What’s the payback?
An Environmental Economics Editorial
by Dennis Briley, President, RENEW Board of Directors
We have been acculturated to react with an expected response, “But, what is the payback?” when presented with an investment opportunity. “What’s the payback?” of course means the simple payback method of judging monetary value of an investment. If investment dollars are involved then it is purely an economics question, isn’t it? Yes and no, particularly when the investment involves energy or other environmental resource values. But, we don’t yet seem to be able to articulate a simple, concise, effective alternative way of discussing what economists call “intangibles.”
When considering a capital investment in energy efficiency or renewable energy, wouldn’t we like the financial question replaced with, how much energy, fossil fuel or greenhouse gases am I saving, and is this the best way to obtain the greatest environmental benefit?
It is my observation that earth care is growing momentum. The public seems to be considering renewable energy with favor. Perhaps the time is here for reframing the renewable energy investment as a gift to the earth.
An investment in renewables is a choice, like giving a gift. And choosing to give a gift is viewed as a good thing. We feel good when we give a gift. With an endowment gift to the planet’s health, we don’t need to consider payback.
Marketing renewable energy as a gift would involve a cultural change — a sensitive one, but one with emerging opportunities. We certainly need to acknowledge and respect the mind set of each customer, but to grow the market we need to coax out the fresh insight that may be hidden in the customer’s ever evolving mind.
I hope that we are practicing and experimenting with this dialogue in renewable energy marketing, learning from the process and educating each other.
