Market barriers, energy efficiency and conservation theology

Conference · Mon Apr 19 00:00:00 EDT 1993

OSTI ID:10162283

Sutherland, R J

The main issue of this conference is the importance of market barriers to realizing energy efficiency potential. The answer depends on whether we are considering what engineers term market barriers or what economists term market failures, and whether we are concerned with energy efficiency, or, with the efficient use of energy resources. My answer to the basic question is -- if the policy or program objective is to use energy resources efficiently, then market barriers are irrelevant and so is energy efficiency. If the policy objective is to reduce energy use for the sake of reducing energy use, then market barriers may be important. Energy efficiency is different from and not related to the efficient use of energy resources. From an economics perspective, the appropriate policy goal is the economically efficient use of all resources including energy. Consequently energy efficiency is not a relevant policy variable. Market barriers may discourage investments in energy efficiency; however, market barriers are incorrect indicators of the failure of private markets to make economically efficient decisions. Conservation advocates and economists consider market barriers and energy efficiency very differently. Conservationists believe that not using energy resources has some social or theological value over and above purely economic reasons. In contrast, economists would argue that all resources, including energy, should be used efficiently; hence the explicit economic goal is economic efficiency. The answer the main topic of this conference depends on whether energy efficiency potential is assumed to have social value for its own sake, or, whether we require that dollar benefits exceed dollar costs. Again, one goal is to conserve energy for some social reason. The altemative goal is that energy resources should be used and conserved in their most economically efficient manner.

• Research Organization: Argonne National Lab., Washington, DC (United States)
• Sponsoring Organization: USDOE, Washington, DC (United States)
• DOE Contract Number: W-31109-ENG-38
• OSTI ID: 10162283
• Report Number(s): ANL/EAIS/CP-79654; CONF-9305204-1; ON: DE93015142
• Resource Relation: Conference: Workshop on the potential for energy efficiency in Canada,Ottawa (Canada),4-5 May 1993; Other Information: PBD: 19 Apr 1993
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
99 GENERAL AND MISCELLANEOUS//MATHEMATICS, COMPUTING, AND INFORMATION SCIENCE
ENERGY POLICY
ENVIRONMENTAL IMPACTS
ENVIRONMENTAL POLICY
ECONOMICS
ENERGY EFFICIENCY
ENERGY CONSERVATION
RESOURCE CONSERVATION
CONSTRAINTS
ENERGY MANAGEMENT
291000
290300
990100
CONSERVATION
ENVIRONMENT, HEALTH, AND SAFETY
MANAGEMENT