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Fallacies of energy efficiency indicators: Recognizing the complexity of the metabolic pattern of the economy

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  • Velasco-Fernández, Raúl
  • Dunlop, Tessa
  • Giampietro, Mario

Abstract

The strategy of energy efficiency to save energy is deceptively simple: the idea is to use less input for the highest amount of useful output. However, on a practical and conceptual level, efficiency is an ambiguous and problematic concept to implement. Of particular concern is the lack of contextual and qualitative information provided in energy efficiency measurements based on simple ratios. Oversimplification of efficiency measurements can have a detrimental effect on the choice of energy policies. Efficiency measurements are particularly problematic on a macroeconomic scale where a significant amount of meaningful information is lost through the aggregation of data into a simple ratio (economic energy intensity). First, practical examples are presented flagging conceptual problems with energy efficiency indicators, then an alternative accounting method—the end-use matrix—based on the concept of the metabolic pattern of social-ecological systems is illustrated to show the possibility of enriching efficiency indicators by adding qualitative and contextual information across multiple scales and dimensions. This method unpacks and structures salient energy input and output information in a meaningful and transparent way by generating a rich multi-level and multi-dimensional information space.

Suggested Citation

  • Velasco-Fernández, Raúl & Dunlop, Tessa & Giampietro, Mario, 2020. "Fallacies of energy efficiency indicators: Recognizing the complexity of the metabolic pattern of the economy," Energy Policy, Elsevier, vol. 137(C).
    • Handle: RePEc:eee:enepol:v:137:y:2020:i:c:s0301421519306767
    DOI: 10.1016/j.enpol.2019.111089
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    8. Susana Toboso‐Chavero & Gara Villalba & Xavier Gabarrell Durany & Cristina Madrid‐López, 2021. "More than the sum of the parts: System analysis of the usability of roofs in housing estates," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1284-1299, October.
    9. Biqing Li & Qiuting Liu & Yuming Li & Shiyong Zheng, 2023. "Socioeconomic Productive Capacity and Renewable Energy Development: Empirical Insights from BRICS," Sustainability, MDPI, vol. 15(7), pages 1-14, March.
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