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Wal-Mart Sees The Light In Cutting Energy Use

Claiming that the environment "is begging for the Wal-Mart business model," CEO H. Lee Scott Jr., has committed the retailer to selling 100 million energy-saving compact fluorescent light bulbs a year by 2008.

The biggest obstacle to overcome is America's love affair with cheap, familiar-looking incandescent bulbs. Wal-Mart will have to persuade its traditional consumers that it is worth paying a bit more at the checkout counter to save a significant amount down the line--a seemingly simple task that few companies ever accomplish.

A compact fluorescent uses 75% less electricity than an incandescent bulb, lasts 10 times longer, produces 450 pounds fewer greenhouse gases from power plants and saves consumers $30 over the life of each bulb. But it is eight times as expensive as a traditional bulb, gives off a harsher light and has a peculiar appearance. As a result, Wal-Mart is meeting plenty of resistance--from light-bulb makers, competitors and consumers. Only 6% of households use the bulbs today.

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