The contribution of energy efficiency to global energy services: the role of policy measures

Paul Waide, Rick Bradley, Alan Meier, Matt Oravetz, Satoshi Tanishima, and Fridtjof Unander, International Energy Agency

Keywords

Energy efficiency potentials, energy efficiency trends, energy reserves, market barriers, impacts of energy efficiency policy measures, international overview of energy efficiency

Abstract

The provision of energy services in the form of motive power, thermal comfort, light, etc., is a fundamental element underpinning all human economic activities. Demand for these services has been growing since at least the start of human recorded history and their successful provision has been a key element influencing human economic progress. Each year there is speculation about the durability of primary energy reserves and the delivery capacity in the energy supply system. Less thought is focused on how energy supplies are being used and the potential to use them more efficiently to obtain the same energy service. But how appropriate is this emphasis?

This paper presents a review of energy efficiency in the industrialised nations, its contribution to existing energy services and its potential to be mined further. It also presents a quick summary of efficiency policy measures implemented to date and quantifies their impacts. In the case of the USA, for example, at least 38% of the total recorded efficiency improvements in the year 2000 can be attributed to the impact of major government or utility initiated policy measures and programmes.

The paper concludes that were it not for efficiency improvements between 1973 and 1998 that final energy demand in industrialised nations would have been 49% higher. By this metric energy efficiency improvements have made a 20% greater contribution to the supply of energy services than oil!