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Does Greater Energy Efficienty Encourage Increased Consumption?

The Economist: “Energy efficiency is probably the most popular environmental panacea. While politicians discuss complicated global climate-change deals, economists tinker with intricate emissions-trading schemes and engineers design a new generation of nuclear-power plants, many greens advocate simpler steps: buying more efficient cars, replacing wasteful incandescent bulbs with efficient fluorescent ones and installing proper insulation. The International Energy Agency reckons that more efficient manufacturing, cosier houses and frugal transport could reduce energy demand worldwide by a third by 2050.”

  • “The UK Energy Research Centre (UKERC)…unveil[ed] a major new report on how ‘Rebound Effects’ can result in energy savings falling short of expectations, thereby threatening the success of UK climate policy. An example of a rebound effect would be the driver who replaces a car with a fuel-efficient model, only to take advantage of its cheaper running costs to drive further and more often. Or a family that insulates their loft and puts the money saved on their heating bill towards an overseas holiday.”
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