Opinion: Greed Is Green

(Sept. 17) -- In April 2001 Dick Cheney famously trashed the idea of doing more with less. "Conservation may be a sign of personal virtue," he said, "but it is not a sufficient basis for a sound, comprehensive energy policy."

Nine year later, President Barack Obama seems to agree. The White House declined to reinstall Jimmy Carter's outdated rooftop solar panels. Adding the panels wouldn't have done anything to reduce our dependence on foreign oil, avoid another BP spill or reduce the risk of drought, fires, floods and famines wrought by climate change, but it would have been a good symbolic gesture.

After all, how can Obama get the "environmental change" that he says "will come from Americans across the country who take steps in their own homes" if he won't take a simple step in his own house?

The fact is that conservation remains by far the cheapest, fastest, cleanest route back to security. It restores a resilient society, a stable climate, an autonomous foreign policy and a robust economy. It remains bipartisan in spirit, avoiding regulations, carbon taxes or cap-and-trade treaties.

But it can only work if it leverages our inner greed.

In any democracy, conservation policy must reach beyond Prius-carpooling-farmers'-market-hemp-bag-toting-vegan-cardigan-sweater-wearing pillars of society. It needs 51 percent. That includes flawed people who blast air conditioning all summer and take long hot showers all winter because I -- er, they -- can't help it.

Call us the not-so-moral majority. We consume more water and energy than we need to. We lack solar panels. We feel vaguely guilty. Still, we might take comfort in a dirty little secret long known by insiders: conservation is unsustainable.

Hang on. As we save resources, we lower bills, reduce effect and avoid sanctions, right? Not necessarily -- thanks to the absolute natural monopoly that is our local utility.

To be sure, utilities' conservation directors showcase conservation programs touting conservation rebates. And they pray like hell that no one will conserve.

Why? Like any enterprise, a utility's operating income depends on our consumption. The more combined water and energy -- or "watergy" -- we waste, the more money utilities rake in.

So if Obama and I cut our consumption by half, monopoly utilities must unilaterally double rates per gallon or kilowatt-hour on us to equal operating costs. After a brief dip, monthly utility bills rise back, higher than ever.

Happily, information technology can lead us out of this destructive and dangerous spiral of perverse incentives. The Internet can unlock authentic, sustainable, comprehensive conservation policies that eluded Cheney and Obama alike. How? By borrowing from an idea used back in the 1990s to cut acid rain causing sulfur dioxide emissions that were killing lakes and forests: tradable credits.

Here's how it could work to encourage real, meaningful conservation:

• First, encourage monopoly utilities to convert messy physical water or energy into cleanly defined virtual credits.

• Next allocate equal quantities of these online metered assets -- say, 200 gallons or 20 kilowatt-hours per day -- to every residential, commercial and industrial account.

• Then let us trade whatever we don't consume to those who want more.

These online platforms could unlock virtual markets within natural monopolies, working to reward voluntary frugality, efficiency and innovation.

The trick is not trying to improve on human nature but to leverage our innate sin. If you consumed less, you could sell unused shares to me, to businesses or to the utility for a cash profit.

Greed makes green. Your pride in higher wealth and status would compel me to use even less just to keep up -- a benevolent consequence of my envy.

And so on. This online platform would encourage a competitive culture of conspicuous conservation by a slothful, lusty and gluttonous majority who feel wrath at any lingering dependence on our monopoly utility.

So never mind solar panel symbolism. To unlock a truly virtuous conservation policy, President Obama need only tap our inner vice.

James G. Workman is an award-winning journalist and former writer for statesmen ranging from Interior Secretary Bruce Babbitt to Nelson Mandela. He is the co-founder of SmartMarkets LLC and author of "Heart of Dryness: How the Last Bushmen Can Help Us Endure the Coming Age of Permanent Drought." Read his blog on Red Room.