Energy inefficiency in the U.S. economy: A new case for conservation

It is argued that the U.S. is much less efficient at converting energy into useful final goods and services than has generally been assumed. Defining efficiency as the ratio of theoretical minimum energy consumption to actual energy consumption, for essentially the same mix of goods and services we have now, the current level of energy efficiency for the U.S. is about 2.5% plus or minus 1%. This implies that energy efficiency for the nation as a whole could be increased tenfold without exceeding efficiency levels currently claimed for internal combustion engines. Conversely, it means that GNP could increase by a factor of ten without using more energy than the U.S. now consumes. It also implies that a sufficiently strong combination of policies to encourage energy conservation technology worldwide would permit accelerated economic development in the third world without further global environmental degradation.