Are you throwing money away by following the "2-year payback" rule? Close the efficiency gap: Use profits to drive the capture of value

Cogeneration and Distributed Generation Journal

Volumn 15, Issue 3, 2000, Pages 42-52

  Wells, John Bruce ^a,c   Hoffman, John S ^b,c  

^a Management   (United States)

^b WorkSmart Energy Enterprises Inc

^c NONE   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 52849125193     PISSN: 15453669     EISSN: 15457575     Source Type: Journal    
DOI: 10.1080/10668680009508894     Document Type: Review

References (8)

1. Stephen J. DeCanio, "The Energy Paradox: Bureaucratic and Organizational Barriers to Profitable Energy-Savings Investments," Working Paper in Economics # 19-95, University of California, Santa Barbara, 1995.
2. "Fluorescent Lamp Ballasts, Summary 1998, MQ36C(98)-5," Current Industrial Reports, Bureau of the Census, Economics and Statistics Administration, U.S. Department of Commerce, June 25, 1999.
3. R.K. Brown, A.L. Arnold, et al., Managing Corporate Real Estate, New York: John Wiley & Sons, Inc., 1993, p. 44.
4. Scheihing, P.E., M. Rosenberg, et al., February 1998. "United States Industrial Motor-Driven Systems Market Assessment Charting a Roadmap to Energy Savings for Industry," International Workshop on Industrial Energy Efficiency Policies: Understanding Success and Failure; June 10-12, 1998; Utrecht, The Netherlands. Emphasis added.
5. Ernst von Weizsäcker, Lovins, A. and Lovins, H. 1997. Factor Four: Doubling Wealth, Halving Resource Use. Earthscan Publications, Ltd.
6. NPV is calculated for a hypothetical 1 million square feet facility that can achieve a net savings of 20 cents per square foot per year, which is the average for Green Lights participants. Savings are measured over a 10-year period and discounted at 9 percent.
7. Confidential conversations among a co-author, energy manager and real estate executives of a Fortune 500 company, April 1998.
8. A FASB operating lease must meet all of the following criteria; 1) the lease cannot transfer ownership to the lessee at the end of the term; 2) the lease cannot contain a "bargain purchase option"; 3) the lease term must be equal to less than 75% of the estimated economic life of the property, and 4) the present value of the minimum lease payments must equal less than 90% of the fair market value of the property.