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Economics is about the arrangements that societies make for the use and distribution of scarce resources (Esty and Simmons 13). Environmental problems make for [url=http://www.mxitcms.com/abercrombie/]abercrombie milano[/url] the use and distribution of scarce resources. Environmental problems would not arise if there was abundance of resources. There would be plentiful supplies of energy, raw materials and food. Most of the waste products could be easily and harmlessly disposed of if there were boundless oceans and atmosphere and there would be enough open spaces and countryside for everyone. However, there is no abundance of resources and many of our environmental problems occur simply because we have tended to treat the environment as a limitless resource. Scarcity requires us to make choices, often very difficult ones, by comparing alternatives. If limited resources are fully employed more of something can only be obtained by having less of something else. So, for example, extra resources devoted to cleaning up the environment may mean fewer resources devoted to consumer goods.
The government believes that economic prosperity and social progress must be achieved while protecting the environment, to ensure a better quality of life for everyone, today and for future generations. It is committed to tackling global problems such as climate change, and to improving the local environment in towns, cities and rural areas (Esty and Simmons 7). The new steps to improve the environment and urban areas can be achieved by; improving support for environmentally - friendly waste disposal, such as recycling, while continuing to support local community environmental projects. Minimizing the amount of waste sent to land fill, an environmentally harmful form of disposal, by consulting on increases in the landfill tax. Consulting on a new proposal to allow local authorities to spend increases in business rates revenue in local priorities including regeneration of urban areas.From the perspective of the real estate investor and user, an eco - aware approach to the property and built environment offers substantial [url=http://www.ilyav.com/uggpascher.php]boots ugg pas cher[/url] opportunities to increased value (Musnikow).
The real estate investor and user can realize greater value in many forms such as, lower costs in operating buildings, higher real estate valuation because of higher net income, higher productivity of money invested in real estate assets, higher productivity from the work force, lower costs associated with reduced workforce and positive company image associated with eco-design (Stead, Jean and MarkCompared with traditional ways of doing business, many eco - business real estate opportunities are not yet well defined or documented. This is a new way of thinking for most people in real estate. In the past, the topic of environment has generally meant increased cost [url=http://www.1855sacramento.com/peuterey.php]peuterey[/url] and time - instead of cost savings, increased value and increase in human health and productivity (Esty and Simmons 17 ). Often eco - business opportunities suggest changes in the way business relationships are conducted. In most cases, boundaries that inhibit communication or economic linkages need to be spanned both physically and conceptually.For the real estate manager, resource efficiency in building and business park operations is an important area for profitability. Energy efficiency is where many developers and users are [url=http://www.rtnagel.com/louboutin.php]louboutin[/url] rethinking the way they do business and are finding substantial cost savings. Maximization of energy efficiency requires spanning specific aspects often disconnected in producing and operating real estate.
In most cases, a well designed eco industrial approach saves money. To realize the savings, real estate investors and users need to share not only the processes of design and building but also the distribution of the gains. For example, energy efficient design will save money for the party responsible for [url=http://www.thehygienerevolution.com/barbour.php]barbour[/url] the energy bills, usually the occupant (Musnikow). To motivate the developer or investor to save somebody else's money, some portion of the savings should go to the developer. Leases can be restructured [url=http://www.1855sacramento.com/peuterey.php]peuterey outlet[/url] to distribute a portion of the energy savings to the developer or owner, resulting in higher net income to the developer or owner. When a developer builds an energy efficient building to be sold, a higher building value can be calculated based on the higher net income allowed by energy savings. Building shells can be energy producers - thus recognizing advantages from conservation and generation of energy. Neither of these allowances is part of mainstream real estate practice.
Change through green design and programming not only affects costs and revenues but also their timings. For example, there maybe higher design fees incurred early in the building process to achieve a green building design, or construction costs may be higher, to be later offset by higher operating income. For a company that builds and owns its own facilities, these changes reconcile favorably. Labor and material efficiency can be enhanced by sharing or pooling of resources used in company operating as well as by sharing building and park operation and maintenance.Overhead costs are also reduced (Musnikow). [url=http://www.thehygienerevolution.com/barbour.php]barbour paris[/url] Capital can be conserved further, as many resources can be purchased only as needed instead of being incurred as a constant cost. Several important changes create an environment where resources are shared. First, a philosophical commitment to eco - industrial principles should be a core business value as should willingness to make the necessary changes. A company needs to be open to doing business differently. Second, the physical design and business programming of a business park changes. This is reflected in the site plan and architectural and engineering specification.
Some eco - business benefits are less tangible, but they contribute important gains to business operations (Stead, Jean and Mark). For example, green buildings generally lead to a more efficient programming. Less absenteeism and workforce turnover also results from [url=http://www.sandvikfw.net/shopuk.php]hollister sale[/url] these efficiencies. The superior working environment produced by green building design, as well as the company culture created by adopting eco- business principles, attracts and retains employees. These factors lead a company's work force being more productive, increasing g return on labor. When buildings and company operations reduce costs, an increased amount of capital available for other key corporate priorities is realized (Wall). The increased profitability available from eco - business principles in building design and programming and in company operations comes at a time when in business every aspect is being examined to increase shareholder value and to focus the company on its core competencies.
For long term value creation and later competitive advantage over less - well - designed buildings, eco-industrial approaches can yield higher resale returns after initial costs may already have been amortized, because the building owner can realize and offer buyers lower fixed operating costs. Further association with other higher value firms should also increase the long term value of the location and the property asset. Developers move beyond selling space to providing functionality, flexibility and service to the client. This added value can be translated into higher profits (Musnikow).
Some costs are obvious and relatively short - term: inputs used, energy consumed, time and money spent on meeting regulatory requirements. More fundamentally, a great deal of pollution is waste and a function of outmoded production processes or poor product design (Wall). So improving the resource productivity of a business - the amount of material or energy need per unit of output - goes straight to the bottom line. Similarly, eliminating regulatory burdens by avoiding products, chemicals, or processes that require special care and documentation also lowers overhead.
Companies that successfully manage environmental risks lower operating costs, reduce the cost of capital, drive up stock market valuations, and [url=http://www.maximoupgrade.com/hot.php]hollister[/url] keep insurance premiums reasonable. They also avoid the indirect costs of business interruption and lost good will. On the revenue side, the benefits of differentiation through good environmental stewardship are sometimes concrete - like commanding a price premium or just selling more - but are largely intangible: strengthened relationships with customers, employees, and other stakeholders. Some say that these intangibles are too vague t be measured, but they are wrong. Smart companies use these strategies to convert environmental and sustainability thinking into profit. Over and over again, Wave Riders find that asking people to look at their work through an environmental lens leads to innovation around waste reduction and resource productivity, [url=http://www.mxitcms.com/tiffany/]tiffany outlet[/url] which translates directly into Eco - advantage (Esty and Simmons).
Works Cited Esty, Daniel and P. J. Simmons. The Green to Gold Business Playbook:How to Implement [url=http://www.ilyav.com/uggpascher.php]ugg pas cher[/url] Sustainability Practices for Bottom-Line Results in Every Business Function. New York: John Wiley & Sons, 2011.
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