Less Is More! Energy Efficiency as a Strategy for Energy and Environmental Policy in Mexico and South Africa

Rafael Friedmann and Kenneth James, Pacific Gas & Electric Company

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Abstract

Emerging countries have much to gain from incorporating energy efficiency and conservation into their future energy planning. Rapid energy demand growth and accompanying capital investments and rate subsidies are draining governments’ capacity to address other pressing social needs. A carefully crafted integration of energy efficiency and conservation into current supply-focused future energy policy can better serve society at a cheaper cost.

This paper draws upon the experience with energy efficiency in Mexico and South Africa, two emerging economy countries that have established an energy efficiency infrastructure that is primed for significantly addressing their energy constraints in a more socially beneficial fashion.

The paper ends with a generalized discussion, drawing on the Mexican and South African experiences, to provide guidelines for other emerging countries so that they can all capture the benefits of embarking in energy efficiency as a key component of their future energy sector development.