What Is Energy Efficiency?
Programs in Energy-Efficiency are Misleading Consumers
Although the U.S. government is among the first to establish an official policy on efficient home energy use, it failed to move away from its reputation as an energy-starved country and continues to indiscriminately consume energy. This, according to a recent article released by the Wall Street Journal, is due to an energy policy that is too costly to be effective.
Weatherization Assistance Program
The existing federal Weatherization Assistance Program was recently put in a controlled trial evaluation by reputed members of the academe from the University of California and University of Chicago and seems to prove Wall Street Journal’s accusation. The program was created to make homes more energy efficient and reliant on natural gas instead of oil/propane for heating by providing financial incentives to participant homeowners but the returns on energy saving are proving to be less than the subsidy from the program.
The program works in the principle that making communities energy efficient is for the greater good of the country and that the government should make it as conducive as possible for everyone to follow energy efficiency practices. The randomize trial evaluation done by Greenstone, Fowlie and Wolfram revealed a negative return of 2.2 percent in a 16 year period with valued return of only $2,400 per $5,000. According to Wall Street Journal, this is why many homeowners are uninterested with the weatherization program. The current administration’s carbon tax for each ton of emitted carbon is only $38. To get rid of the carbon emission, the government has to spend $329 per ton based on its Weatherization Assistance Program. The cost deficit is evidently clear.
Greenstone also looked at other subsidized programs of the government and found out that most of these programs rely on projections alone without factoring in field evidences when computing their returns. He also emphasized the importance of creating an established process in measuring the efficiency of energy conservation programs using industry-standard analytical methods.
If you want to get involve in energy conservation efforts, visit American Energy Coalition and register as a member supporter. If you want to donate to the cause, click on the “Make a Donation” link. You can also find the link that leads to the Wall Street Journal Article on U.S. Weatherization Assistance Program.
Better Home Heat Council concentrates on educating consumers about the economical and efficient use of oil heat. We also help consumers address energy efficiency issues within their homes. We support local oil companies of Lehigh Valley that provide a range of services and products. Click here to search for a home heating oil supplier in your area. Many of our oil dealers provide energy consultations for their customers.