Is there such thing as a ‘green’ bubble?

Today I was reading on Inman News, and one of their quick polls attracted my attention. It was entitled “What will be the next bubble to burst?” Although only about 18 had voted when I viewed the poll, which is not indicative of any widespread opinion, the results showed that the real estate bubble having burst already, the “green” bubble will be the next in line.

I’ve really liked the idea of “green” products and “green” housing, but this poll made me step back and think about it a little bit.  Is it more than just a passing phase to all of us?  Will I be as concerned about it in 20 or 30 years?  My conclusion is that environmental friendliness will never go out of style, although we may cease to label everything “green” that helps the environment.  I think the energy efficient lifestyle is a trend or a novelty to some people, but a permanent way of life for others.  There really is no ‘bubble’ to those who truly care about the earth and will continue to live their lives according to those principles.

As energy efficient products are used on a wider scale, their general usage will establish them as the norm and prices will decrease.  It would make no sense to me for any company who has established an energy efficient line of products to stop making them.  Of course, the consumer will dictate if it makes sense for the manufacturers to make them, but as prices drop, why would consumers not buy a product that saves them money on their energy bills?  They’re just smarter products.  Why revert to energy hogs? 

Some products may never drop to the price levels of thier non-green competitors.  Cleaning products, bags, clothes, etc. may always cost significantly more to produce, so their price will remain higher.  But I still think some people will buy those products.  They are very popular among certain demographics. 

You can’t compare other bubbles, such as the real estate bubble, to a so-called ‘green’ bubble.  Housing and hybrids are two entirely different things.  My prediction is that we’ll see more labeling of products as ‘green’ and energy efficient as time goes on, until they become commonplace.  There will be holdouts, just as there are Ford F-350 owners who will never buy a Prius, but the Prius and its green friends will continue to thrive.

Tags: green bubble, green housing, energy efficient, real estate bubble, environment