Conservation

From the EEI Newsletter:

McKinsey Global Study Says Efficiency Steps Can Result in Major Savings
A study by the McKinsey Global Institute has concluded that new product-standard mandates will be needed to achieve significant energy savings, the New York Times reported today. The study found that use of compact fluorescent light bulbs and other high-efficiency measures in residential buildings could cut electricity consumption in the U.S. by more than a third by 2020. Other measures cited included more efficient water heaters, kitchen appliances, and room-insulation materials, in addition to the use of standby power. The study suggests forcing these products to become more efficient through more stringent product standards.

Diana Farrell, director of the institute, was quoted by the newspaper as saying: "The study makes a strong case for what economists tend to shy away from — market intervention. But this would be market intervention to correct market distortions that exist." Robert N. Stavins, an environmental economist at Harvard University, doubted the size of the energy savings that the study predicted. The newspaper quoted Stavins as saying: "Often, the reason energy-efficient improvements have not been widely adopted is that there are real costs to many sets of individuals and they are making personally rational choices."

Separately, a plan has been launched by the William J. Clinton Foundation that would provide billions of dollars to improve energy efficiency in urban buildings around the world, the Times reported today. Under the plan, five banks would provide up to $1 billion each in loans to cities or private landlords to upgrade the efficiency of heating, cooling and lighting systems in older buildings. The loans would be repaid with the energy savings realized. The first group to benefit from the plan will be municipal buildings in the cities of Bangkok; Berlin; Chicago; Houston; Johannesburg; Karachi, Pakistan; London; Melbourne, Australia; Mexico City; Mumbai, India; New York; Rome; São Paulo, Brazil; Seoul, South Korea; Tokyo; and Toronto.
New York Times (Energy standards) ; New York Times (Building energy-efficiency) , May 17.