A recent report, “Positive Returns: State Energy-Efficiency Analyses Can Inform U.S. Energy Policy Assessments,” conducted by the American Council for an Energy-Efficient Economy (ACEEE) found that energy efficiency can assist in growing the economies of both individual states and the U.S. economy as a whole. After examining 48 state- and regional-level “efficiency potential” studies conducted over the last 15 years, the report concludes that policies emphasizing investment-led energy-efficiency improvements would results in a small but net positive benefit for the U.S. economy.

Specifically, the report found:

• An average 23 percent efficiency gain, with a nearly 2 to 1 benefit-cost ratio, in the set of studies reviewed;
• A 20 percent efficiency gain by 2030 could provide an estimated 800,000 net jobs, while a 30 percent efficiency improvement might generate as many as 1.3 million net jobs; and
• Efficiency-led policies would likely increase the nation’s economy (as measured by U.S. Gross Domestic Product,) by about 0.1 percent by 2030.

An ACEEE spokesman said “Energy efficiency can provide a significantly large contribution toward stabilizing energy prices and limiting emissions of greenhouse gases... It is important for policymakers to realize both the scale of this opportunity and the positive economic benefits provided by an emphasis on greater energy productivity.”

In most cases, energy efficiency is not included in national economic models. This inclusion could show how the estimated costs of energy and climate change policy would fall, while the benefits—net job creation, and savings for consumers—would rise.

NSBA has long advocated that energy efficiency must be a central component of any national effort to confront America’s dependence on oil and the specter of global climate change. Well-designed energy efficiency programs are much more cost effective than increasing supply and usually can be deployed much faster. NSBA stresses that any federal effort to promote improved energy efficiency must focus on America’s 27 million small-business owners, whom collectively stand to conserve huge amounts of energy and money.

To help small business improve their energy efficiency, NSBA has partnered with the voluntary ENERGY STAR® Small Business program, which will provide technical support, to challenge the 150,000 small businesses it reaches to reduce their energy consumption by 10 percent or more through improved energy efficiency. To learn more about NSBA’s ENERGY STAR Challenge or how you might be able to improve your businesses energy efficiency, please see: http://www.nsba.biz/energy.html.

To view the full ACEEE report, please see: www.acee.org/pubs/e084.htm.