Energy efficiency and conservation
Gillingham, Richard and Karen from different institutions provide a review of concepts in the economy that influence the choices of consumers in regards to energy conservation and efficiency. The authors agree that energy efficiency dramatically contributes to the economic wellbeing of a nation while energy conservation is stereotypically concerned with reducing the amount of energy consumed in total. It is considered a more effective way of reducing greenhouse gas emissions compared to energy efficiency. The authors provide evidence on energy efficiency being an investment in energy production services, using an example of multisectoral or sectoral and household levels with energy and capital applied for energy production services (597).
Herring Horace provides a case study on the critical view of energy efficiency, focusing on the observation that energy efficiency improvement could result in the overall amount for CO2 and other greenhouse gas emissions. The author argues that economically, energy efficiency would significantly lead to a reduction in energy prices, encourage more usage due to affordability. The author contends that changing to the use of non-fossil fuels is a better and effective policy for CO2 emissions reduction. Herring points out that energy efficiency is a means of helping save money but not reducing greenhouse gas emissions as much as energy conservation does. “Thus, energy efficiency is not as ‘environmentally friendly’ as many claims.” (11).
In “Energy efficiency and consumption-the rebound effect-a survey,” an article by Greening, Lorna and Carmen provides a review in which they conclude that the rebound effect’s size estimated ranges from very small to reasonable. The authors point out that an increase in energy efficiency would result in a decrease in the unit prices of energy amenities (383). This would, therefore, lead to a rise in energy consumption activities, not conserving energy in this case. ‘As a result, consumption of energy services should increase (i.e., “rebound” or “take-back”), partially offsetting the impact of the efficiency gain in fuel use.” (385). This is quite agreeable as a general spike in energy consumption activities without the use of renewable energy sources will promote carbon and other greenhouse gases emission.
Gillingham, Kenneth, Richard G. Newell, and Karen Palmer. “Energy efficiency economics and policy.” Annu. Rev. Resour. Econ. 1.1 (2009): 597-620.
Herring, Horace. “Energy efficiency—a critical view.” Energy 31.1 (2006): 10-20.
Greening, Lorna A., David L. Greene, and Carmen Difiglio. “Energy efficiency and consumption—the rebound effect—a survey.” Energy policy 28.6-7 (2000): 389-401.