Smart Energy Policies: Saving Money and Reducing Pollutant Emissions through Greater Energy Efficiency

Steven Nadel and Howard Geller

with the Tellus Institute

September 2001

Executive Summary

Multiple Energy Problems Confront the United States

There are a variety of serious energy challenges confronting the United States. California has experienced power shortages and severe electricity price spikes. Power reliability problems could spread to other regions such as the Pacific Northwest or New York. Even if the lights stay on, electricity prices will continue to climb in many regions of the country—utilities in several states have increased electric rates by 40–50% this year. Natural gas prices have also significantly increased in many parts of the country, causing skyrocketing home energy bills this past winter. Furthermore, our reliance on imported oil has grown—oil imports more than doubled during the past 15 years and oil imports now exceed domestic oil production. Rising demand for oil and tight supplies have also caused gasoline prices to rise; the average price of gas in the United States topped $1.70 per gallon earlier this year and while prices have since abated, price spikes are likely to be a periodic phenomenon in the future.

In addition, emissions of the gases that contribute to global climate change continue to rise. In 2000, U.S. greenhouse gas emissions were up 16% relative to levels in 1990. However, under the Global Framework Convention agreed to in Rio de Janeiro in 1992 by then-President Bush and subsequently ratified by the Senate, the United States voluntarily committed to reducing our emissions to 1990 levels by 2000.

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79 pp., 2001, $18.00, E012