Series 7, Issue 12
The week of September 18, 2023
Practicing Efficiency
The week of September 18, 2023
Practicing Efficiency
In his 1865 book, The Coal Question, the economist William Stanley Jevons observed that England's consumption of coal soared after the introduction of the coal-fired steam engine. Jevons argued that, contrary to intuition, technological improvements that increased efficiency often led an increase rather than a decrease in consumption.
We observe something like Jevon's paradox all the time. A driver of a gas-guzzling SUV will drive a few extra miles to save a penny per gallon of gas, or an EV driver who rarely leaves their neighborhood is so overcome by worry about range anxiety that they pay more for a larger battery. In fact, batteries are an interesting example of Jevon's Paradox. Batteries have gotten so cheap that they are inserted into almost every conceivable consumer product, from toothbrushes to bathroom scales to toilet seats, causing in effect a global shortage of materials to make more.
But Jevon's paradox doesn't capture the undeniable benefits of energy efficiency. Often called “the fifth fuel” (after coal, oil & gas, nuclear power, and renewables), energy efficiency is a cost-free tool for accelerating an energy transition. In a Times editorial titled “Everybody Wins,” Nobel Prize winner and former US Secretary of Energy Steven Chu argued that energy efficiency offers a "trifecta of benefits”: a reduction of total consumption; lower emissions; and greater savings for individual consumers. The consulting firm McKinsey & Co. has determined that robust energy efficiency policies in the US could eliminate “up to 1 gigaton of greenhouse gases annually.” It is the most immediate way to address almost any energy crisis, from disruptions to the grid caused by winter storm Uri to Putin's invasion of Ukraine. Energy efficiency expert Amory Lovins refers to the replacement of incandescent light bulbs with compact fluorescents as “not a free lunch, but a lunch you’re paid to eat,” since a fluorescent bulb will usually save enough electricity to more than offset its higher purchase price.
This "think-and-do" issue of Energy Today targets practical ideas, useful programs, and helpful resources about energy efficiency. Some articles advocate for faster technological adoption, some promote justice and fairness, others offer advice and support. Collectively, the sum of these articles makes it clear that energy efficiency is more effective than Jevon originally thought and less straightforward than it seems.
Editors' note: In contrast, some economists have conducted comprehensive studies of the "rebound effect" from improved energy efficiency. Meanwhile, the federal government is taking energy efficiency seriously again. For instance, among the many energy efficiency programs hosted by the federal government, the DoE is accepting applications for the Home Efficiency Rebate and the Home Electrification and Appliance Rebates program created by the Inflation Reduction Act (IRA). These programs offer $8.5B to states and territories to lower energy costs and increase efficiency by making home energy upgrades more affordable.
Table of Contents
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Energy efficiency has been called “the fifth fuel” (after coal, petroleum, nuclear power, and renewables); it is seen as a cost-free tool for accelerating a transition toward a low-emissions economy.
But according to William Jevons, energy efficiency isn't always the perfect solution. Consider, says Jevons, the technological advances that made it possible for a blast furnace to produce iron with less coal. Industry made greater profits, which led to new investment in iron production, which then caused the price of iron to decrease ... which then stimulated additional demand. In conclusion, Jevons noted the paradox of an unintended consequence: “the greater number of furnaces will more than make up for the diminished consumption of each.” |
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See also: Energy Efficiency: Building a Clean, Secure and Vibrant Economy, by James Sweeney
How Big Is the Energy Efficiency Resource?
by Amory Lovins
by Amory Lovins
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The energy efficiency expert, Amory Lovins, unpacks the lively debate about the costs and benefits of energy efficiency miss a crucial point: the efficiency resource itself, and its economically capturable 'reserves,' are severalfold larger and cheaper than the energy, business, economics, policy, and climate communities commonly acknowledge.
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According to AES trend-spotting data, in 2013 the hottest topic in energy was efficiency and the next generation of technologies that would save consumers money and slash carbon emissions.
Ten years later, this article looks at 8 of the hottest technologies from 2013 and evaluates if they have met the hype. |
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See also: Fighting Climate Change with Heat Pumps, UC Davis
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To date, research and policy efforts have largely focused on expanding the supply of clean energy and the electrification of end uses, rather than a broader suite of solutions that includes improving the efficiency and flexibility of energy demand.
To fill this knowledge gap, Lawrence Berkeley National Laboratory and the Brattle Group released a groundbreaking, multi-year collaborative study, Demand-side solutions in the US building sector..., which provides a comprehensive analysis of building decarbonization solutions and how they complement the speed and scale of power sector decarbonization. |
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See also: Industrial Assessment Centers, a US DOE initiative
Human Behavior
by Emily Matchar
by Emily Matchar
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The new high-efficiency office building has all the latest energy-saving features: smart thermostats, motion sensor-activated lights, floors designed to absorb heat during the day and release it at night. But the building's actual energy savings are far less than anticipated. Why?
Well, maybe the building’s occupants are putting popsicles on the thermostats so they can force the heat to go higher. Or maybe they’re using a toy to continuously trigger the motion sensor lights, to keep them from turning off when they leave the room. This article looks at research on unanticipated office behaviors. |
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See also: Applying customer commitments to natural gas utility energy conservation, University of Utah
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This list offers highly recommended energy efficiency resources from SMEs like: Neal Elliott (Director Emeritus at ACEEE), Harvey Michaels (MIT Sloan Lecturer who teaches classes about energy efficiency and management), Diana Gragg (Managing Director of Explore Energy and Core Lecturer at Stanford University), Ryan Wiser (Senior Scientist, Lawrence Berkeley National Laboratory), and Craig Sieben (Lecturer for ISEN, Northwestern University).
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See also: 2022 State Energy Efficiency Scorecard, ACEEE
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