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The future of energy consumption, prices, and intensity remains uncertain, but this analysis suggests that greater energy efficiency has had, and may continue to have, a positive effect on the Massachusetts economy. Together, targeted energy-efficiency programs in commercial, industrial, and residential sectors have the potential to continue to provide benefits to Massachusetts, and they remain a cost-effective option for meeting the state's increasing energy demand. The authors show that savings from commercial and industrial energy-efficiency programs have provided a positive return on utility investment, and they demonstrate benefits of energy efficiency for Massachusetts households, particularly for low-income households.
RAND, a nonprofit and nonpartisan research organization, has prepared this report with funding from the Energy Foundation, a partnership of major foundations interested in sustainable energy. In this study, we estimate energy efficiency from measures of energy intensity (the energy consumed per unit of output) that have been controlled for sectoral composition, energy prices, and other factors. In this report we address the public benefits of our estimate of energy efficiency to Massachusetts and find that improvements in energy efficiency in the commercial, industrial, and residential sectors are associated with: (1) A benefit to the state economy since 1977 that ranges from $1,664 per capita to $2,562 per capita in 1998 dollars. (2) Approximately 11 percent lower air emissions from Massachusetts's share of stationary sources in the Northeast Power Coordinating Council. (3) A reduced energy burden on low-income households. This study measures the benefit to the state economy of improvements in energy efficiency in the industrial and commercial sectors from 1977 to 1997. It also predicts the potential future impacts of continued improvements in energy efficiency. This report addresses four key issues and assumptions: (1) This analysis shows that declines in energy intensity are associated with increases in gross state product (GSP), holding sectoral composition, energy prices, and other factors constant. (2) When these other factors are held constant, changes in energy intensity can be an approximation of changes in energy efficiency. Thus, the conclusion is that improvements in energy efficiency are associated with improvements in gross state product.
Energy efficiency is more of a journey than a battle. It starts with small steps, taken at the local and state levels. It is a matter of identifying and then practicing good habits in our daily lives, at home and at work. Every idea and process described in this book, if performed reasonably well, will put money in your pocket. You will not only save money; you will probably make money—and you will take important steps toward saving the planet. Power Economics is a book for thoughtful people who want to cut their energy costs and diminish the harmful effects of greenhouse gas emissions. Climate change and global warming are not speculative fantasies. They are real. They threaten communities, towns, cities, regions, nations, and continents. Even if you don't care about polar bears and penguins, the effects of melting icecaps and shifting ocean currents will transform your life and the lives of the people around you. Power Economics offers practical steps and achievable strategies for reducing the destructive impact of climate change and global warming. Yes, we need energy to live and to sustain our economies. But we don’t need to burn fossil fuels and release CO2 gas at levels that will result in a global catastrophe. There are reasonable alternatives to our current practices. None of the ideas that described in this book are entirely new or totally unfamiliar. They aren't extreme or bizarre. They won't require harsh or draconian measures to work. All of them follow basic rules of common sense and can be achieved at reasonable cost. "I have done my best to convey the complexity and urgency of the matter. I hope that you find this book informative and useful. Working together, we can shed many of our wasteful energy habits and begin the task of building a world that is safe, sustainable and healthy," writes author and energy expert Elena Cahill.
"This book contains the proceedings of an NBER conference held in Washington, DC, on May 13-14, 2010"--Page xi.
A program for building a global clean energy economy while expanding job opportunities and economic well-being. In order to control climate change, the International Panel on Climate Change (IPCC) estimates that greenhouse gas emissions will need to fall by about forty percent by 2030. Achieving the target goals will be highly challenging. Yet in Greening the Global Economy, economist Robert Pollin shows that they are attainable through steady, large-scale investments—totaling about 1.5 percent of global GDP on an annual basis—in both energy efficiency and clean renewable energy sources. Not only that: Pollin argues that with the right investments, these efforts will expand employment and drive economic growth. Drawing on years of research, Pollin explores all aspects of the problem: how much energy will be needed in a range of industrialized and developing economies; what efficiency targets should be; and what kinds of industrial policy will maximize investment and support private and public partnerships in green growth so that a clean energy transformation can unfold without broad subsidies. All too frequently, inaction on climate change is blamed on its potential harm to the economy. Pollin shows greening the economy is not only possible but necessary: global economic growth depends on it.
This report assesses the benefits of energy efficiency to the Minnesota state economy, its environment, and its citizens. Energy efficiency and its effects are difficult to measure directly. This analysis estimates energy efficiency through its effects on energy consumption and economic productivity (i.e., a form of energy intensity-the energy consumed per unit of output) while controlling for price, sectoral composition, and other factors. Furthermore, this study is limited to improvements in the use of energy in the industrial, commercial, and residential sectors and does not include, for example, the transportation sector. Conceivably, improvements in energy usage in the industrial, commercial, and residential sectors could yield a number of benefits, including economic gains, improved productivity, improved quality of service, higher reliability, reduced pollution, and lower costs to consumers. This report addresses three of these benefits: Effects on the gross state product of energy efficiency improvements in the commercial and industrial sectors; Effects on air emissions of the improved utilization of energy in the commercial and industrial sectors; Effects on households, particularly low-income households, of improvements in residential energy efficiency.
America's economy and lifestyles have been shaped by the low prices and availability of energy. In the last decade, however, the prices of oil, natural gas, and coal have increased dramatically, leaving consumers and the industrial and service sectors looking for ways to reduce energy use. To achieve greater energy efficiency, we need technology, more informed consumers and producers, and investments in more energy-efficient industrial processes, businesses, residences, and transportation. As part of the America's Energy Future project, Real Prospects for Energy Efficiency in the United States examines the potential for reducing energy demand through improving efficiency by using existing technologies, technologies developed but not yet utilized widely, and prospective technologies. The book evaluates technologies based on their estimated times to initial commercial deployment, and provides an analysis of costs, barriers, and research needs. This quantitative characterization of technologies will guide policy makers toward planning the future of energy use in America. This book will also have much to offer to industry leaders, investors, environmentalists, and others looking for a practical diagnosis of energy efficiency possibilities.