Actions speak louder than words: Awareness is never enough

Welcome

• Overview of market failure

• Prove that awareness doesn't lead to action

• Practical reality of this

• Creating action

Types of market failure

• Common property

• Public goods

• Externalities (positive and negative)

• Imperfect and asymmetric information

• Increasing returns

• Market power

…Complex issues often require complex solutions.

Tragedy of the Commons

Each man is locked into a system that compels him to increase his herd without limit - in a world that is limited. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all.Hardin

Tragedy of the Commons 2.0

Each man is locked into a system that compels him to increase his herd without limit - in a world that is limited. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all. Hardin 1968

Each country is locked into a system that compels them to increase their GDP without limit - in a world that is limited. Ruin is the destination toward which countries rush, each pursuing their own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all. Holden 2010

Types of market failure

• Common property

• Public goods

• Externalities (positive and negative)

• Imperfect and asymmetric information

• Increasing returns

• Market power

…Complex issues often require complex solutions.

Have you ever..?

The reality of market failure

• Perception is reality – what do businesses think?

• How market failure impacts on the different stages of the business relationship

• How the ENWORKS model overcomes some of these

• Question and answer discussion

General population (100%)

No action taken (67%)

Action taken (33%)

Plan to take action (20%)

• 26% heard of term Resource Efficiency• 82% think it’s a good idea• 54% haven’t changed how they use resources in the recession• 71% haven’t sought advice• 6% couldn’t find what they wanted• 51% believe no barriers to RE• Cost perception

• 33% couldn’t see any benefit from improving their resource efficiency

• 14% plan to take action

• Lack focus

• 85% saw a business benefit• 64 - 75% investment hasn’t resulted in cost reductions• 37% have increased recycling• 33% plan to continue with resource efficiency• Lack focus

• 23% / 46% say resource efficiency is part of their business plan• Lack focus• Low investment• Perception of low return

General population (100%)

No action taken (67%)

Action taken (33%)

Plan to take action (20%)

• 26% heard of term Resource Efficiency• 82% think it’s a good idea• 54% haven’t changed how they use resources in the recession• 71% haven’t sought advice• 6% couldn’t find what they wanted• 51% believe no barriers to RE• Cost perception

• 33% couldn’t see any benefit from improving their resource efficiency

• 14% plan to take action

• Lack focus

• 85% saw a business benefit• 64 - 75% investment hasn’t resulted in cost reductions• 37% have increased recycling• 33% plan to continue with resource efficiency• Lack focus

• 23% / 46% say resource efficiency is part of their business plan• Lack focus• Low investment• Perception of low return

General population (100%)

No action taken (67%)

Action taken (33%)

Plan to take action (20%)

• 26% heard of term Resource Efficiency• 82% think it’s a good idea• 54% haven’t changed how they use resources in the recession• 71% haven’t sought advice• 6% couldn’t find what they wanted• 51% believe no barriers to RE• Cost perception

• 33% couldn’t see any benefit from improving their resource efficiency

• 14% plan to take action

• Lack focus

• 85% saw a business benefit• 64 - 75% investment hasn’t resulted in cost reductions• 37% have increased recycling• 33% plan to continue with resource efficiency• Lack focus

• 23% / 46% say resource efficiency is part of their business plan• Lack focus• Low investment• Perception of low return

General population (100%)

No action taken (67%)

Action taken (33%)

Plan to take action (20%)

• 26% heard of term Resource Efficiency• 82% think it’s a good idea• 54% haven’t changed how they use resources in the recession• 71% haven’t sought advice• 6% couldn’t find what they wanted• 51% believe no barriers to RE• Cost perception

• 33% couldn’t see any benefit from improving their resource efficiency

• 14% plan to take action

• Lack focus

• 85% saw a business benefit• 64 - 75% investment hasn’t resulted in cost reductions• 37% have increased recycling• 33% plan to continue with resource efficiency• Lack focus

• 23% / 46% say resource efficiency is part of their business plan• Lack focus• Low investment• Perception of low return

Perceptions

• Not relevant

• Threat not opportunity

• Resource efficiency = utility management

• Need to invest in equipment to save energy

• Investment will not reduce costs

• Time consuming

Achieved savings

Savings from opportunities with zero capital cost

-

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

Behaviouralchange

Clean design Premises Processimprovement

Specification/

procurement

New ETS Unknown

Resource Reduction Methods

Ann

ual s

avin

gs (£

)

General population (100%)

No action taken (67%)

Action taken (33%)

Plan to take action (20%)

• 26% heard of term Resource Efficiency• 82% think it’s a good idea• 54% haven’t changed how they use resources in the recession• 71% haven’t sought advice• 6% couldn’t find what they wanted• 51% believe no barriers to RE• Cost perception

• 33% couldn’t see any benefit from improving their resource efficiency

• 14% plan to take action

• Lack focus

• 85% saw a business benefit• 64 - 75% investment hasn’t resulted in cost reductions• 37% have increased recycling• 33% plan to continue with resource efficiency• Lack focus

• 23% / 46% say resource efficiency is part of their business plan• Lack focus• Low investment• Perception of low return