Energy efficiency is a proven, cost-effective method to reduce climate pollution – including carbon dioxide emissions – on a global scale. Indeed, improving energy efficiency is one of the fastest paths towards reaching net zero emissions.
Market imperfections may lead to underinvestment in energy efficiency. For instance, consumers do not consider the costs associated with energy-efficient products when making purchasing decisions.
It’s good for your wallet
Energy efficiency is one of the easiest and cheapest ways to cut energy costs, cutting electricity and fuel bills by eliminating waste and pollution. Furthermore, energy efficiency is one of the cost-effective methods of meeting international commitments on climate action.
Energy efficient upgrades differ significantly from renewable energy technologies in that they typically have lower upfront costs and shorter payback periods than renewable technologies, making them especially accessible for low-income households and communities, as well as businesses looking to increase profitability.
Reduced energy demand helps protect biodiversity and ecosystems by decreasing fossil fuel extraction, and helps mitigate negative impacts to biodiversity and ecosystems. Furthermore, many utility service territories offer rebates that offset some of the up-front cost associated with installing energy-efficient appliances like LED light bulbs, heat pumps and refrigerators.
It’s good for the planet
Energy efficiency is often the lowest-cost method of mitigating emissions, making it a key element of meeting climate goals. More cost-effective than renewable sources like wind or solar, energy efficiency can cut power plant construction needs while simultaneously cutting consumer electricity bills.
Energy efficiency can greatly benefit communities most vulnerable to pollution and climate change, including children with asthma and the elderly. Furthermore, it reduces fossil fuel burning which produces harmful air pollutants and greenhouse gases – ultimately benefitting all stakeholders involved.
Energy efficiency investments offer key national security benefits by decreasing our dependence on foreign sources and strengthening resilience against disruptions to supplies, helping prevent geopolitical tensions over energy production and distribution. Furthermore, the energy efficiency industry employs more people than both wind and solar combined; making it an integral contributor towards creating a greener world.
It’s good for health
Many energy efficiency measures that lower utility bills also improve indoor air quality, helping people breathe easier and reducing symptoms associated with respiratory illness – this is especially significant given that respiratory illnesses account for 4% of health-care expenditure worldwide.
Reduce energy waste in buildings can help to decrease carbon dioxide pollution and greenhouse gas emissions, improving outdoor air quality and decreasing acid rain.
Kennedy likens her work to environmental health programs, in that the services she and her colleagues perform in homes improve how air flows, heats up or cools down as needed, eliminates temperature extremes and ultimately leads to improved indoor health.
Studies have already demonstrated the positive public health impact of installing solid wall insulation in homes, for instance. Emergency admissions due to cardiovascular and respiratory illnesses were significantly decreased after installing such insulation; further follow up studies are necessary to ascertain its longevity but this illustrates how energy efficiency measures could have an enduring effect.
It’s good for the economy
Energy efficiency is one of the leading job creators in the clean energy economy – creating five times more permanent jobs than solar and 12 times as many permanent jobs than coal. Energy efficiency provides permanent employment that cannot be outsourced or automated – providing economic security to communities around the globe.
Energy savings significantly cut consumer energy costs, with heating and cooling needs reduced by as much as 25%, particularly important for low-income households who spend a disproportionate share of their income on utilities and face hard choices between paying bills or purchasing nutritious foods.
Industry’s energy intensity of manufacturing is slowly diminishing, yet still accounts for a substantial proportion of total industrial costs. Still, progress is being made as companies work on optimizing energy use while creating greater efficiencies during product or service production.