The question being asked very often is why consumers and firms do not invest in cost-effective energy efficiency opportunities. Partly, the answer is that consumers and firms discount future savings of energy efficiency
investments at rates well in excess of market rates for borrowings or savings. This pattern is referred to as the 'energy efficiency gap'.20 To understand the EE gap, it is essential to study (a) the characteristics of markets for energy-efficient technologies (EETs), (b) the nature of institutional energy-related decision making and (c) the nature of an individual consumer's energy-related decision making.
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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. The usage of renewable energy sources is very important when considering the sustainability of the existing energy usage of the world. While there is currently an abundance of non-renewable energy sources, such as nuclear fuels, these energy sources are depleting. In addition to being a non-renewable supply, the non-renewable energy sources release emissions into the air, which has an adverse effect on the environment.