Energy-efficient technologies and policies can help us win the race to save the planet

Past achievements in energy efficiency in the residential sector are reviewed and policy mechanisms for continuing such savings are discussed. Between 1973 and 1985, the efficiency of most new individual energy-using products doubled, and this occurred with minimal investments; the price difference between the existing and the more efficient product was typically recovered through reduced energy bills in three years or less. This is illustrated with examples including automobiles, refrigerators, windows, and lighting. With the recent decline in oil prices, energy use per unit of gross national product in the USA has risen slightly and high energy prices no longer provide the main motivation for further energy efficiency improvements. Other considerations that promote energy efficiency include the economic growth that results from using energy efficient products, environmental protection, and the need to reduce greenhouse gas emissions. Further energy efficiency improvements can be made using effective policies, such as establishment of energy-use labels for appliances and equipment, imposing energy efficiency standards, providing incentives for appliance and equipment manufacturers to produce energy efficient products, using fees and rebates to reduce energy use, building automobile insurance costs into gasoline prices, integrated resource planning and demand side management by energy utilities, and mortgage rates based on energy efficiency and conservation considerations. 42 refs., 6 figs., 2 tabs