Restructuring Today, November 14, 2008

 

 

Consumers agree climate change is a problem but they don't agree on how to address it, EcoAlign's fifth EcoPinion Survey found.
Those surveyed expressed a wide variety of beliefs on cost allocation and the role of government -- and the survey, released yesterday, was rife with contradictory findings and potential conflicts.
"To a much greater degree than other EcoPinion surveys, questions on how to manage climate change result in statistically significant differences between men and women, among income classes and especially between Democrats and Republicans," said EcoAlign CEO Jamie Wimberly.
"If not handled in a bipartisan, cost-sensitive manner, the Obama Administration could face a consumer revolt."
One half of Americans surveyed indicated that cutting climate change was extremely important or very important, with another 22% saying it was important.
Some 41% of those surveyed are worried about climate change.
Almost half, 46% of Americans believe individuals have the primary responsibility to fight climate change but 53% believe that they can't personally impact it.
Nearly 1/3 of Americans believe that utility bills don't have to rise to manage climate change and another 44% believe the boost should be less than 10%.
The EIA forecast for the failed Lieberman-Warner bill -- that was less stringent that President Elect Barack Obama's plan -- saw power prices growing by up to 27% in 2020 and possibly 64% in 2030 (RT, May-01).
One third of all Americans and 45% of Republicans would be very dissatisfied if they had to pay 10% more for power to address climate change.
Nearly 1/3 surveyed believes that added tax revenue should be spent on R&D for alternative sources of energy.
With those results, EcoAlign believes the industry needs to target some specific consumers on how the problem needs to be addressed.
If it doesn't, a response to climate change could spawn a significant consumer backlash if energy prices rise by too much.