In 1973, the Arab members of the Organization of Petroleum Exporting Countries (OPEC) imposed an oil embargo that increased energy prices, spurring efforts to conserve energy and improve energy efficiency in the US and worldwide. In 1980, energy efficiency researchers formed the American Council for an Energy-Efficient Economy. As we turn 35 years old this year, we thought it would be useful to look at energy efficiency progress over the past 35 years, and to also look at possible and recommended pathways for the next 35 years. Today we are releasing the results of this work in a report entitled Energy Efficiency in the United States: 35 Years and Counting.
The Past 35 Years
From 1980 to 2014, US energy use increased by 26%; however, over this same period, gross domestic product (GDP) increased 149%. “Energy intensity,” defined as energy use per real dollar of GDP, is a common approach for combining these two variables. US energy intensity has declined from 12.1 thousand Btu per dollar in 1980, to 6.1 in 2014, a 50% improvement. While part of that improvement can be attributed to structural changes in the economy, we conservatively estimate that about 60% of the improvement in energy intensity is due to efficiency improvements, saving consumers and businesses about $800 billion in 2014. Dividing by the US population, energy efficiency saved about $2500 per capita in 2014. These efficiency investments and savings also generated jobs and drove modest growth in the overall size of the economy (check out our fact sheet to learn how energy efficiency creates jobs).
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