Does subsidizing energy reduce the incentive to economize?

” Worldwide, the amount of energy employed to produce a unit of gross domestic product fell by 0.4 percent a year from 2000 to 2010, according to theInternational Energy Agency. Last year and the year before, the annual declineaccelerated to 1.5 percent. Looking ahead 20 years, though, the IEA (in effect, a club of energy ministers) estimates that two-thirds of the potential for energy efficiency will remain unexploited.”— Bloomberg News

 

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Would greater use of information-based programs and social networking help with energy-related decisions?

Reducing waste in energy consumption: Do flawed models equal sub-par results? “One of the most important omissions from our models is time, as a scarcity factor entering into the economic decisions of both energy suppliers and consumers. In advanced wealthy economies, time is often the most binding constraint on decision-making, not income or wealth, around which most of our economic models are designed. Time scarcity can create binding constraints on both households and businesses in many energy-related decisions, even when energy efficient products and services may be available in the marketplace, often at competitive prices.