ERIC Number: ED200153
Record Type: RIE
Publication Date: 1981-Mar
Financial Energy Conservation Projects at Independent Colleges and Universities.
Morrell, L. R.
Business Officer, v14 n9 Mar 1981
Factors affecting financial decisions for energy conservation projects at independent colleges and universities and methods that may be used when making a financial investment decision are examined, along with sources of funding for the projects. Projects that result in the conservation of energy resources might, in a time of extreme shortages, enable an institution to keep operating. Another factor in considering implementation of energy conservation projects concerns the recognition that there is a limited supply of resources, and investments that promote the most efficient use of those resources result in their retention. Two methods may be used when making a financial investment decision: constant dollar pricing or anticipated pricing. An illustration of an investment proposal is presented that shows the many variables that influence the cost of investment in energy-saving programs. The ideal situation for encouraging investment is a rising fuel price and a decreasing rate of return (interest). The investment decision becomes more complex when competing alternatives exist. Different energy-saving possibilities provide varying fuel savings, requiring larger or smaller investment amounts. Varying degrees of flexibility are associated with different projects. Once computations have been made to determine the feasibility of various alternatives, sources of funding, internal or external, must be found. Internally, savings resulting from energy conservation programs may be channeled back into new items of equipment or energy-saving systems. A bank loan, federal programs, and fund-raising are other alternatives. (SW)
Descriptors: Building Operation, Climate Control, College Buildings, College Planning, Cost Effectiveness, Decision Making, Energy Conservation, Facility Improvement, Facility Planning, Financial Support, Fuel Consumption, Higher Education, Investment, Private Colleges
National Association of College and University Business Officers. 1110 Vermont Avenue NW Suite 800, Washington, DC 20005. Tel: 800-462-4916; Tel: 202-861-2500; Fax: 202-861-2583; Web site: http://www.nacubo.org
Publication Type: Collected Works - Serials; Reports - Descriptive
Education Level: N/A
Authoring Institution: National Association of College and University Business Officers, Washington, DC.