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The consumer who grabs the half-gallon of organic milk instead of regular milk knows something about the cost of "going green." It's high.
A recent study by the U.S. Department of Agriculture spells it out. Nationally, organic milk cost 98% more than regular milk in 2004: $4.01 for organic, $2.02 for regular, a price difference of $1.99. That's almost enough to buy another half-gallon of regular milk.
Prices of organic produce, poultry and eggs are also higher, far more than 200% higher in the case of poultry, according to the USDA. But green-minded consumers -- who care about their health, as well as "green" issues like global warming, pollution and loss of wildlife -- are also in the market for natural cleaning products, sustainably crafted furniture and hybrid cars, a rapidly growing marketplace of products that almost always cost more than their conventional counterparts.
Take the "giddy-up short sleeve shirt" for women by Nau, a new clothing company in Portland, Ore. Made out of organic cotton poplin and a little spandex, the tailored shirt, with a curved hem and snaps up the front, sells for $95. Yikes!
So what's a consumer who is on a budget but wants to "go green" supposed to do? Below are two steps that will make the job a lot easier:
1. Think about why you are buying green in the first place
A consumer worried about global warming may consider buying a hybrid car, which can get 50 miles to the gallon. Hybrid cars, however, tend to cost more: The manufacturer's suggested retail price of the 2007 Honda Civic Hybrid is $22,600, 51% more than lowest-priced Honda Civic Sedan.For the green consumer on a budget, a better choice would be to hang on to the old car and drive it less. "You can come out with same amount of fuel savings over the course of a year if you can find ways to not drive your car -- get on your bike, walk," says Seth Bauer, editorial director of The Green Guide, an online consumer resource.
Buying less and wasting less is the easiest, cheapest way to show concern for the environment. "The simplest thing you can do is not waste as much as we all do right and left in our daily lives," Bauer says. "The fundamental question is, what don't you need?"
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Many consumers turn to "green" products like laundry detergents and household cleaners for their health, often because they are allergic to perfumes or chemical additives. But making laundry detergents out of natural instead of synthetic materials costs more, says John Murphy, senior vice president of sales for Seventh Generation, which makes "nontoxic and environmentally safe" household products. "The conventional brands just don't go through the same level of diligence we do around scent and surfactants," Murphy says.
Seventh Generation products also cost more because retailers use the larger profit margins on the company's products to offset thinner margins on better-known brands. The company is working with some retailers to learn the "optimum price point" for drawing in the green customer.
2. Think about purchases and actions that give the most bang for the buck
Environmentally safe cleaning products will prevent pollution and cut back on the use of petroleum products. But reducing energy use is "the most significant environmental issue that people can impact through their personal choices," says Warren Leon, co-author with Michael Brower of "The Consumer's Guide to Effective Environmental Choices: Practical Advice From the Union of Concerned Scientists."Energy use contributes to global warming, air pollution and other environmental problems, and by cutting back, consumers actually save money, Leon says.
Some easy suggestions are to wash clothes in cold water, pull the plug on TVs and VCRs when they aren't in use, weatherstrip and caulk windows and doors, and switch to compact fluorescent light bulbs, which are three or four times as efficient as incandescent bulbs, according to the "Consumer's Guide." CFLs can cost more upfront -- perhaps up to $2.50 a bulb instead of 50 cents -- but they last longer. "The cost-effectiveness of them is so great that if you're on a budget, there is even more reason to do it," Leon says.
Continued: Make an organic budget