keannu
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- Dec 27, 2010
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Source : 2021 Korean SAT, No 37
Experts have identified a large number of measures that promote energy efficiency. Unfortunately many of them are not cost effective. This is a fundamental requirement for energy efficiency investment from an economic perspective.
However, the calculation of such cost effectiveness is not easy: it is not simply a case of looking at private costs and comparing them to the reductions achieved.
There are significant externalities to take into account and there are also macroeconomic effects. For instance, at the aggregate level, improving the level of national energy efficiency has positive effects on macroeconomic issues such as energy dependence, climate change, health, national competitiveness and reducing fuel poverty. And this has direct repercussions at the individual level: households can reduce the cost of electricity and gas bills, and improve their health and comfort, while companies can increase their competitiveness and their productivity.
Finally, the market for energy efficiency could contribute to the economy through job and firms creation.
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Does this passage say that energy efficiency measures should start by considering macroeconomic effects not microeconomic ones?
Experts have identified a large number of measures that promote energy efficiency. Unfortunately many of them are not cost effective. This is a fundamental requirement for energy efficiency investment from an economic perspective.
However, the calculation of such cost effectiveness is not easy: it is not simply a case of looking at private costs and comparing them to the reductions achieved.
There are significant externalities to take into account and there are also macroeconomic effects. For instance, at the aggregate level, improving the level of national energy efficiency has positive effects on macroeconomic issues such as energy dependence, climate change, health, national competitiveness and reducing fuel poverty. And this has direct repercussions at the individual level: households can reduce the cost of electricity and gas bills, and improve their health and comfort, while companies can increase their competitiveness and their productivity.
Finally, the market for energy efficiency could contribute to the economy through job and firms creation.
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Does this passage say that energy efficiency measures should start by considering macroeconomic effects not microeconomic ones?
