Wal-Mart environmentalism
Acton Institute Powerblog

Wal-Mart environmentalism

“The environment is begging for the Wal-Mart business model,” says H. Lee Scott Jr., CEO of Wal-Mart Stores in a NYT article, “Power-Sipping Bulbs Get Backing From Wal-Mart.”

The piece discusses Wal-Mart’s campaign to increase the sales of compact fluorescent bulbs, as compared to traditional incandescent bulbs. As Michael Barbaro writes, “A compact fluorescent has clear advantages over the widely used incandescent light — it uses 75 percent less electricity, lasts 10 times longer, produces 450 pounds fewer greenhouse gases from power plants and saves consumers $30 over the life of each bulb. But it is eight times as expensive as a traditional bulb, gives off a harsher light and has a peculiar appearance.”

I’ve converted probably half of the bulbs in my home to CFLs (compact fluorescent lights), but have run into problems when trying to use them in some places. Lights that use dimmer switches, for instance, don’t work well with CFLs. And some CFLs won’t fit into light fixtures designed to accommodate incandescent bulbs.

Wal-Mart’s clout has begun to affect the light bulb manufacturing business, as producers like GE struggle to change their emphasis from production of incandescents to CFLs.

And on the demand side, what’s called for in convincing consumers to go with the CFLs is a basic economic lesson: you are sometimes better off spending more in the short-term for long-term gain: “Wal-Mart will have to persuade its traditional consumers that it is worth paying a bit more at the checkout counter to save a significant amount money down the line, a seemingly simple task that few companies ever accomplish. It is particularly difficult at a retailer that has long emphasized ‘always low prices.'”

As is so often the case, the best economic decision is the one that makes best use of both financial and environmental resources.

Update: This story is getting major attention across the blogosphere and MSM, including a NYT editorial here, and posts here and here.

Jordan J. Ballor

Jordan J. Ballor (Dr. theol., University of Zurich; Ph.D., Calvin Theological Seminary) is director of research at the Center for Religion, Culture & Democracy, an initiative of the First Liberty Institute. He has previously held research positions at the Acton Institute and Vrije Universiteit Amsterdam, and has authored multiple books, including a forthcoming introduction to the public theology of Abraham Kuyper. Working with Lexham Press, he served as a general editor for the 12 volume Abraham Kuyper Collected Works in Public Theology series, and his research can be found in publications including Journal of Markets & Morality, Journal of Religion, Scottish Journal of Theology, Reformation & Renaissance Review, Journal of the History of Economic Thought, Faith & Economics, and Calvin Theological Journal. He is also associate director of the Junius Institute for Digital Reformation Research at Calvin Theological Seminary and the Henry Institute for the Study of Christianity & Politics at Calvin University.