Location Efficiency as the Missing Piece of The Energy Puzzle: How Smart Growth Can Unlock Trillion Dollar Consumer Cost Savings

Mary Jean Bürer and David B. Goldstein, Natural Resources Defense Council
John Holtzclaw, Sierra Club

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Abstract

This report reviews recent research on location efficiency and uses these results to project scenarios for reductions in energy use, global warming pollutants, and consumer costs. It begins by reviewing the literature on location efficiency. Location efficiency reflects the average amount of car ownership and distance driven for a household located in a particular neighborhood. In the analysis the energy efficiency potential of smart growth developments (the type that are occurring in the US) are estimated using location efficiency research findings. The results show energy savings of a comparable magnitude after ten years to other major building energy efficiency policies, such as construction codes, appliance standards, and DSM programs. Consumer present value savings are an order of magnitude higher at $2.3 trillion. Policy options for expanding smart growth and realizing its potential are briefly discussed.