economics of green marketing

1. Energy Usage and its Impact on The
Consumption of Goods & Services

2. • We use energy for the the usage of products
and services, but the most of energy sources
we use are non-renewable.
e.g- 57% of the electricity in India is produced
from the coal and the petroleum.
• And the other sources of the energy are quite
expensive

3. Two situations arise
Either we can use traditional products and
services which have low fixed costs, and use
more energy. e.g filament light bulbs,
traditional cars.
Or, we can use the products and services, which
use high technology, and have more fixed
costs, but use less energy.e.g L.E.D TV’s and
hybrid cars.

4. The customers purchase the goods and
services for satisfying their needs and wants
and not for saving the environment .
The customers face monetary scarcity, and in
order to satisfy their number of needs and
wants, they have limited money for meeting
up each requirement.
Thus they have to make choices for a specific
product from the number of products

5. 0
10
20
30
40
50
60
10 20 30 40 50 60
Operatingcostsintermsof
energy
fixed…
Relationship b/w fixed and operating
costs
x y
50 0
40 10
30 20

6. Impact of Energy Usage
BY The Concept of indifference curve;
A person X if willing to spend 50 units of money for
a product or service for a specific duration of
time:
• he can spend either a product of fixed cost 40
units and operating cost 10 units of money, on its
energy usage.
• Or he can purchase a product of cost 50 units,
and no operating cost in terms of energy usage.
• or as indicated by the other combinations on the
chart.

7. Consequences
• With increase in the costs of energy, the consumption
of traditional goods and services will be reduced
whereas the consumption of the modern products
which use less energy will increase.
• The products which use less energy and have same
costs, can be positioned as green products, and more
value can be delivered to the customers.
• The products which use less energy to operate can also
help in solving the issue of sustainable development of
business.

8. References
• https://www.google.co.in/search?q=energy+c
onsumption+impact+on+goods+and+services
&espv=2&biw=1366&bih=662&source=lnms&
tbm=isch&sa=X&ved=0ahUKEwjrutWH9KzQA
hVGOBQKHVPEBqsQ_AUIBygC#imgrc=XkX9_U
lvMZXaQM%3A