energy justice Flashcards
conservation
to reduce energy usage by using goods and services less often
efficiency
to reduce energy usage while still using goods and services to the same extent as before
both physical measure
what is mckinsey curve
a marginal abatement cost curve
shows that minimum energy use does not always equal minimum cost
x axis is gigatons of energy per year that is abated/reduced.
y axis is cost per ton CO2 abatement (marginal abatement cost)
it graphs the marginal cost to abate an additional unit of emissions for different types of emission reduction technology, so that companies can understand the money being saved or lost when investing in particular types of emissions reduction technology for abatement needs
energy efficiency gap
the wedge between
the implemented energy efficiency investments —- the energy efficiency investments that are most cost effective
aka
ideal implementation - actual implement = gap
energy efficiency gap areas of error
-hidden costs
-incorrect energy save models
-uncertain future saving rates
-irreversible investment decisions
-incorrect engineering assumptions
calculating energy efficiency gap
example for LED vs ID lightblub
find annual cost for each type of bulb and subtract them.
factor in discount rate for future years
the principal agent problem
when a principal has an objective, and relies on an agent to achieve it, but the agent has different objective.
landlord and tenant: tenant wants good appliances and maintenance, relies on landlord for it, but landlord wants to save money most
non standard preferences
- self control problems
- reference dependent preferences (loss aversion)
non standard beliefs
systematically incorrect beliefs abt future
non standard decision making
- limited attention
- framing
- suboptimal heuristics
energy efficiency policy mechanisms
information based approach: gold star
standards: CAFE standards
monetary: tax rebates
tech subsidies
goal setting for communities
rebound effect
the paradox that increased energy efficiency leads to increased consumption
how to fix the rebound effect
target energy efficiency to inelastic products: stuff that will not increase in usage as a result of higher efficiency
target something like car efficiency, do not target something like washer
