An energy efficient cloud-based environment includes multiple users requesting delivery of cloud-based services from a cloud service provider. Each user provides inputs for the delivery of one or more specific cloud based services. The inputs include the type of service, time frame for using the service, and either an energy efficiency level or a performance level pertaining to the service's delivery. The service provider allocates different resources to the users for delivering the requested services, and calculates an actual price and an operating energy cost for delivering the requested services to each of the users. The profit of the service provider due to users is calculated. An overall profit of the service provider associated with delivering the cloud-based services is calculated, and a fraction of the overall profit is distributed as an incentive among the users. The incentive of each user is proportional to the profit contribution of that user.