Editorial: All Rise for the Green Court
by Richard Babyak
July 1, 2008
A man steps out onto the patio of an English pub, sets down
his pint of bitter, and lights a cigarette. He zips up his jacket and grumbles
about the damp chill in the air, and that grumbling sets off a chain of events
with implications for the global appliance industry. File it under the Law of
Unintended Consequences. England banned smoking in bars, restaurants, and other
public places last year, and puffing patrons were not happy about stepping out
into the cold to smoke. Concerned over losing business, pub owners began
installing gas patio heaters to make their outside customers more comfortable.
The trend quickly spread, and sales of patio heaters soared. Good news for the
appliance industry, right? Not exactly.
Environmentalists took note of this phenomenon, and soon
they were the ones grumbling. They talked about the absurdity of trying to heat
the Great Outdoors, the amount of energy wasted doing so, and, most
importantly, the resulting increase of carbon dioxide emissions and their
effect on global warming. Before long, the critics were tossing out numbers to
back up their claims. One study, based on usage “estimates” and sales
“projections” asserted that English pub patio heaters by themselves would
increase carbon dioxide emissions by 165,000 metric tons per year. Others
contested such studies, saying that usage estimates were inaccurate and
conclusions lacked context and comparisons to other products. They fought back
with figures of their own, suggesting that use of plasma televisions in the U.K. accounted for many times more
carbon dioxide emissions than patio heaters.
But the
environmental groups continued bashing patio heaters, calling them planet
wreckers and carbon-belching monstrosities. The groups failed to obtain a
government ban, but got the next best thing. Earlier this year, many large
national retailers in England caved into pressure and agreed to stop selling
patio heaters. Other outlets followed suit, making the appliance harder to
find, even for the homeowner wanting one for occasional use. Now, regardless of
one’s position on patio heaters, smoking, or even drinking, the important point
is that an appliance desired by customers is being removed from a market by
third-party social pressure, not by government or agency regulation. Study well
this little drama, as it is very likely a portent of things to come.
A
growing number of companies are pursuing the concept of sustainability, wanting
to be good corporate citizens. That trend includes retailers. You can go to
walmart.com/green to see how the goal is altering that company’s product mix.
Promoting sustainability is mostly a good thing when pursued rationally, but
green proclamations also place a company in the crosshairs. For example, the
organization Greenpeace periodically attacks specific makers of consumer
electronics for failing its “green electronics” test. Is the test fair? If not,
what could anyone do about it? What if the concept of products having to pass a
“green test” catches on?
Envision a scenario where an
environmental group slaps a big, red X on a popular product for failing its
green test. Important retailers or distributors, in an effort to establish
their green credentials, decide to stop carrying that product. And just like
that it all begins, the rise of the Green Court, a body of self-appointed
judges with unlimited jurisdiction whose powers supercede both the free market
and the government. The dangers of such a court are numerous, but unfairness
tops the list. In the April 21, 2008, edition of Newsweek (p. 42), a cofounder
of Greenpeace explains that he left the group because of the way it uses
sensationalism, misinformation, and fear tactics. Unfortunately, such practices
will be standard operating procedure in the Green Court, which will make its
own rules, and allow no defense or appeal. And those who are hastily convicted
may, like our pub crawler, find themselves out in the cold.
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