Thursday, January 21, 2010

Crossing the Energy Divide (Book)

New York Times (Witkin) - According to Robert Ayres and Edward Ayres, brothers and co-authors of the recently published book, “Crossing the Energy Divide,” the American economy uses energy with only 13 percent efficiency. This means for every unit of fuel burned, only 13 percent of the potential energy is actually converted as useable output to power machines, and illuminate and heat buildings. Most of the remaining energy is discarded, typically in the form of waste heat that, with the right application of technology, could be used for electricity generation or space and water heating.

By recycling this waste energy resource, the United States could double the energy efficiency of its economy, which would also effectively double the nation’s energy supply. In the process, “we would reduce carbon emissions and boost economic growth during the next several decades,” the authors say. But widespread adoption of efficiency measures like this faces obstacles, which the authors describe as “ideological blind spots, structural barriers, bad habits and outdated laws.”


The biggest problem with industry today is the obsession with growth over other types of investments. They think if they grow bigger then that will take care of profits. Profits will come with size and less competition. So they are less focused on becoming competitive, but more focused on eliminating competition. They miss a lot of opportunities for energy conservation, which could be quite profitable.

And the banks are more inclined to loan money for projects that involve expansion, especially if they can have the security of a building or other hard asset. They are less interested in loaning money for energy efficiency measures that can reduce costs. I think this is another important reason why energy efficiency hasn’t taken off like it should. If we are serious about increasing the economic productivity we get from the energy we use, we are going to need to change this type of thinking.

No comments:

Post a Comment