How Big Is the Energy Efficiency Resource? Amory B. Lovins Cofounder and Chief Scientist, Rocky Mountain Institute https://orcid.org/0000-0002-6362-3526 22830 Two Rivers Road, Basalt CO 81621, USA
[email protected] [unpublished direct email],
[email protected] [public email] phone +1 (970) 948-2280 (cell) or 927-3129 (assistant) 13 May 2018, revised 25 August 2018 Abstract Most economic theorists assume that energy efficiency—the biggest global provider of energy services—is a limited and dwindling resource whose price- and policy-driven adoption will inevitably deplete its potential and raise its cost. Influenced by that theoretical construct, most traditional analysts and deployers of energy efficiency see and exploit only a modest fraction of the worthwhile efficiency resource, saving less and paying more than they should. Yet empirically, modern energy efficiency is, and shows every sign of durably remaining, an expanding-quantity, declining-cost resource. Its adoption is constrained by major but correctable market failures and increasingly moti- vated by positive externalities. Most importantly, in both newbuild and retrofit applications, its quantity is several- fold larger and its cost lower than most in the energy and climate communities realize. The efficiency resource far exceeds the sum of savings by individual technologies because artfully choosing, combining, sequencing, and timing fewer and simpler technologies can save more energy at lower cost than deploying more and fancier but dis-integ- rated and randomly timed technologies. Such “integrative design” is not yet widely known or applied, and can seem difficult because it’s simple, but is well proven, rapidly evolving, and gradually spreading.