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Average Energy Use kWh per Year 2,000
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Refrigerator Size Cubic Feet 230
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1,500
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1,000
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500 California Standard Comes into Effect
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0 1960 1970 1980
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130 2002
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US Refrigerator Energy Use
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Source: David Goldstein, Natural Resources Defense Council
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supplies for electronic devices that draw as little as 025 watts for little additional cost Also, utility companies could aid in the ef ciency quest by billing with better breakdowns that allow the consumers to see the actual cost of individual appliances People are more likely to save energy (and money) when they know what s being consumed82 In the transportation sector, increasing fuel economy standards globally would help curb oil usage and cut down on emissions Raising average fuel standards by approximately one mile per gallon saves nearly one million barrels of oil imports every day In this respect, the recent congressional approval to boost US corporate average fuel economy (CAFE) from roughly 25 miles per gallon today to 35 miles per gallon in 2020 the rst meaningful increase in the CAFE standards since 1984 will make a difference The Union of Concerned Scientists estimates the higher standard will eliminate greenhouse gas emissions equivalent to taking 28 million of today s cars and trucks off the road and save consumers at least $30 billion per year (if gasoline at the pump stays above $325 per gallon)83 You wonder why the United States waited 24 years for such new legislation If we pushed toward fuel standards that have been adopted in other countries, it is very easy to see how four to ve million barrels of oil imports could be reduced from our current 12 to 13 million barrels Moreover, by mandating the 55-mile-per-hour speed limit, an additional two million barrels a day could be saved (see Figure 37)
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10 8 6 4 2 0 1970
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se eing the e le phant
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55 MPH Speed Limit Imposed 1973
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Relaxed 1987
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US Gasoline Use (Million Barrel s Per Day)
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Source: Energy Information Administration
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Industry has less room for improvement than the residential sector, which represents 5 percent of United States energy usage In the industrialized world, industrial energy ef ciency has been pursued vigorously since the oil crises in the 1970s and is re ected by the lower levels of energy intensity in most countries that are members of the Organization of Economic Cooperation and Development (OECD) As GDP in these countries grows their use of energy becomes more ef cient In fact, since 1970 the costs for producing every dollar of national income have shrunk by 49 percent in the United States84 Yet there are still technologies available to save energy in the industrial sector, and the government could support industry in its energy savings efforts by undertaking demonstration projects and energy audits Although energy intensity in emerging market countries is slowly decreasing, those countries still have a long way to go before achieving the standards of the industrialized world (see Figure 38) Considering the stakes for the entire world if energy demand goes out of control, wealthy countries have a real interest in helping their less developed neighbors to increase their energy ef ciency Technology and knowledge sharing, a reduction of tariff barriers for energy-effective technologies, and high domestic taxes for inef cient technologies coming out of the developing world can produce the right incentives to accelerate a less energy consuming pattern in the developing world You might nd it surprising
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Thousand Btu per 2000 Dollar of GDP 25 20 15 10 5 Other Non-OECD 0 1980 1995 2005 2015 2030 OECD Non-OECD Europe and Eurasia History Projections
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Energy Intensity by Region, 1980 2030
Source: Energy Information Administration
that countries still subsidize energy (especially fossil fuel), but they do McKinsey estimates that average fuel ef ciency in countries with fuel subsidies are half of what they are in countries without subsidies Cut them out, and the world theoretically can save three million barrels of oil a day85