an amount of money, and you agree to pay them a certain amount of Interest plus pay back the original money (principal) over time.

In debt securities, the “buyer” of the debt product (in this case, the bank) doesn’t own the underlying asset, be it a company, property, etc. However, debt securities are often “secured” by the right of the lender to take property away from the borrower should the borrower fail to pay back the interest and the principal. Some debts are secured, and some are unsecured, and this factor influences the risk/reward picture. Wall Street bonds are another form of debt security.

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The reason that I am concerned is that I believe that high oil prices are hurting nearly everyone and the pain will increase as time goes on. The hands on the controls, however, are feeling no pain.

The Organization of Oil Exporting Countries (OPEC) is an internationally recognized cartel established in September, 1960 that holds well publicized meetings on a regular basis to discuss production allocations that are specifically designed to maintain a market price that members agree best meets their internal and external needs. Many of the country representatives to that meeting have spent lengthy careers thinking deeply about oil prices and how best to manage them to benefit the people who send them to the meetings and pay their generous salaries.

Oil market controllers have experienced a number of ups and downs and worked diligently to master the many price influencing tools at their disposal. Those tools may be a bit blunt, but they can be effective if wielded with skill by experienced manipulators. OPEC supplies about 40% of the total world’s oil and has an impact that is disproportionate even against that large total. Its decision are closely watched and often widely respected by large suppliers that are not members. All oil suppliers recognize that they have a very special commodity that responds to even tiny differences between daily supply and daily demand.

During the decades that I have been interested in energy as a study topic, I have heard or read hundreds of reports in oil industry trade publications that indicate the respect given to OPEC as a disciplined cartel that does all suppliers a service by keeping prices at profitable levels.

Though traders can store oil, the volume of daily consumption is so vast that even a 1% over supply situation can fill up storage areas in just a matter of months while a 1% deficit can result in significant shortages in some locations. Like a hot air balloon, there is a potential for a disastrous crash with an inexperienced or poorly coordinated crew, but there is also the potential for a very pleasant ride for those who know what they are doing.

Unfortunately, the basket under an oil fed hot air balloon is not very large and the number of people who benefit from an oil price balloon that never comes back to earth will be rather small. I see few prospects, however, that those of us left on earth will be invited to share in the benefits of the ride any time soon. It is way too much fun for the people in the basket to collect massive quantities of money from the rest of us who seemingly have no means of forcing that balloon to return to earth.

Recently, an oil minister from an OPEC member told the world that his country saw no reason to increase supplies since demand destruction was already working to put supply and demand into balance and a Russian oil and gas executive gleefully predicted that oil prices would reach $250 per barrel in 2009.

At my own water cooler, the objection that I get to my line of thinking is that oil prices experienced a collapse during the mid 1980s and remained low for about 15 years. They tell me that proves that a period of high prices will almost inevitably be followed by a period of low prices caused by the combination of new supplies encouraged by high prices and reduced demand caused by a reaction to the high prices. Their interpretation of oil price history is that the conservation efforts install a long term change in consumer habits. Apparently they think that OPEC recognizes this and will reduce prices in time to avoid a long term loss of market share.

The difficulty that I have in accepting this interpretation is that low energy prices through the 1980s and 1990s were driven not by a reduction in demand, but by a relentless increase in the available supply of useful energy. Most of the new supply came into the market from sources outside of OPEC.

Total energy use did not fall after the oil shocks of the 1970s, but the annual rate of increase slowed. Total supply actually increased substantially as new production areas like the North Slope of Alaska and the North Sea came on line at the same time as new nuclear power plants added the energy equivalent of 12 million barrels of oil per day to the world supply.

Today there are no major production areas that are beginning operation and there are not any massive new nuclear plant programs with plants ready to connect to the grid. The time delays required under current laws are going to make it difficult to change supply rapidly enough to make much difference for at least a few years.

We are in for a long slog of high prices - unless the world’s political leadership takes action to enable massive new supplies to reach the market more quickly than is currently predicted. Jawboning might just work, but it is a long shot. It just might be that the balloon will remain aloft for a long time without popping or even leaking very much.

Photo credit:Hot Air Balloon - used under Creative Commons license from aoife mac

Related Posts:
Three Hidden Costs of High Oil Prices
T. Boone Pickens Says Peak Oil Reached, Plans World’s Largest Wind Farm
The Big Oil Company Scam

However, ecopreneurs go beyond organic, beyond compliance to laws and regulations (or redefine them), beyond consumerism, beyond minimum wages and beyond the free market economy to conduct business. Entrepreneurs become ecopreneurs when their spirit, boldness, courage and determination not only transform the landscape but coalescence into a movement to transform global problems into opportunities for restoration and healing. After talking with thousands of ecopreneurs over the past decade, we’ve discovered quite a few distinguishing characteristics reflected in the chart to the right. Additionally, ecopreneurs seem to be more focused on cooperation and collaboration than competition as the means to get ahead in the world. That’s why so many form innovative partnerships or creative interdependencies with fellow ecopreneurs — just as in nature.

The most progressive ecopreneurial enterprises address more than one of the many challenges facing us. Their business might foster fair trade relationships (promoting economic justice and equity), generate more energy from renewable energy sources than it uses (severing our addiction to fossil fuels) and even serve local, seasonal, vegetarian, and organic meals to those who work in the business.

Ecopreneurs take a penchant for innovation and problem-solving, applying it to meaningful purpose. Ecopreneurs emblazen the re-greening of Earth, restoring degraded land, cleaning the air, building healthy and safe homes, devising clean, renewable energy sources, offering prevention oriented alternatives to treatment focused healthcare and helping preserve or restore the ecological and cultural wonders of the planet by changing the way we experience travel, just to name a few. While entrepreneurs make their money work for them through the businesses they create, or assets they accumulate, ecopreneurs use their businesses to implement their Earth Mission. If you’re earning a living now, perhaps working for a company or organization, then becoming an ecopreneur will revolutionize how you think about money, your livelihood, your life.

While many entrepreneurs may be motivated, at least in part, to the mantra of “greed is great” on their journey to becoming a millionaire, growing numbers of ecopreneurs are adopting a different course, focusing on solving the problems facing society through the businesses they create, greening their bottom line. Many are redefining their wealth, as we have, not by the size of their bank account or square footage of their home. Wealth is defined by life’s tangibles: health, wellness, meaningful work, vibrant community life and family.

In the end, ecopreneurs are all about making a difference for the planet, fellow citizens, and our community. As we write about in ECOpreneuring, ecopreneurs generate revenues to run their business based on their passion to make the world a better place. Not, as the late Milton Friedman expounded: to make profits for a relatively few shareholders.

Financial ROI (profit) is vital to green investing. This can sound jarring to green-minded folks because for quite a long time, the profits of most businesses have come at the expense of human and ecological health. Yet the underlying system holds much promise. I’m seeing a new generation of green businesses that align profits and green objectives to create powerful engines for economic transformation. These businesses are building the reality envisioned by a previous generation of green non-profit leaders.

Financial ROI is important because it impacts the rate and scale at which this new reality can unfold.

Let’s say two companies are offering comparable solutions to protecting native forest habitat. The company with the higher ROI will most likely have the financial capacity to scale-up their solution, resulting in more forests being protected per investment dollar.

ABC’s: What is Financial ROI?

Financial ROI describes the comparative monetary return of different investments. For example, a bank certificate of deposit paying 4% annual interest will return $4.00 of profit for each $100.00 invested.

In the stock market, the term “price to earnings ratio”, or “P/E” for short, provides a shorthand description of this relationship between the amount invested and the ROI. In the bank CD example, you would have to pay $100.00 (the price) to get $4.00 of earnings (a.k.a. “profits”), or a P/E of 25. All traded stocks are rated by a “trailing P/E” — the current price divided by the previous 12 months’ earnings.

To a green investor, the combination of green values, social values, and the financial ROI, come together to make the complete case for making a particular investment.

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But if you travel by car, you can still cut your fuel usage, save money and reduce your carbon footprint by driving smart.

1. Look into going by train or bus instead of by car or plane.

Taking a train or a bus, instead of driving or flying, results in less global warming pollution per person for the miles traveled (and may cost less, too).

On average, taking a trip by bus produces the least amount of greenhouse gas per passenger mile, followed by train travel, then air. Cars, light trucks and motorcycles contribute the most to global warming pollution.

Put another way:

• Air travel results in nearly two times as much global warming pollution as intercity bus travel.
• Rail produces slightly more greenhouse gas emissions than buses.
• Cars, trucks and motorcycles produce three times the pollution of buses.

These comparisons assume the vehicles are not filled to capacity on average. Trains come out even better in comparison to planes when both are full. (Note that Amtrak offers discounts on some routes for people over age 62.)

2. If you decide on a road trip, get your car in good shape.

Getting better gas mileage is no longer just about cutting greenhouse gas emissions. It’s also about saving some serious money.

By following these rules of thumb, you will save gas and money — and your car will last longer.

• Keep your engine tuned properly. Checking spark plugs, oxygen sensors, air filters, hoses and belts are a few examples of maintenance that can save a vehicle owner up to 165 gallons of gas per year — for a potential savings of $625 a year (based on 12,000 miles of driving per year and $3.79 a gallon, nationwide average as of 5/19/2008).
• Check the tires. Have your wheels aligned and keep your tires properly inflated. Low tire pressure wastes over two million gallons of gasoline in the U.S. every day. Keeping your tires properly inflated raises your car’s gas mileage by about 3.3 percent.

3. If you’re renting, choose a fuel efficient car.

The rental car business is slowly turning over a green leaf. Many of the major national rental companies (such as Avis, Budget, Enterprise and Hertz) are offering a small number of fuel-sipping hybrids like the Toyota Prius in selected cities.

If a hybrid is not available, a subcompact, compact or economy car usually goes easier on the gas and is less costly to rent than a larger vehicle.

Get more details at Yahoo’s Green Center and find the top cars by green rating to help you select a rental car that meets your family’s needs.

4. Plan your trip well.

Part of the fun of a road trip is the adventure of exploring unknown territory. But getting lost and going miles out of your way is no fun — and wastes precious gas. So map out your route and keep maps handy to recheck.

A car navigation system is one high-tech way to keep on track in unfamiliar areas and get to your destination without wasting time and fuel.

5. Pile your friends and family in the same car.

Is one big, packed car better than two small, half-empty cars? The answer depends on the average gas mileage of the vehicles being compared.

But in general, if the larger car has a fuel economy at least half that of the two small cars, then it is more efficient to take the one large car. Here’s the math.

Take this hypothetical example: an SUV that gets 15 mpg on average versus two cars that get 30 mpg. For two people on a 30-mile trip, you’d burn roughly two gallons of gas in the SUV , and you’d also burn two gallons in the two cars (one gallon per car times two cars).

So in this case, the two options consume the same amount of gas. If the SUV had higher gas mileage, it would be the better option, and if it had lower gas mileage, it would be the worse option.

The average car in the U.S. carries 1.6 passengers, so if you carry more than that, you’re helping to reduce the nation’s carbon footprint. Plus, you can pool expenses and save on gasoline.

6. When you’re finally on the road, drive gently.

You can increase your gas mileage by as much as 50 percent for highway driving (and by five percent for stop-and-go city driving) simply by accelerating and decelerating smoothly and slowly. Aggressive driving, such as mashing down the accelerator or the brake, uses an extra 125 gallons a year on average — so by driving gently you can save $473 a year in today’s prices.

7. Follow the speed limit.

You’d be surprised at how much fuel is squandered by driving over 60 miles per hour. Generally, each 5 mph over 60 mph you go is like paying an extra 20 cents per gallon of gas.

To keep your speed down while taking in more local color, consider taking less-traveled back roads, rather than the Interstates. It’s easier to keep the speedometer below 60 mph when other cars aren’t whizzing by you at 85 miles an hour!

8. Avoid unnecessary idling.

When you are unloading or packing your car, turn off the engine. An idling car gets zero miles to the gallon and contributes to global warming pollution. Contrary to popular belief, restarting your car does not burn more fuel than leaving it idling.

Learn more about cars and global warming at Environmental Defense Fund.

Sources

• CBS News: “Rental Cars Slowly Going Green“
• fueleconomy.gov, U.S. Department of Energy, U.S. Environmental Protection Agency
• “The Consumer’s Guide to Effective Environmental Choices: Practical Advice from The Union of Concerned Scientists” by Michael Brower and Warren Leon.
• Transportation Energy Data Book, U.S. Department of Energy