How is the Credit Crunch affecting the Environment?
Monday, October 3rd, 2011
The tough recession that we are currently in has meant that there has been a sharp price rise in the cost of heating our homes with all of the top energy companies increasing their gas and electricity prices.
Even though this is not good news for consumers, does this credit crunch period we are experiencing effect the environment in a positive or negative way?
At the start of the year The Guardian newspaper reported on a dramatic fall in greenhouse emissions and cited the recession as being the main reason behind this fall. However these findings were in relation to industrial and business output and mainly the construction and transport sectors as these were hit the hardest by the recession.
But, what about individual household emissions? The Guardian felt that households were stubborn and that their greenhouse gas emissions remain high. The reasons behind this were the growth in population as well as the growth in single homeownership. There are also other factors which I feel come into the equation such as people are not going out as much during the credit crunch leading to a greater usage of plasma televisions and computers, therefore increasing home energy consumption and usage figures.
It is also felt that households are often not encouraged enough to think about the environment. And with the Energy Saving Trust who were specifically set-up to help households think about the environment having their funding cut in half by the government, it is little wonder households aren’t getting the message.
However, these recessional times have forced the government to consider the environment and our energy usage especially as there are predetermined climate change targets for the UK to reach. The Green Deal which is going through parliament at present is the main driving force being introduced by the government to try and revolutionise energy efficiency. The scheme aims to offer households energy saving improvements throughout their homes. The cost will be paid for upfront by private firms however the money will be recouped through the household’s energy bill. It is assumed that the energy saved will more than pay for the cost of these improvements.
Therefore, does the credit crunch effect the environment in a positive or negative way when looked at in relation to households? In theory it should be good thing as it should be assumed that people will have less disposable income and will be looking at active ways to reduce their expenditure. However, this is not the case. Even though individuals may reduce the amount they spend on luxuries such as car trips and holidays therefore reducing some gas emissions, they are reluctant to change their household energy usage and budget. This is because many people feel that this is a luxury and a comfort that they should try and retain for a healthy and happy household during the credit crunch.
Guest Article by Sarah Wain


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My name is Alan Potts and I'm the Editor of the Gasboiler-BUYability web site and Managing Director of BUYability Limited. You can connect with me or keep up to date with new posts on this blog via the following social media sites: 








