E5 Individual Interests Versus Societal Interests

Power Efficiency Guide

Ultimate Guide to Power Efficiency

Get Instant Access

Diffusion of EE measures depends mainly on human interaction for acceptance and behaviour.

Energy efficiency investment has effects of society-wide interest that can be used by policy makers to catalyze voluntary behaviour. In a free market, customers will get the best price and can buy only the goods and services they wish to buy. However, the free market approach only works if the market for efficiency is structured in such a way that customers can actually express their desire for EE through purchases. This type of market structure does not exist in many parts of the world. EE measures can help to restructure and revamp the existing relatively small market for energy efficiency products into a free market. EE measures can create significant employment opportunities too. New jobs can be created especially in manufacturing and construction sectors. This is particularly the case where EE projects can demonstrate positive impacts for social groups currently disadvantaged in the employment market, for example, those with low skills and fewer qualifications, living in economically deprived areas with energy starved conditioning.

In case of societal interests, EE measures cannot help reduce pollution levels, but can provide significant benefits for local economies. If expenditure on energy is reduced, the savings will improve the performance of the local economy via the 'multiplier effect' to the extent the savings are spent in the local economy. The multiplier effect is an economic phenomenon characteristic of all economies, relating the spending and re-spending effects of money on the output of local economies. Also, the expenditure on energy efficiency improvements itself will improve the local economic performance because the materials and labour for those improvements are likely to come from the local economy. In today's global markets, economic growth is synonymous with efficient energy production, delivery and use. It enables increased output from power transmitters, electrical cables, motors and production units. On the supply side, it is no coincidence that energy production and delivery efficiency is higher in more developed economies.

Was this article helpful?

0 0
Renewable Energy Eco Friendly

Renewable Energy Eco Friendly

Renewable energy is energy that is generated from sunlight, rain, tides, geothermal heat and wind. These sources are naturally and constantly replenished, which is why they are deemed as renewable.

Get My Free Ebook

Post a comment