actions speak louder than words: awareness is never enough
TRANSCRIPT
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