Describes two models that predict the optimum combination of energy conservation options to reduce energy input and CO2 emissions. Improvements in supply and end-use efficiency are less expensive than adding generating capacity. Investigates opportunities and barriers for electricity conservation, and finds that lifestyle, as well as socioeconomic characteristics, are important to consumption and conservation. Lack of information and transaction costs may prevent consumers from purchasing the most efficient devices. Such market barriers suggest a role for regulatory intervention to improve market performance at prevailing energy prices.
Conservation is the best option to ensure stabilization of energy production in the near future.
Energy and the environment are important components of current economic policies. The use of economic incentives to achieve environmental objectives will require careful evaluation and communication of the pros and cons, and the willingness of policy makers and the public to appreciate the benefits and tolerate the compromises. New legislation promotes partnerships between utilities and industry to find and implement energy efficiency improvements. Government-subsidized DSM programs for industry will be detrimental to market development and to other energy consumers. DSM life cycle models can help utilities anticipate the types of planning, implementation, evaluation tools, and data needed.