(New York Times)
Essentially, an electronic cigarette functions the same as a regular paper cigarette but without the burning.
As the graphic illustrates: the electronic cigarette runs on a rechargeable battery. The battery powers a sensor which detects when air is sucked in. As the air is sucked in, liquid in the replaceable chamber is hearted and nicotine vapor is released along with a vapor mist that simulates the actual process of inhaling.
There are no harmful chemicals because no organic substances are being burned. You can smoke it indoors at no risk to you or the people around you.
Electronic cigarettes are reusable.
They do not rely on pesticides for production. They do not rely on trees for paper.
Next step: Purchase one and try it out.