A2 The Concepts of First and Second Law Efficiency

The basic difference between both concepts is that while first law efficiency solely relates to the specific technology applied in order to satisfy certain tasks, for example, illumination and space heating, the concept of second law efficiency takes into account both the actual technology employed and the technology that would theoretically be the best for the same task. Our following example on whether to heat a house with either electric furnaces or heat pumps illustrates the difference...

Externalities as Benefits and Drawbacks of Energy Efficiency

This section illustrates the large number of externalities in energy efficiency, since EE provides external benefits or imposed external costs in addition to financial outcome and energy production. As suggested in Table 5.9, the positive externalities are substantial. The table shows that externalities exist on a local, national, regional and global level. Institutions, such as the GEF focus mainly on global externalities. This contrasts with the fact that national and local benefits and the...

Energy Efficiency Conclusion

Certainly there are several reasons, a number of pros and cons to improve energy efficiency. Theoretically, with the magic formula ceteris paribus, the pros prevail and the experience from developed countries confirms this in practice as well. Transition economies have a chance to either improve or introduce energy efficiency, and despite the fact that the obstacles and negatives exist, EE has a great potential, which should be utilized. Whilst an increase in energy efficiency investment can...