When Energy Efficiency Sullies the Environment

Original Article:

http://www.nytimes.com/2011/03/08/science/08tier.html?_r=1&src=recg

Snippets:

Energy-efficiency standards have been embraced by politicians of both parties as one of the easiest ways to combat global warming. Making appliances, cars, buildings and factories more efficient is called the “low-hanging fruit” of strategies to cut greenhouse emissions.

But a growing number of economists say that the environmental benefits of energy efficiency have been oversold. Paradoxically, there could even be more emissions as a result of some improvements in energy efficiency, these economists say.

The problem is known as the energy rebound effect. While there’s no doubt that fuel-efficient cars burn less gasoline per mile, the lower cost at the pump tends to encourage extra driving. There’s also an indirect rebound effect as drivers use the money they save on gasoline to buy other things that produce greenhouse emissions, like new electronic gadgets or vacation trips on fuel-burning planes....

“Efficiency advocates try to distract attention from the rebound effect by saying that nobody will vacuum more because their vacuum cleaner is more efficient,” Mr. Shellenberger said. “But this misses the picture at the macro and global level, particularly when you consider all the energy that is used in manufacturing products and producing usable energy like electricity and gasoline from coal and oil. When you increase the efficiency of a steel plant in China, you’ll likely see more steel production and thus more energy consumption....”

But if your immediate goal is to reduce greenhouse emissions, then it seems risky to count on reaching it by improving energy efficiency. To economists worried about rebound effects, it makes more sense to look for new carbon-free sources of energy, or to impose a direct penalty for emissions, like a tax on energy generated from fossil fuels. Whereas people respond to more fuel-efficient cars by driving more and buying other products, they respond to a gasoline tax simply by driving less.