High oil prices push people to buy green goods
Sales of bikes and energy-saving products are on the rise.
March 20, 2008
As the price of crude oil hovers around $100 per barrel, people are looking for eco-friendly ways of saving money and companies are tapping into the trend.
Recently, CJ Mall, a Korean Internet shopping site, said it sold more than 1,000 bicycles between the beginning of last month and March 14, four times more than the same period a year ago and 10 times the number from 2006.
The Velo folding mini bicycle by Strida was the hottest seller, with 120 units rolling out the door, despite a steep price tag of 480,000 won ($480).
“We saw many people, especially in their 20s and 30s, choose bicycles this year as an alternative to cars,” said a CJ Mall official.
Sales of other energy-saving goods are also on the rise. Energy-saving power strips and water-saving shower-heads have been popular items, said Kim Chan-young, a cashier at the Gayang branch of Grand Mart in southern Seoul.
The nation’s gadget makers, such as Samsung Electronics and LG Electronics, aren’t missing out. The market has seen a recent rush of energy-efficient electronics.
LG recently launched new lines of refrigerators which can lower energy consumption by up to 26 percent. Samsung’s newly released Pavv Cannes 450 TV consumes 50 percent less energy than other similar models.
An official from LG said people can save 6,000 won per month when they consume 10 kilowatts less by using energy-efficient goods.
The era of high oil prices has also prompted local firms to jump into the alternative energy business.
According to filings posted on the Financial Supervisory Service Web site, nearly 160 companies have launched renewable energy businesses since last September, LG Electronics, Daelim Industrial and Kumho Industrial among them.
The Ministry of Knowledge Economy also said yesterday that it is moving along with its plan to build 100,000 solar energy-powered houses in Korea. The ministry started building the houses in 2004, and it plans to invest 49 billion won in the project this year.
Under the plan, the government foots 60 percent of the bill while future residents pay the remaining 40 percent. The ministry expects around 2,700 solar houses to be constructed this year.
“An increasing number of people are applying for subsidies to build solar houses,” said a ministry official.
By Sung So-young Staff Reporter
hardship of economy sometimes are good for supplier and customer.
because of rising oil price, new industries are grown and developed such as
bicycle, green goods and alternative energy industry.
and rising oil price makes technologies are developed especially in home-electronic for the saving energy.
we're able to argue that these are good dimensions of high oil prices.
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