Green technology is all about developing ‘clean’ and state-of-the-art electronic equipment, machines, vehicles, or tools using environmentally acceptable practices. It wishes to address climate change, pollution, and other hazards associated with the use of conventional technologies. Sustainable development is at the core of the concept.
Electric cars that can run completely gasoline-free and therefore do not emit noxious gases is one of the classic embodiment of green tech. Equipment used to harness clean energy from renewable sources (sun, wind, etc.) is another. However, some people view going green as something that will burn a hole in their pockets, given their steep prices and the high cost of associated R&D.
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Take solar panels for example. They are used to power houses using the light from the sun, allowing these buildings to run on electricity despite being off the grid. However, the combined costs of the panels and a battery to store the energy would likely reach an amount that is less than what is in the budget. Businesses will most probably be the sector that would shy away from this type of technology because it would hurt their profit margin. However, looking at the bigger picture and using the option as a long term investment, green tech can actually open up the business to more growth opportunities.
The upfront costs might be quite large, but after considering the amount of money saved on energy costs in a couple of years, the revenue of businesses can reach different heights. Long-term returns on solar panel investment is nearly guaranteed. In addition, because green tech primarily aims to protect the environment, it can help companies avoid unnecessary expenses related to such events as severe weather conditions, wildlife extinction, drought, and rising sea levels, among others.
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A lot of consumers these days have become more interested in anything that would preserve Mother Nature. This is because they are now very aware of the repercussions of a rapidly deteriorating planet. That’s why going green can also serve as a brand management strategy to broaden market reach. The company who is making an effort to make the world a better place would be seen in a positive light. And this can eventually translate to a more esteemed reputation, and consequently, higher revenues.
Green technology is yet to reach widespread mainstream use but the volume of developments happening every year is extremely impressive. From e-cars and energy-saving appliances to aquaponics and cloud computing, environmental tech is rapidly evolving. In the financial world, green tech startups have even become viable investment options to diversify investors’ portfolio.