Energy Use

In “Using Energy More Efficiently” Amory Lovins from Rocky Mountain Institute argues that market forces, not regulation, will play the key role in promoting more efficient energy consumption.

Companies and markets outpace policymakers in the race for solutions. However, executives often overlook the opportunities for saving money with energy because it is only 1-2% of the cost of doing business. But saving energy is among the highest-return investment anywhere and it goes straight to the bottom line.

It is necessary to create a culture of measurement, curiosity, and improvement by unleashing human creativity. Policies need to support “business logic”.

An example is the policy innovation for electricity sector. Decoupling the profits of utilities from their sales volume allows utilities to keep a small share of the savings they achieve for their customers. In other words, the utilities are rewarded for cutting your bill, not for selling you more energy.

“The private market is so dynamic that it will be an immensely more responsive, powerful, creative force that public policy, which continue to play catch-up”.

http://www.mckinseyquarterly.com/Using_energy_more_efficiently_An_interview_with_the_Rocky_Mountain_Institutes_Amory_Lovins_2164