Energy conservation and a healthy economy

A re-optimizing of energy end use so that the same benefits are realized at lower energy costs is possible with a strict commitment to energy conservation. The second law of thermodynamics, which applies to all fuels and all energy uses, provides a technical basis for analyzing energy efficiency and estimating potential savings. Available technology exists to accomplish effective savings, but substantial capital investment is needed for long-term improvements. Although a comparison of capital requirements for several energy supply and conservation efforts illustrates the economic soundness of conservation, industry has been slow, in practice, to recognize its benefits and has taken only those measures required by threatened fuel shortages. Comparisons of Federal Energy Administration forecasts of energy consumption with an accelerated conservation plan indicate there would be no negative social or economic impact in spite of a reduced rate of growth and a capital cost of less than half the FEA projections. The Accelerated Conservation Policy calls for a slower growth rate in electricity use; enforcement of fuel economy standards; substitution of facilities for co-generation, district heating, refuse-derived fuels, and other strategies in place of planned central power systems; and emphasis on strict efficiency standards and financial incentives for achieving them.more » Conservation offers, in addition, time to explore all the alternative energy sources more thoroughly. 13 references. (DCK)« less