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Is Energy Efficiency Environmentally Friendly?

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  • Horace Herring

    (Energy & Environment Research Unit, The Open University)

Abstract

This paper challenges the view that improving the efficiency of energy use will lead to a reduction in national energy consumption, and hence is an effective policy for reducing CO 2 emissions. It argues that improving energy efficiency lowers the implicit price of energy and hence make its use more affordable, thus leading to greater use. The paper presents the views of economists, as well as green critics of ‘efficiency’ and the ‘dematerialization’ thesis. The paper argues that a more effective CO 2 policy is to concentrate on shifting to non-fossil fuel fuels, like renewables, subsidized through a carbon tax. Ultimately what is needed, to limit energy consumption, is energy conservation not energy efficiency.

Suggested Citation

  • Horace Herring, 2000. "Is Energy Efficiency Environmentally Friendly?," Energy & Environment, , vol. 11(3), pages 313-325, May.
    • Handle: RePEc:sae:engenv:v:11:y:2000:i:3:p:313-325
    DOI: 10.1260/0958305001500167
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    References listed on IDEAS

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    1. David L. Greene & James R. Kahn & Robert C. Gibson, 1999. "Fuel Economy Rebound Effect for U.S. Household Vehicles," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-31.
    2. Horace Herring, 1996. "Is Energy Efficiency Good For The Environment? Some Conflicts And Confusions," World Scientific Book Chapters, in: G MacKerron & P Pearson (ed.), The Uk Energy Experience A Model or A Warning?, chapter 24, pages 327-338, World Scientific Publishing Co. Pte. Ltd..
    3. Vehmas, Jarmo & Kaivo-oja, Jari & Luukkanen, Jyrki & Malaska, Pentti, 1999. "Environmental taxes on fuels and electricity -- some experiences from the Nordic countries," Energy Policy, Elsevier, vol. 27(6), pages 343-355, June.
    4. Patterson, Murray G, 1996. "What is energy efficiency? : Concepts, indicators and methodological issues," Energy Policy, Elsevier, vol. 24(5), pages 377-390, May.
    5. David L. Greene & James R. Kahn & Robert C. Gibson, 1999. "Fuel Economy Rebound Effect for U.S. Household Vehicles," The Energy Journal, , vol. 20(3), pages 1-31, July.
    6. Schurr, Sam H., 1985. "Energy conservation and productivity growth : Can we have both?," Energy Policy, Elsevier, vol. 13(2), pages 126-132, April.
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