Regardless of whether you buy into the ongoing climate change phenomenon or simply see it as the new gimmick of this generation, there is one fact that is harder to deny: being environmentally friendly can help you save money.

How’s that you ask?

Well, by reducing waste you’re essentially reducing the costs incurred in the processing of whatever it is that you’re producing.

For example, if a lumber company were able to use every bit of input (trees) in the production process of a single unit of furniture, it would use fewer trees in order to manufacture its product or it could make more units with the original amount of trees. Therefore, by finding ways to reduce waste in the production process by making more efficient use of their trees, they are able to gain in the conversion process by deriving more benefit out of same amount of cost (hence the use of plywood). The waste then can be seen as the loss in efficiency generated in the conversion process between what you put in and what you get out (input and output).

Regarding your home environment, you’re essentially “producing” your lifestyle with the money you earn (the input). Imagine that one factor of the lifestyle you want to produce is to have a certain level of comfort when you are at home. Let’s assume that your comfort level at home is determined by a single factor: air-conditioning. In this simplistic format, it is easy to see what will happen to the cost-benefit conversion process if you compare living in a home that is well-insulated to one that is not. Intuitively, you will be paying more money to cool your un-insulated home than you would a home that is well insulated. This wasted money (or the loss in efficiency in keeping your home cool) translates into a higher energy bill. By simply insulating your home you not only spend less money on energy but you are also helping the environment by reducing the demand on energy production.

Which ever way you look at it, it stands to reason that you are finding ways to better allocate your money. Now whether your goal was to help the environment in the process of consuming less is entirely your affair, but saving money will always benefit you in the short and long term.