This article examines historical and current approaches to energy efficiency. It explores the policies and measures implemented to promote energy conservation and analyzes how these efforts are changing and evolving in response to contemporary challenges and opportunities.
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What is the Meaning of Energy Efficiency?
The term ‘energy efficiency’ refers to measures and policies designed to lower energy usage without significantly sacrificing results. It is the use of less energy to perform the same task or develop the same results within many different industries.
Energy efficiency can seem like a relatively straightforward concept. However, applying this concept in the real world is complicated as there is no objective way to measure efficiency. In a study published in Energy Policy, researchers stated:
No single measure can be said to truly represent energy efficiency; it is open to debate and contention, and can be moulded to suit different interests and needs. In fact, depending on the policy objective, policymakers are often interested in different measures of energy efficiency.
Goh, T. and Ang, B.W.
Take, for example, the production and use of an electric vehicle (EV); this may seem more energy efficient than a gasoline-powered vehicle, however, the extraction of materials used to make an electric car battery and the additional weight of that battery could mean that an EV is holistically less efficient than a gas-powered vehicle.
The complexity of energy efficiency makes it a significant challenge for people working in academic and policy-making circles. As a topic that falls along the science-policy axis, energy efficiency can be seen as a non-controversial way to save money at individual and societal levels. However, approaches to increasing efficiency are often seen as controversial because they often disrupt the status quo.
What Is Energy Efficiency?
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The History of Energy Efficiency
The history of energy efficiency began in the mid-19th century as an academic and policy concern.
During the Industrial Revolution, the mass burning of coal, peat, and other fossil fuels became a topic of interest. A pivotal moment during this era was the release of the book The Coal Question by W. Stanley Jevons in 1865. In his book, Jevons noted that the Industrial Revolution in Great Britain was highly dependent on coal reserves that were becoming increasingly scarce.
During the post-war era, energy was much more abundant and affordable than during the Industrial Revolution. Efficiency was seen as less of a concern and a small part of the overall conversation around energy usage.
The thinking changed significantly in the late 1970s when the oil crisis hit. Suddenly, energy efficiency became a concern at societal and individual levels.
In the 1980s, energy efficiency became a major academic and policy concern, with energy efficiency policies becoming more prevalent.
Recently, energy efficiency has been increasingly associated with behavioral economics. Generally speaking, this field deals with the cognitive disconnect between making an economic decision and enjoying the consequences of that choice.
Supporters of greater energy efficiency in academics and policymaking circles have responded by advocating for ways to encourage people and companies to make responsible energy choices.
Energy Efficiency Measures in Today’s Society
Generally speaking, today’s energy-efficient measures can be found in three key areas: residential, commercial, and transportation.
Residential
One of the most popular ways people experience energy efficiency is in their homes. Everything from appliances to insulation to heating and cooling involves energy efficiency.
Many countries have adopted residential energy efficiency standards. In the United States, policies that cover appliances and HVAC systems have been highly effective at conserving energy, with the US Department of Energy saying they achieve “high bang-for-the-buck” savings.
According to the department, household energy efficient standards have saved tens of quadrillions of British thermal units of energy (quads) over the past decade, and they are projected to save nearly 142 quads by the end of this decade. That is more energy than the entire United States consumes in a calendar year. For utility customers, that translates to around $2 trillion in savings.
Commercial and Industrial
The commercial and industrial sectors consume vast quantities of energy, particularly in the developed world. Commercial use accounts for about 35% of all energy consumption in the United States.
Clean energy policies aimed at increasing energy efficiency typically use incentives to encourage companies to make responsible choices. The Inflation Reduction Act (IRA) 2022 in the United States included 26 energy tax incentives for businesses and individuals.
Transportation
The transportation sector is arguably the most high-profile industry associated with burning fossil fuels, accounting for approximately 28% of all energy used in the United States.
Because of its visibility, the transportation sector is a popular target for energy efficiency measures. Over the years, many government regulations have encouraged or mandated using energy-efficient vehicles. More recently, the push toward widespread electric vehicle adoption is one of the critical areas where the transportation sector is striving to become more energy efficient.
Recent and Established Developments in Energy Efficiency
Every day brings promising developments in energy efficiency. While some developments are purely theoretical or academic, some involve real-world applications.
One of the most high-profile real-world applications has been the successful marketing of residential heat pumps. These heating and cooling systems can reach efficiency levels of 400%, meaning they can generate four times as much heat as they use in electricity. For comparison, the most efficient space heaters attain approximately 95% efficiency.
One of the most significant recent commercial developments has been adopting polyurethane insulation systems. The thin profile of polyurethane insulation allows it to be applied across a wide range of uses. For example, it is not restricted to use in studs or rafters. These systems have been shown to reduce heating and cooling costs by around 30%.
Conclusion
Energy efficiency is complicated due to its subjective measures and interrelated nature.
Over the years, the conversation around energy efficiency has shifted from supporting industry to personal responsibility. During that time, energy-efficient measures have increasingly been put in the hands of consumers, both figuratively and literally. However, recent developments indicate that our society will only become more energy-efficient over the coming decades.
Continue Reading: An Overview of Energy-Saving Technologies
References and Further Reading
Dunlop, T. (2022). Energy efficiency: The evolution of a motherhood concept. SAGE Open Nursing, 52(5). https://doi.org/10.1177/23779608221076811
Giraudet, L. Missemer, A. (2023). The history of energy efficiency in economics: Breakpoints and regularities. Energy Research & Social Science, Vol. 97. https://doi.org/10.1016/j.erss.2023.102973
Goh, T. and Ang, B.W. (2020). Four reasons why there is so much confusion about energy efficiency. Energy Policy, 146, https://doi.org/10.1016/j.enpol.2020.111832
Office of Energy Efficiency & Renewable Energy. (n.d). Energy Efficiency: Buildings and Industry. [Online] Available at: https://www.energy.gov/eere/energy-efficiency-buildings-and-industry
oll.libertyfund.org. (n.d.). The Coal Question | Online Library of Liberty. [online] Available at: https://oll.libertyfund.org/titles/jevons-the-coal-question
US Department of Energy. (2017). Saving Energy and Money with Appliance and Equipment Standards in the United States. https://www.energy.gov/sites/prod/files/2017/01/f34/Appliance%20and%20Equipment%20Standards%20Fact%20Sheet-011917_0.pdf
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