The document discusses the gap between the potential energy savings from energy efficiency measures and the actual savings achieved. It provides evidence from multiple sources that this gap exists and is sizable. It then discusses some popular explanations for why the gap occurs, such as information problems, inertia, misplaced incentives between renters and owners, and energy prices not reflecting societal costs. The document asks what else may explain the gap and emphasizes understanding the reasons for the gap rather than judging them as people intentionally doing bad things.
The document discusses the gap between the potential energy savings from energy efficiency measures and the actual savings achieved. It provides evidence from multiple sources that this gap exists and is sizable. It then discusses some popular explanations for why the gap occurs, such as information problems, inertia, misplaced incentives between renters and owners, and energy prices not reflecting societal costs. The document asks what else may explain the gap and emphasizes understanding the reasons for the gap rather than judging them as people intentionally doing bad things.
The document discusses the gap between the potential energy savings from energy efficiency measures and the actual savings achieved. It provides evidence from multiple sources that this gap exists and is sizable. It then discusses some popular explanations for why the gap occurs, such as information problems, inertia, misplaced incentives between renters and owners, and energy prices not reflecting societal costs. The document asks what else may explain the gap and emphasizes understanding the reasons for the gap rather than judging them as people intentionally doing bad things.
Renewable & Sustainable Energy Institute University of Colorado Boulder, CO USA Evidence for a gap More evidence for a gap
Source: McKinsey 2008.
One perspective on the gap: Consumers and behavior http://www.samsung.com/my/consumer/home-appliances/refrigerator/multi-door/RF905Q Source: E Source Source: E Source Why is there a gap? Some popular explanations • Information problem: If people knew and understood, they would act appropriately • Inertia makes any kind of change very difficult • Evil (fill in the blank) are blocking change • There isn’t a gap – the analysis is flawed • Incentives are misplaced - e.g. renter/owner problem • Energy prices don’t reflect societal costs • What else? Understanding the gap • Bad things happen for good reasons. • (almost) universal agreement: energy efficiency is an ‘underutilized resource’ • What can be done about that? Earthrise, 1968