Capital pinch seen cutting firms' conservation budgets

Journal Article · Mon Aug 16 04:00:00 EDT 1982 · Energy User News; (United States)

OSTI ID:6871498

Deans, B

Energy managers are promoting low-risk, cost-effective conservation projects to counteract the limited capital available for overall business investments, although conservation budgets at most firms will decline between 15 and 50%. Many firms are now requiring 35% and higher return on investment and paybacks of one year or less. Companies that have capital give conservation projects high priority because of the high cost of energy. Profits and long-term credit are the traditional sources of corporate capital, but the recession and high interest rates have tightened discretionary spending. Several firms are experimenting with shared-savings, reduced spending, and other alternatives to fund conservation. (DCK)

• OSTI ID: 6871498
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 7:33; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
291000 -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320300* -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
CAPITAL
ECONOMICS
ENERGY CONSERVATION
FINANCING
INVESTMENT