Investing In Green
Many cities and counties are investing in environmentally friendly, or “green,” technology, such as alternatively fueled vehicles and energy-efficient buildings. The initial investment for green technology is often higher than regular technology, but proponents say the long-term savings compensate for that cost. American City & County asked the readers of its weekly e-mail newsletter if green technology is a good financial and environmental investment. Below are some of the responses.
“In 2002, [Little Rock, Ark.,] implemented energy-efficient upgrades to its facilities, including solar-heated domestic hot water, geothermal heat pumps, and a city-wide traffic and pedestrian signal retrofit. As a result of this project, the city generates more than $300,000 annually in energy savings. Additionally, we will soon break ground on a methane gas recovery system [at a Little Rock landfill] that will create more than $7 million in [methane sales to a local manufacturer] for the city over the next 15 years. For Little Rock, green projects are more than just a good investment, they’re the future of municipal planning, and we’re excited to be at the forefront of this movement.”
— Bruce Moore, city manager, Little Rock, Ark.
“The right green design and green technology can be an excellent investment. For example, ‘right sizing’ [high-voltage alternating current] for a building with energy-efficient windows and proper insulation will save on up-front costs because the ‘right’ equipment size will be smaller than the conventional size. Also, the operating cost of fuel and electricity in green buildings can be cut by 20 to 50 percent.
Of course, banks and other investors have to [change to] life-cycle calculations [instead of] more traditional [return on investment] equations in order to really see the value of many green investments, since payback times associated with good green tech investments often exceed three years. [Also,] a major property insurer [is offering lower rates on] ‘commissioned’ green buildings [because they] are less likely to have electric fires or water damage [from faulty] plumbing systems that [can] lead to costly insurance claims.”
— Nancy Anderson, executive director, The Sallan Foundation, New York