Energy conservation - The transition

Energy conservation - The transition



For the past several years, all the debates and analyses related to the use of primary energies are influenced by a set of incontrovertible facts. They all lead to the same conclusion: "it is essential to rationalize the use of energy on a world-wide scale, in order to ensure the sustainable future of the species that inhabit the planet and of the corresponding biodiversity that supports them".

A transition to a sustainable energy system is necessary, also from “the economic point of view”, that guarantees the maintenance of our generation's and future generations' welfare, from a perspective of respecting the environment.

This transition requires significant effort in research, development and technological innovation, as well as greater social awareness of the energy problem. In the short and medium term, the objectives for implementing a sustainable energy system would include the application of measures such as:

· Encouraging energy saving and efficiency.

· Promoting renewable energy sources.

· The development of the necessary energy infrastructures to face the increase in consumption during this period of transition (gas-based infrastructures).

Homeowner’s Guide to Energy Audits

Homeowner’s Guide to Energy Audits

Simple steps you can take to lower your energy bills
With rising energy cost, and an unstable economy, an energy audit is something any homeowner should undergo
When most people hear the word “audit” they’re likely to break out in a cold sweat. But an energy audit is something any homeowner should happily undergo -- it will identify measures that will help lower your energy bills, make your home more comfortable and reduce your carbon footprint. Best of all, if you’re moderately handy, you can do the audit yourself. For the DIY-challenged, or for those wishing to go above and beyond the basics, there is the option of a professional audit. Before enlisting the services of a professional auditor, though, check with your utility or local government to see if they offer assistance for audits. A great source for further information on home audits is the U.S. Department of Energy’s Energy Efficiency and Renewable Energy Information Center. On this site you can also find a link to state and federal audit assistance programs. There are also a variety of tax credits available for improving your home's energy efficiency or adding renewable energy, some of which at the time of this writing are set to expire at the end of 2011.
Building envelope
The best place to start your audit is to locate areas where air leaks may occur by running your hand around doors, windows, baseboards and electrical outlets. If it’s not a windy day and you can’t locate any leaks, try pressurizing your home: close all windows, doors and flues and then turn on all your exhaust fans (typically in your bathrooms and kitchen).
Another trick is to hold a smoking incense stick near windows and doors to help indicate areas of leakage. A professional auditor will use a device called a blower door to pressurize the house and locate leaks.
Any gaps or areas of air leakage should be sealed with simple caulking or weather stripping available at hardware stores. Reducing drafts in a home can result in energy savings of 5 to 30 percent per year.
Just as important as controlling air leaks is ensuring your home is well insulated. Recommended insulation levels, or ‘R’ values, have been steadily increasing as concerns over fuel prices and environmental issues mount. Insulation is a relatively inexpensive product that can have a huge impact on your energy bills. Improve insulation in the easy-to-access areas first such as the attic floor between your basement and living space.
Many people are now insulating existing exterior walls by blowing in insulation. While this method can be effective it can also leave gaps -- do it only after sufficient insulation has been installed in the easy-to-reach parts of the house.
If your windows are single glazed (i.e., one pane of glass), consider retrofitting double-glazed windows. A double-glazed window can cut heat loss in half. The retrofit double-glazing market is fairly competitive and costs have come down in recent years. Be sure to investigate the quality of the company you choose and remember, not all windows have to be done at once.
An alternative to double-glazing is to install floor-length insulated curtains with pelmets.
A pelmet is a frame placed above a window that reduces convection currents across the window. Installing insulated curtains and pelmets can have almost the same impact as double-glazing, but they only work when they’re closed.
Hot Water Heating
Heating hot water can account for up to 25 percent of a home’s energy needs. The most significant savings usually come by switching to a more efficient system. But there are a number of other less expensive measures you can take to reduce water heating energy. Inspect the pipes around your tank and ensure they’re insulated and that the insulation is in good condition. If the tank is warm to the touch, purchase an insulating blanket to wrap around the tank or, better yet, replace the tank altogether. Set your water heater to 120ºF -- any higher is unnecessary and leads to even greater heat losses. Additionally, installing low-flow shower heads can significantly reduce a home’s hot water usage. If you’re considering replacing your hot water system, check out solar, heat pump or instantaneous hot water heating options. Selecting the best system will depend on your climate, how and when you use water, and the number of people in your home.
Heating Ventilation and Air Conditioning (HVAC)
An HVAC system typically represents a home's single largest source of energy use, representing over 50 percent of the total energy use in U.S. houses. Improving the thermal performance of your home (see above) is the single biggest opportunity to reduce HVAC energy use. Other measures you can take to reduce HVAC energy use include installing a programmable thermostat and fixing leaky ducts. If you have an old forced-air delivery system, it may be worthwhile to have your ducts examined by a professional. Options for new HVAC systems include heat pumps, geothermal (or ground source) heat pumps, condensing boilers and pellet fires, which burn compressed wood waste.
If you have a home that is constructed on a concrete slab you might consider replacing carpeting with tiles in rooms that receive direct sunlight. Doing so will help control overheating in the summer and provide free passive heating in the winter.
Lighting
Take a close look at the types of lights in your home. Consider replacing existing incandescent bulbs with compact fluorescents lights (CFLs). Compact fluorescents use approximately one-fifth the energy of a typical incandescent bulb and can last up to 10 times longer. They’re now available in a variety of shapes and sizes and can replace bulbs in almost any fixture. Compact fluorescents should be recycled or disposed of properly due to the small amount of mercury they contain.
Other alternatives to the incandescent bulb are light emitting diodes (LEDs) and halogen replacement bulbs. While LED technology has improved immensely over recent years for the most part LEDs will not yet produce the light levels of the bulbs they are designed to replace. However they are ideal for some applications and they can be used with a dimmable fixture unlike most CFLs. The downside to LED lights is their high initial cost. But when you factor in their longevity -- up to 50,000 hours – they’ll more than pay for themselves over their lifetime.
Appliances
In most homes the refrigerator is the single biggest plug load. To assess your fridge examine the door seals. If you can feel cold air leaking out it’s a good idea to replace them. Old refrigerators can be extremely inefficient. If your fridge is more than five to ten years old consider replacing it. A modern Energy Star refrigerator can use 40 percent less energy than a conventional model sold just seven years ago. And if you purchase a new fridge, resist the temptation to make your old fridge your new beer cooler.
Many modern appliances have a standby load. A standby load is the power drawn by microwaves, stereos, TVs, dishwashers and other appliances while they’re waiting to be used. While the power of any one of these appliances in standby mode is not significant, over a period of a year the cumulative energy from multiple appliances can add up. Consider unplugging appliances that are used infrequently to reduce standby power. Or plug appliances into a power board and turn off the power board when the appliance is not in use.
If you’re curious about how much energy your appliances are drawing, pick up a centameter. It’s a small device that provides a digital display of the power your house is drawing. Place one in a visible location and it’ll function as a great reminder to everyone in your home just how much energy you’re using.
Your first goal in a home energy audit is to pluck the low-hanging fruit. First tackle the measures that can be done easily and cheaply like draft-proofing and replacing the seals on your fridge. Next on your list should be those measures that will give you the greatest return on your investment, like improving insulation and replacing leaky ducting. Your last step should be those big-ticket items, like installing a new HVAC system or retrofitting double-glazed windows.
With winter fuel bills looming, a crawl through the basement might just be the ideal way to spend a Sunday afternoon.

8 cheap ways to make your home more energy-efficient
If you're dead-set on that charming but energy-inefficient house, here are some relatively inexpensive ways to whittle your energy bills after you move in.
Replace your refrigerator
This is one of the biggest energy-guzzling appliances in the house, says Lisa Dornan, spokeswoman for Direct Energy, and there have been big changes in the efficiency of this appliance over the last five years. "If you look back at the top-rated refrigerator in 2001 that was Energy Star, and one you'd buy today with an Energy Star rating, there would be a 20% to 40% difference in energy efficiency," she says. Her firm, Direct Energy, performs home energy audits and is an energy retailer. Replacing older dishwashers and dryers can make a big difference too, she adds.
Install a programmable thermostat and a timer for the water heater
Just as you would flip off the lights before heading out to work, you should turn the heating or cooling off or down while you're away. Program the thermostat for a higher temperature when you're gone in warmer months, or lower in cooler months. These thermostats can be had for $150 at big-box hardware stores.
Likewise, don't heat your water when you're not there to use it. "You definitely want to make sure you are not heating the whole tank needlessly," Dornan says.
Tankless water heaters can be a great investment too, she adds, but they may take a few years to pay for themselves.
Put a solar film or solar shades on the outside of windows to cut the heat
If you're moving into a house with single-paned windows, or living in a climate with extreme heat, you should consider putting something on the outside to reflect the light, Arizona home inspector Scott Hubbard says.
Don't let the heat escape
Also, caulk window and door frames to make sure they are airtight. And if possible, use honeycomb-type shades on the inside to trap the heat before it is absorbed into the room.
Use compact fluorescent bulbs or LED lighting
This is kind of a no-brainer, experts say, because it's so cheap to do and saves so much on your electricity bill. "Just for swapping out 10 light bulbs (in my home), I was able to get $400 a year in energy savings," Dornan says.
Change the filter on your air conditioner regularly
This monthly maintenance helps it run more efficiently, Dornan says, and minimizes wear and tear on your unit. Arranging furniture so it doesn't block air vents also is important to maximize the flow of cooling from your system.
Put in shady landscaping
Planting a tree or some vegetation outside a big window can shade your house from the strongest rays of the sun and stifle freezing winds. Planting low-water native plants can also cut your water bill, lowering the total cost you pay for you home each month. (See this slide show on 16 water-wise plants and read more about planning a drought-tolerant garden.)
Invest in an attic fan
These inexpensive fans can make a difference in the temperature of the whole house and keep your air conditioning from working so hard.
14 ways to lower your heating bill
Prices for heating oil and natural gas may have leveled off, but there are still some things you should do to cut your costs this winter.
There's good news and bad news if you're a homeowner who's bracing yourself for the annual rise in winter heating costs: The bill won't hurt more this year, but it won't hurt much less.
The Energy Information Administration forecasts that the average household heating fuel expenditures this winter will decrease to $928 per household, down from $947 last year. This is the first price drop since the winter of 2001-2002.
If you hope to save more than the projected $19, there are many steps you can take.
"There's a lot of things that the entrepreneurial homeowner can do, if he's a little bit handy," says John Ryan, team leader for commercial buildings for the Building Technologies Program in the Department of Energy's Office of Energy Efficiency and Renewable Energy, who has spent years thinking about efficiency in homes.
Here are more than a dozen simple steps you can take to slash your home's heating bill. Six steps cost nothing. Eight more cost under $100. Combine them, and you can often expect to save 20% — and possibly much, much more — on your home heating bill this winter. And some new federal tax breaks even sweeten the opportunity.
Grab that free, low-hanging fruit
First, the freebies. These strategies may sound simplistic, but they work well:
• Turn down the thermostat. "The rule of thumb is that you can save about 3% on your heating bill for every degree that you set back your thermostat" full time, says Bill Prindle, deputy director for the nonprofit American Council for an Energy-Efficient Economy (ACEEE). Turn down the thermostat 10 degrees when you go to work, and again when you go to bed -- a total of 16 hours a day -- and you can save about 14% on your heating bill, says Prindle.

• Use fans wisely. In just one hour, a hard-working bathroom or kitchen fan can expel a houseful of warm air, according to the Department of Energy. Turn them off as soon as they've done their job.

• Keep the fireplace damper closed. Heat rises, and an open damper is like a hole in the roof. Also, limit use of the fireplace, since fires actually suck heat from a room, says Harvey Sachs, director of ACEEE's buildings program. Close off seldom-used rooms. And shut the vents inside.

• Turn down the water heater. Lowering the temperature of water in the water heater to 115-120 degrees reduces power use often without a noticeable difference to the user, says Prindle.

• Keep heating vents clear. Vents blocked by rugs and furniture prevent heated air from circulating efficiently.

• Use curtains. Opening curtains and shades on south-facing windows during the day allows solar radiation to warm a living space; closing all curtains at night helps retard the escape of that heat.
Low-cost fixes
So you've put the easiest, and free, ideas to work. Now you can really make a dent in that heating bill with one cheap trip to a hardware store (Home Depot, for example, has all of the items below) and a few hours of work
Block that leak!
The small gaps surrounding windows, doors and other areas in the American house, taken together, are like a 9-square-foot hole in the wall, according to EarthWorks Group's "30 Simple Energy Things You Can Do to Save the Earth." Plugging them can save you up to 10% on that heating bill, and the materials will pay for themselves within a year, ACEEE says.
First, find the leaks: On a windy day, hold a lit incense stick to the most common drafty areas: chimney flashing, recessed lighting, sill plates, window and door frames, all ducts and flues and electrical outlets.
Buy door sweeps ($3-$10) to close spaces under exterior doors, and caulk ($2-$5 per roll, plus a $10 caulk gun) or tacky rope caulk to block those drafty spots around window frames. Apply weather-stripping ($3-$6 for up to 17 feet) to movable joints. Outlet gaskets ($10 for 10) can easily be installed in electrical outlets in a home's outer walls, where cold air often enters.
Keep your ducts in a row
A home that uses ductwork to move heated air can lose up to 60% of that air before it reaches the vents if the ducts are poorly connected, not well insulated and travel through unheated spaces such as the attic or crawlspace, says the government. "If you are a halfway savvy do-it-yourselfer, and your ductwork and heating and air-conditioning equipment are in the attic, you can do an awful lot to fix your system, at low cost," says Sachs.
First, look for obvious places in the attic, basement or in crawlspaces where ducts have become disconnected. Reconnect them, and fix places where pipes are pinched, which impedes flow of heated air to the house, says the Department of Energy's Ryan.
Fix remaining gaps with tape, but don't use traditional duct tape, which deteriorates; instead, use metal-backed tape ($6-$10 per roll) or aerosol sealant. Where possible, wrap the ducts' exterior with special duct insulation ($8-$12 for 15 feet). Though the cost will be substantially more, it's a good idea to get a professional to help insulate ducts when electrical wires or lighting fixtures are nearby.
Other tips:
• Swaddle water heater and pipes. Unless you've got a newer water heater that already has built-in insulation, covering your water heater with an insulated "jacket" ($17-$20) will keep costs down, especially if your heater is in an unheated place like a garage. Also, wrap water pipes ($1-$5 per 5-foot section) when possible, especially when they run through uninsulated areas.

• Winterize windows. If you can't afford storm windows, put plastic film on those windows ($6 covers three windows) where a clear view isn't crucial, which will curb drafts and keep windows from rattling.

• Buy a low-flow shower head. A water-efficient shower head (often less than $20) can use 25% to 50% less hot water, saving both on water and power bills, with little to no reduction in user satisfaction, says Prindle.

• Buy a smart thermostat. If you're the kind of person who forgets to turn the temperature down at night and before work, but who doesn't mind programming things like the TV remote control, a "smart" thermostat ($50-$100) can be set to change the temperature for you.

• Keep your furnace in shape. "It's amazing how often a heating or air conditioning unit stops working because a $3 or $15 air filter is clogged," says Sachs. Replace the air filter ($4-$16) according to manufacturer's directions and your heating system will operate more efficiently. Oil-fired boilers should be cleaned and tuned annually, and gas systems, every two years($100-$125). By maintaining your heating unit, you can save between 3% and 10% on heating bills, says ACEEE.

• Look for other insulation opportunities. Some well-placed insulation, especially in the attic of older homes, can save a bundle ($7-$16, in rolls from 22-32 feet, depending on insulation value).
First, however, Sachs recommends going into the attic and looking for black-stained areas on the edges of the fiberglass. That's dust, and it shows where air is flowing up out of the living space. Sealing that area first will do more good than simply piling on more insulation.
By following all of the aforementioned strategies, the owner of an older home can likely save much more than 20% on heating bills, he says.
Thinking big
So you've spent the minimum and will now save a noticeable chunk of money. What else can you do in the future? Replace appliances, heating units, light fixtures and bulbs with high-efficiency replacements.
It costs money to save money, however. While an adequate vinyl window might cost $100-$150, a double-paned window with a low e-rating (that's a good thing) can cost $50-$100 more, says Nevil Eastwood, director of construction and environmental resources for Habitat for Humanity International in Georgia. "That adds up when you've got 15 windows in your house," Eastwood acknowledges.
Many experts therefore recommend buying high-efficiency windows and appliances as their predecessors wear out and you need to replace them anyway. Over time, the extra cost is recouped in improved efficiency.
"If your furnace is over 20 years old, you're probably paying far more to use it," says Maria Vargas, spokeswoman for Energy Star, a federal-government-backed program that promotes energy efficiency and that lends its name to energy-saving products. Furnaces bearing the Energy Star label are about 15% more efficient than a standard conventional model, says Vargas.
A Chicago resident might pay an Energy Star premium of $1,400 or so on an average home furnace for that area, Vargas says, but the savings pay off the extra cost in three or four years.
Many utilities offer discounts or rebates on energy-saving products. Call and ask. Loans are also sometimes available for major improvements that will incorporate energy-efficient products or to purchase a high-efficiency home.
Thank you, Washington (sort of)
The Energy Policy Act of 2005 gives most of its $14.5 billion in tax breaks over the next 10 years to businesses, but it does throw a few bones to homeowners, says CCH Inc., a provider of tax and accounting information and software.
Homeowners who make energy-efficient improvements to existing homes can qualify for a 10% tax credit, up to $500. A credit is a dollar-for-dollar reduction in taxes, compared with a deduction, which only decreases taxable income. Improvements that can qualify include adding insulation, metal roofs coated with heat-reducing pigments, and energy-efficient windows, doors and skylights (though only $200 can come from windows).
Other items that meet certain criteria qualify for the credit with specific limitations, according to CCH: Advanced main air circulating fans can earn up to a $50 credit; some natural gas, propane or oil furnaces or hot water boilers are eligible for up to a $150 credit; and qualifying electric and geothermal heat pumps qualify for up to a $300 credit. The credits can be taken on 2006 and 2007 returns, but the total credits for the two years cannot exceed the $500 maximum, says CCH.
The act also gives homeowners a tax credit for 30% of the cost of buying and installing residential solar water heating and photovoltaic equipment, says CCH. The maximum credit is $2,000. Solar water heaters for swimming pools and hot tubs do not qualify. The credit, which expires at the end of 2007, also applies to homeowners who install fuel cells to supply electricity. The maximum credit is $500 for each 0.5 kilowatt of capacity.
Still need help?
If you're really in a pinch to pay that heating bill, some agencies and governments offer help.
10 Ways to Winterize your Home – Now
You'll get a season's worth of savings and peace of mind by taking a few steps in the fall to get your home ready for cold weather.
So you've pulled your sweaters out of mothballs and found your mittens at the bottom of the coat closet. But what about your house -- is it prepared for the cold months ahead?
You'll be a lot less comfortable in the coming months if you haven't girded Home Sweet Home for Old Man Winter.
With the help of several experts, we've boiled down your autumn to-do list to 10 easy tips:

1. Clean those gutters
Once the leaves fall, remove them and other debris from your home's gutters -- by hand, by scraper or spatula, and finally by a good hose rinse -- so that winter's rain and melting snow can drain. Clogged drains can form ice dams, in which water backs up, freezes and causes water to seep into the house, the Insurance Information Institute says.
As you're hosing out your gutters, look for leaks and misaligned pipes. Also, make sure the downspouts are carrying water away from the house's foundation, where it could cause flooding or other water damage.
"The rule of thumb is that water should be at least 10 feet away from the house," says Michael Broili, the director of the Well Home Program for the Phinney Neighborhood Association, a nationally recognized neighborhood group in Seattle.
2. Block those leaks
One of the best ways to winterize your home is to simply block obvious leaks around your house, both inside and out, experts say. The average American home has leaks that amount to a nine-square-foot hole in the wall, according to EarthWorks Group.
First, find the leaks: On a breezy day, walk around inside holding a lit incense stick to the most common drafty areas: recessed lighting, window and door frames, electrical outlets.
Then, buy door sweeps to close spaces under exterior doors, and caulk or apply tacky rope caulk to those drafty spots, says Danny Lipford, host of the nationally syndicated TV show "Today's Homeowner." Outlet gaskets can easily be installed in electrical outlets that share a home's outer walls, where cold air often enters.
Outside, seal leaks with weather-resistant caulk. For brick areas, use masonry sealer, which will better stand up to freezing and thawing. "Even if it's a small crack, it's worth sealing up," Lipford says. "It also discourages any insects from entering your home."
3. Insulate yourself
"Another thing that does cost a little money -- but boy, you do get the money back quick -- is adding insulation to the existing insulation in the attic," says Lipford. "Regardless of the climate conditions you live in, in the (U.S.) you need a minimum of 12 inches of insulation in your attic."
Don't clutter your brain with R-values or measuring tape, though. Here's Lipford's rule of thumb on whether you need to add insulation: "If you go into the attic and you can see the ceiling joists you know you don't have enough, because a ceiling joist is at most 10 or 11 inches."
A related tip: If you're layering insulation atop other insulation, don't use the kind that has "kraft face" finish (i.e., a paper backing). It acts as a vapor barrier, Lipford explains, and therefore can cause moisture problems in the insulation.
4. Check the furnace
First, turn your furnace on now, to make sure it's even working, before the coldest weather descends. A strong, odd, short-lasting smell is natural when firing up the furnace in the autumn; simply open windows to dissipate it. But if the smell lasts a long time, shut down the furnace and call a professional.
It's a good idea to have furnaces cleaned and tuned annually. Costs will often run about $100-$125. An inspector should do the following, among other things:
• Make sure that the thermostat and pilot light are working properly.
• Make sure that the fuel pipe entering your furnace doesn't have a leak.
• Check the heat exchanger for cracks -- a crack can send carbon monoxide into the home.
• Change the filter.
Throughout the winter you should change the furnace filters regularly (check them monthly). A dirty filter impedes air flow, reduces efficiency and could even cause a fire in an extreme case. Toss out the dirty fiberglass filters; reusable electrostatic or electronic filters can be washed.
5. Get your ducts in a row
According to the U.S. Department of Energy, a home with central heating can lose up to 60% of its heated air before that air reaches the vents if ductwork is not well-connected and insulated, or if it must travel through unheated spaces. That's a huge amount of wasted money, not to mention a chilly house. (Check out this audit tool for other ideas on how to save on your energy bills this winter.)
Ducts aren't always easy to see, but you can often find them exposed in the attic, the basement and crawlspaces. Repair places where pipes are pinched, which impedes flow of heated air to the house, and fix gaps with a metal-backed tape (duct tape actually doesn't stand up to the job over time).
Ducts also should be vacuumed once every few years, to clean out the abundant dust, animal hair and other gunk that can gather in them and cause respiratory problems.
6. Face your windows
Now, of course, is the time to take down the window screens and put up storm windows, which provide an extra layer of protection and warmth for the home. Storm windows are particularly helpful if you have old, single-pane glass windows. But if you don't have storm windows, and your windows are leaky or drafty, "They need to be updated to a more efficient window," says Lipford.
Of course, windows are pricey. Budget to replace them a few at a time, and in the meantime, buy a window insulator kit, Lipford and Broili recommend. Basically, the kit is plastic sheeting that's affixed to a window’s interior with double-stick tape. A hair dryer is then used to shrink-wrap the sheeting onto the window. (It can be removed in the spring.) "It's temporary and it's not pretty, but it's inexpensive (about $4 a window) and it's extremely effective," says Lipford.
7. Don't forget the chimney
Ideally, spring is the time to think about your chimney, because "chimney sweeps are going crazy right now, as you might have guessed," says Ashley Eldridge, director of education for the Chimney Safety Institute of America.
That said, don't put off your chimney needs before using your fireplace, Eldridge advises. "A common myth is that a chimney needs to be swept every year," says Eldridge. Not true. But a chimney should at least be inspected before use each year, he adds. "I've seen tennis balls and ducks in chimneys," he says.
Ask for a Level 1 inspection, in which the professional examines the readily accessible portions of the chimney, Eldridge says. "Most certified chimney sweeps include a Level 1 service with a sweep," he adds.
Woodstoves are a different beast, however, cautions Eldridge. They should be swept more than once a year. A general rule of thumb is that a cleaning should be performed for every ¼ inch of creosote, "anywhere that it's found." Why? "If it's ash, then it's primarily lye -- the same stuff that was once used to make soap, and it's very acidic." It can cause mortar and the metal damper to rot, Eldridge says.
Another tip: Buy a protective cap for your chimney, with a screen, advises Eldridge. "It's probably the single easiest protection" because it keeps out foreign objects (birds, tennis balls) as well as rain that can mix with the ash and eat away at the fireplace's walls. He advises buying based on durability, not appearance.
One other reminder: To keep out cold air, fireplace owners should keep their chimney's damper closed when the fireplace isn't in use. And for the same reason, woodstove owners should have glass doors on their stoves, and keep them closed when the stove isn't in use.
Check out CSIA'S Web site for a list of certified chimney sweeps in your area.
8. Reverse that fan
"Reversing your ceiling fan is a small tip that people don't often think of," says Lipford. By reversing its direction from the summer operation, the fan will push warm air downward and force it to recirculate, keeping you more comfortable. (Here's how you know the fan is ready for winter: As you look up, the blades should be turning clockwise, says Lipford.)
9. Wrap those pipes
A burst pipe caused by a winter freeze is a nightmare. Prevent it before Jack Frost sets his grip: Before freezing nights hit, make certain that the water to your hose bibs is shut off inside your house (via a turnoff valve), and that the lines are drained, says Broili. In climes such as Portland, Ore., or Seattle, where freezing nights aren't commonplace, you can install Styrofoam cups with a screw attachment to help insulate spigots, says Broili.
Next, go looking for other pipes that aren't insulated, or that pass through unheated spaces -- pipes that run through crawlspaces, basements or garages. Wrap them with pre-molded foam rubber sleeves or fiberglass insulation, available at hardware stores. If you're really worried about a pipe freezing, you can first wrap it with heating tape, which is basically an electrical cord that emits heat.
10. Finally, check those alarms
This is a great time to check the operation -- and change the batteries -- on your home's smoke detectors. Detectors should be replaced every 10 years, fire officials say. Test them -- older ones in particular -- with a small bit of actual smoke, and not just by pressing the "test" button. Check to see that your fire extinguisher is still where it should be, and still works.
Also, invest in a carbon-monoxide detector; every home should have at least one.

Livability and Sustainability Framework

Livability and Sustainability Framework

Many people talk about “going green,” but how do you actually make it happen? New solutions are popping up and it is difficult to sort through the many choices available. How do you know where to turn?

The answer is often found in your own community.

The Livability Project knows how to help community stakeholders figure out what they really want to achieve and then rally them around tangible goals on the path toward sustainability. We call our approach The Livability Framework. It’s a comprehensive way of thinking about sustainability issues, formulating a plan and then achieving your community’s goals. As a Livability Project client, we take you through each of the following twelve phases of the Livability Framework.


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Module 1. Assessing the Community

The Livability Framework starts with a Community Assessment process. This involves gathering information and analyzing the unique attributes, players and dynamics of your community. . This discovery process help you to create a plan specific to your community. Beyond identifying and recruiting champions, you will better understand your community around the following five key attributes: Leadership, Relationships, Assets, Gaps and Resources.


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Module 2. Envisioning the Future

From your work in Module 1, Assessing the Community, you will gain a better sense of where to best focus your efforts. This next step in the Livability Framework – Envisioning the Future – will help you to refine this nascent vision. You’ll form a mission with your group, develop a project action plan, create a brand and define expectations for the project.


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Module 3. Establishing a Sustainable Structure

Once you have completed Modules 1 and 2, you are ready to begin the process of establishing a sustainable structure, one that will enable your project goals to come to fruition and bring your community together.

This module will help you determine several operational issues such as: How will your initiative will be organized and structured? Who are the key leaders for the board and what should each contribute? What income streams are needed to sustain the organization and its programs? How can you ensure the mission is inclusive of all your different stakeholders?


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Module 4. Building Organizational Capacity

This module will take the intentions articulated in your planning work and bring much of it to reality through the creation of working groups and the launch of the community’s initiative. You will also learn techniques for managing and facilitating working groups and for developing strategic partners and in-kind service providers. We will also provide an introduction to the importance of a developing a relationship management system.


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Module 5. Developing a Green Action Plan

At this point in the process, you will have several ideas and programs ready to begin. This module will cover the development of a green action plan, which involves identifying existing products, programs and organizations; leveraging resources and partnerships, and getting started with the real work outlined in your livability initiative’s mission and vision statement. We will help you develop a variety of programs such as:

•Recycling programs
•Cooperative procurement or. group buying for local businesses
•Urban District-wide green certification and branding
•Create more walkable spaces
•Create a biodiesel or alternative energy program
•Establish an events and seminar series
•Create demand for home and business energy audits

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Module 6. Engaging the Entire Community

Now that your initiative is up and running, it’s time to reach out beyond your Board and volunteers to engage the entire community. This module will discuss general awareness building including public relations, competitions and events, as well as business and citizens outreach and partner and liaison programs.


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Module 7. Providing Education and Events

Education and Events are a key part of any community initiative’s mission. Events may include presentations by local experts and authors, movies, roundtable and panel discussions, workshops and ad hoc networking for community building. This module will also provide an overview of how to establish a speakers’ bureau and online education program and how to plan and manage events.


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Module 8. Generating Multiple Income Streams

The continued success of your local sustainability initiative will be highly dependent on generating ongoing revenue. In our experience, you will want to grow your organization to be as self-sufficient as possible. Because of our unique model leveraging local business, government, and citizens groups, each of these will have a stake in the outcomes of your initiative and thus will want to share in the success and excitement of the enterprise. Your initiative has the potential to become a hub of activity focused on local economic development. Therefore, we believe some or all of the following income streams will help defray the cost of operations and pay for the program:

•Sponsorship programs;
•Government, Corporate and Foundation grants;
•Affiliate and Partner programs;
•Event fees;
•Advertising; and
•More…

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Module 9. Creating an Online Presence

Your organization’s online presence is critical not only to its image, but to recruit volunteers and supporters and enable opportunities for others to share information and communicate. This module will cover:

•Building and maintaining your website;
•Distributing an e-newsletter;
•Pros and Cons of Blogging;
•Leveraging Social Media (FaceBook, MySpace, Linked-In, Twitter and More); and
•Online Mapping.

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Module 10. Forming a Livability Center

Online activities and community meetings are important, but integrating the vision and programs into the fabric of your community will be accelerated with the development of a Livability Center. Part Community Center, part Sustainability Education Center, part Green Jobs Incubator and local hang-out, a Livabilty Center is a place where people can connect to advance your initiative’s agenda. This module will cover issues such as financing and sponsorship models, build-out, launch, and operation.


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Module 11. Documenting and Measuring Feedback

With all of this activity, considerable progress will be made in achieving your livability project’s goals. This module will discuss how to measure effectiveness, update and monitor plans vs. progress, and share best practices.


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Module 12. Celebrating Successes

Some may be tempted to dismiss this module as just the “fun stuff.” While there is a lot of fun to be had in celebrating your successes, you need to understand how to do it appropriately and how to use these celebrations as a tool for building community spirit, pride, and soliciting more participation from stakeholders.. This module will cover tactics such as Annual Reports, Leadership Awards, Volunteer Rewards Programs, and Community Celebrations.

ENERGY EFFICIENCY

ENERGY EFFICIENCY

1. Energy Units
Energy Units and Conversions
A BTU (British Thermal Unit) is the amount of heat necessary to raise one pound of water by 1 degree Farenheit (F).
1 Joule (J) is the MKS unit of energy, equal to the force of one Newton acting through one meter.
1 British Thermal Unit (BTU) = 1055 J (The Mechanical Equivalent of Heat Relation)
Power = Current x Voltage (P = I V)
1 Watt is the power from a current of 1 Ampere flowing through 1 Volt.
1 kilowatt is a thousand Watts.
1 kilowatt-hour is the energy of one kilowatt power flowing for one hour. (E = P t).
1 kilowatt-hour (kWh) = 3.6 x 106 J = 3.6 million Joules
1 calorie of heat is the amount needed to raise 1 gram of water 1 degree Centigrade.
1 calorie (cal) = 4.184 J
(The Calories in food ratings are actually kilocalories.)
<>1 BTU = 252 cal = 1.055 kJ
1 Quad = 1015 BTU (World energy usage is about 300 Quads/year, US is about 100 Quads/year in 1996.)
1 therm = 100,000 BTU
1,000 kWh = 3.41 million BTU
Power Conversion
1 horsepower (hp) = 745.7 watts
Gas Volume to Energy Conversion
One thousand cubic feet of gas (Mcf) -> 1.027 million BTU = 1.083 billion J = 301 kWh
One therm = 100,000 BTU = 105.5 MJ = 29.3 kWh
1 Mcf -> 10.27 therms
Energy Content of Fuels
Coal 25 million BTU/ton
Crude Oil 5.6 million BTU/barrel
Oil 5.78 million BTU/barrel = 1700 kWh / barrel
Gasoline 5.6 million BTU/barrel (a barrel is 42 gallons) = 1.33 therms / gallon
Natural gas liquids 4.2 million BTU/barrel
Natural gas 1030 BTU/cubic foot
Wood 20 million BTU/cord
CO2 Pollution of Fossil Fuels
Pounds of CO2 per billion BTU of energy::
Coal 208,000 pounds
Oil 164,000 pounds
Natural Gas 117,000 pounds

Ratios of CO2 pollution:
Oil / Natural Gas = 1.40
Coal / Natural Gas = 1.78

Pounds of CO2 per 1,000 kWh:
Coal 709 pounds
Oil 559 pounds
Natural Gas 399 pounds


2. Economics of Energy

Energy Review Consultation Topics
_ Valuing Carbon
_ Saving Energy
_ Distributed Energy
_ Energy Security
_ Transport
_ Electricity Generation (Renewables Clean Coal and Nuclear )

Energy economics studies energy resources and energy commodities and includes: forces
motivating firms and consumers to supply, convert, transport, use energy resources, and to dispose of residuals; market structures and regulatory structures; distributional and environmental consequences; economically efficient use.
It recognizes: 1) energy is neither created nor destroyed but can be converted among forms; 2) energy comes from the physical environment and ultimately returns there. Humans harness energy conversion processes to provide energy services.
Energy demand is derived from preferences for energy services and depends on properties of conversion technologies and costs. Energy commodities are economic substitutes.
Energy resources are depletable or renewable and storable or non-storable. Human energy use is dominantly depletable resources, particularly fossil fuels. Market forces may guide a transition back to renewable resources. Inter-temporal optimal depletable resource extraction paths include an opportunity cost, or rent. World oil prices remain above pre-1973 levels and remain volatile as a result of OPEC market power. Oil supply disruptions of the 1970s led to economic harms.
Environmental damages from energy use include climate change from greenhouse gases, primarily carbon dioxide. Environmental costs not incorporated into energy prices (externalities) lead to overuse of energy and motivate policy interventions.
1 48 Economics of Energy
Energy economics is the field that studies human utilization of energy resources and energy commodities and the consequences of that utilization. In physical science terminology, “energy” is the capacity for doing work, e.g., lifting, accelerating, or heating material. In economic terminology, “energy” includes all energy commodities and energy resources, commodities or resources that embody significant amounts of physical energy and thus offer the ability to perform work. Energy commodities - e.g., gasoline, diesel fuel, natural gas, propane, coal, or electricity – can be used to provide energy services for human activities, such as lighting, space heating, water heating, cooking, motive power, electronic activity.
Energy resources - e.g., crude oil, natural gas, coal, biomass, hydro, uranium, wind, sunlight, or geothermal deposits – can be harvested to produce energy commodities.
Energy economics studies forces that lead economic agents – firms, individuals, governments – to supply energy resources, to convert those resources into other useful energy forms, to transport them to the users, to use them, and to dispose of the residuals. It studies roles of alternative market and regulatory structures on these activities, economic distributional impacts, and environmental consequences. It studies economically efficient provision and use of energy commodities and resources and factors that lead away from economic efficiency.
Properties of Energy Resources and Energy Commodities
2
Other than all embodying significant amounts of physical energy, energy resources or
commodities vary greatly. They may embody chemical energy (e.g., oil, natural gas, coal,
biomass), mechanical energy (e.g., wind, falling water), thermal energy (geothermal deposits), radiation (sunlight, infrared radiation), electrical energy (electricity), or the potential to create energy through nuclear reactions (uranium, plutonium.) They have differing physical forms.
Crude oil, most refined petroleum products, and water are liquids. Of water includes available energy only through its motion. Coal, most biomass, and uranium are solids. Natural gas and wind are in gases, with wind including available energy based only on its movement.
Geothermal energy is available through hot liquids (normally water) or solids (subterranean rock formations). Solar radiation is a pure form of energy. Electricity consists of electrons moving under an electrical potential.
Resources can be viewed as renewable or depletable. Some renewable resources can be
stored; others are not storable. These issues will be discussed more fully in a subsequent
section.
Table 1 summarizes the energy form, physical form, renewable/depletable distinction for
several common energy resources and commodities.
1. Energy Conversion Processes
3
A fundamental property of energy is expressed by the first law of thermodynamics: energy can be neither created nor destroyed (except through nuclear reactions transforming matter to energy.) Energy can be converted between forms and human use of energy typically involves such conversions for human ends.
Energy conversion processes are basic to human experience. Fire, providing heat and light, is a process by which chemical energy stored in the fuel, say, wood, is converted to thermal energy and radiant energy. Chemical energy stored in wood is the result of photosynthesis, whereby plants convert energy in sunlight to chemical energy, stored in the plant material.
Carbohydrates in food are converted within the human body to thermal energy and mechanical energy, providing body warmth and movement.
The industrial revolution was characterized by a change from use of hand tools, using human mechanical energy, to machine and power tools. Machine tools allowed conversion of energy in falling water to mechanical energy (water wheels) or conversion of chemical energy in wood or coal to mechanical energy (steam engines) for industrial processes.
Humans now routinely harness complex sequences of energy conversion processes to provide desired services. Crude oil is separated into refined products such as gasoline, diesel oil, jet fuel, heavy distillates, that embody chemical energy. Gasoline or diesel oil are explosively 4 burned in internal combustion engines, converting chemical energy into thermal energy.
Heated gases push engine pistons, converting thermal energy into mechanical energy. Some is lost as heated gases or as radiant energy. The mechanical energy moves the automobile and, in the process, is converted to thermal energy through friction within the automobile or between the automobile and the road or air. Some mechanical energy is converted to electrical energy by a generator in the automobile, to power electrical equipment. Some electrical energy is converted into chemical energy in the automobile battery. To start the car, chemical energy in the battery is converted to electrical energy, that is then converted to mechanical energy to turn the engine.
Similarly, coal combustion converts chemical energy into thermal energy to create steam,
which powers a turbine in an electric generating plant, converting the thermal energy into
mechanical energy and then into electrical energy. Electricity can power a motor (converting to mechanical energy), heat a room (to thermal energy), or light a bulb (to thermal energy, then to light). This energy is later converted to thermal energy, which ultimately is radiated into space.
Energy economics recognizes the fundamental physical realities that 1) no energy is created or destroyed but that energy can be converted among its various forms, and 2) energy comes from the physical environment and ultimately is released back into the physical environment.
Thus, energy economics is the study of human activities using energy resources from naturally 5 available forms, through often complex conversion processes, to forms providing energy services.
Several issues of the demand for energy will be examined next.
2. Demand for Energy as a Derived Demand
Demand for energy is derived from wishes to use energy to obtain desired services. It is not derived from preferences for the energy commodity itself. Energy demand depends primarily on demand for desired services, availability and properties of energy conversion technologies, and costs of energy and technologies used for conversion.
For example, consumers use gasoline to fuel an automobile or other motorized vehicle,
converting gasoline to mechanical energy for motive power. The amount of gasoline used is proportional to the miles the auto is driven and inversely proportionate to the efficiency by which gasoline is converted to useful mechanical energy, measured as miles per gallon (Mpg) of gasoline of the automobile. Demand for gasoline is thus derived from choices about distances vehicles are driven and their energy conversion efficiencies.
Similarly, electricity is purchased by consumers only to perform functions using electricity.
Typical electricity uses include lighting, refrigeration, space heating, air conditioning, clothes 6 washing, drying, dish washing, water heating, operating electronic equipment such as computers or televisions. Electrical energy is converted to mechanical energy (motors in refrigerators, air-conditioning units, vacuum cleaners), thermal energy (space heating, clothes dryers, water heating), or radiation (lighting, television, computer monitors.) Electricity demand is derived from demand for the underlying services – comfortable space, refrigeration, cleaning, entertainment, information processing.
In each case, efficiency of energy conversion equipment also determines energy demand.
Typically, energy conversion equipment is long-lived – automobiles, air-conditioning units, refrigerators, televisions, computer systems, furnaces. Consumers or firms can usually choose among alternatives with various conversion efficiencies; such choices significantly influence energy demand. To the extent that consumers and firms purchase these units with an understanding of their conversion efficiencies, expectations of future energy prices can influence choices of particular equipment. For example, high natural gas prices can motivate consumers to invest in home insulation.
In general, increased energy prices reduce demand by reducing use of energy services and motivating selection of higher conversion efficiency equipment. For example, gasoline prices influence demand through vehicle miles and fuel efficiency of vehicles. Vehicle miles is influenced by cost per mile of driving, including per mile gasoline costs, equal to the ratio Pg/Mpg (where Pg is the gasoline price), and other costs. Increased gasoline prices lead 7 consumers to purchase more fuel efficient cars. Both factors imply that increased gasoline prices reduce gasoline demand, with the vehicle miles adjusting relatively quickly and vehicular fuel efficiency adjusting slowly as vehicles enter the fleet.
Except for firms selling energy resources or energy commodities, the same issues are
important for industrial and commercial use of energy.
3. Demand Substitution Among Energy Commodities
Some energy services can be provided by several different energy commodities. Homes could be heated using electricity, natural gas, oil, or wood, since each can be converted to thermal energy. Cooking could use electricity, natural gas, propane, wood, or charcoal. Thus, energy commodities are typically economic substitutes for one another: the demand for a particular energy commodity is an increasing function of prices of other energy commodities.
This substitutability of energy is made possible by and is limited by the available set of energy conversion technologies. Typically one conversion technology can be used only for one particular energy commodity. For home heating, a natural gas furnace cannot use oil, electricity, or wood. Because conversion equipment typically is very long lived, substitution among energy commodities occurs only slowly, and then when new equipment is purchased.
Short-run substitution usually can occur only if several energy conversion technologies are 8 simultaneously available for use by particular consumers, e.g., homes that have a central natural gas heating system plus portable electric space heating units. Thus, usually various energy commodities can be viewed as imperfect substitutes for one another, with much greater substitutability in the long run than in the short run.
The degree of substitutability can be sharply altered by development of new conversion
alternatives. For example, automobiles historically were fueled only by gasoline or diesel fuel, but technologies currently being developed would allow autos to be powered by electricity, natural gas, propane, hydrogen, or other energy commodities. Once such conversion technologies are successfully commercialized, gasoline and other energy commodities will become highly substitutable in transportation.
4. Is Energy an Essential Good?
In economics, an essential good is one for which the demand remains positive no matter how high its price becomes. In the theoretical limit, for prices unboundedly high, consumers would allocate all of their income to purchases of the essential good.
Energy is often described as an essential good because human activity would be impossible absent use of energy: living requires food embodying chemical energy. Although energy is essential to humans, neither particular energy commodities nor any purchased energy 9 commodities are essential goods. Particular energy commodities are not essential because consumers can convert one form of energy into another. Even the aggregate of all purchased energy cannot be viewed as an essential good. Experience from low-energy research facilities shows that an extremely energy efficient home needs relatively little energy. Solar energy could generate electricity or heat water. Travel could be limited to walking or riding bicycles.
Solar-generated electricity or wood fires could be used for cooking. For high enough prices of purchased energy, demand for purchased energy by consumers could be reduced to zero.
Thus, purchased energy is not an essential good.
5. Optimality of Consumer Choice
Debate is ongoing about the extent to which consumers understand conversion efficiencies of alternative technologies and act on this understanding and the extent to which manufacturers of conversion equipment respond to consumer preferences. Labeling requirements have been one policy response to concerns that consumers otherwise would have insufficient information to choose among energy conversion equipment. New cars have stickers with estimates of their Mpg under different driving cycles. Refrigerator labels estimate their annual electricity use and cost. The concern has led to adoption of energy efficiency standards for household equipment, such as refrigerators, under the belief that labeling is not sufficient to motivate optimal consumer choices. Similarly, the imposition of corporate average fuel efficiency standards (CAFE) for automobiles is a legislative response to concern that, on their 10 own, automobile manufacturers will make automobiles less fuel efficient than optimal.
These behavioral issues and the appropriate policy responses have not been fully resolved in either the existing literature or the policy community.
Issues related to energy supply will be reviewed next.
6. Depletable, Storable Renewable, Non-storable Renewable Resources
Based on the speed of natural processes, one can classify primary energy resources as
depletable or renewable. Renewable resources can be further subdivided into storable or nonstorable resources. Renewable resources are self renewing within a time scale important for economic decision making. Storable renewable resources typically exist as a stock which can be used or can be stored. Biomass, hydro power, and some geothermal, fall in this category.
The amount used at one time influences the amount available in subsequent times. Nonstorable renewable resources – wind, solar radiation, run-of-the-river hydro resources can be used or not, but the quantity used at a given time has no direct influence on the quantity available subsequently. Most energy commodities are storable (refined petroleum products, processed natural gas, coal, batteries), but electricity is not storable as electricity. Depletable resources are those whose renewal speeds are so slow that it is appropriate to view them as made available once and only once by nature. Crude oil, natural gas, coal, and uranium all fall in this category. 11 Initially all human energy use depended on renewable resources, in particular biomass resources used for food, heat, or light. In the United States, renewable energy – human, animal, water, wood, and wind power – dominated energy supply through the middle of the 19th century. Only during the second half of the 19th century did a depletable resource, coal, surpass renewable resource use. Crude oil and natural gas started supplying large quantities of energy only in the 1920s.
Now the dominant use of energy in developed nations is based on depletable resources,
particularly fossil fuels. Table 2 shows that of the total sources of energy consumed in the
United States in 1999, 92% was from a depletable resource and only 8% was from a
renewable resource, of which almost all was hydroelectric and biomass (wood and waste.)
But depletable resource use cannot dominate forever. Once particular deposits have been
used, they cannot be reused. Therefore, a future transition from depletable resources,
particularly from fossil fuels, is inevitable. However, which renewable energy sources will dominate future consumption is not clear. And there is great uncertainty about the timing of a shift to renewable energy resources. Related is the unresolved question of future energy adequacy: will the renewable sources of energy be adequate to satisfy demands for energy, once the fossil fuel supplies move close to ultimate depletion? These issues will be examined further in the next section. 12
7. Depletable Resource Economics and the Transition to Renewable Resources
The study of depletable resource economics began with articles by Lewis Grey (1914) and Harold Hotelling (1931), which examined economically inter-temporal optimal extraction from a perfectly known stock of the resource, with perfectly predictable future prices of the extracted commodity. Many, but not all, subsequent articles maintained the perfect knowledge assumptions.
The essential result is that under optimal extraction paths the resource owner recognizes
(explicitly or implicitly) an opportunity cost, or rent, in addition to the marginal extraction costs. All information about the role of future prices and costs would be embodied in this opportunity cost. The competitive firm would extract at a rate such that the marginal extraction cost plus opportunity cost would equal the selling price for the extracted commodity. Price would thus exceed marginal cost, even if the firm were operating perfectly competitively.
This opportunity cost would evolve smoothly over time. As the resource neared depletion, the opportunity cost and the marginal extraction cost even at very low
extraction rates would together have increased until they equaled the commodity price, at
which time extraction would cease.
In depletable resource theory, market prices would increase gradually to the cost of producing substitutes, reaching that cost only as the depletable resource were nearing depletion. 13 Substitutes would be produced only in small quantities until near the time of depletion.
Market forces would automatically and optimally guide commodity prices upward so that
when the depletable resources were nearing depletion, commodity prices would have risen to a point at which the demands could be fully satisfied by the substitutes.
In reality, the economic cycle for depletable resources is far more complex and more prone to error and surprises. The cycle typically begins with innovations that allow the resource to be utilized. Technologies improve over time, partially guided by economic forces and public policy decisions, but often in somewhat unpredictable ways. Generally the magnitude and location of the resource base remains unknown and exploration is required to identify resource deposits. But exploration is costly. Therefore typically it is optimal for companies to explore only until they find sufficient resources to satisfy their expectations of near-term extraction.
These discovered resources – referred to as “reserves” – are typically only a fraction of the resource base and do not provide reliable estimates of the overall size of the resource stock.
Firms may optimally extract from the proven reserves but cannot know with any certainty the quantity or extraction costs of the undiscovered resources. Opportunity cost would depend on the future prices of the extracted commodity, but future commodity prices will themselves depend on future demand and supply, which in turn depends on the uncertain future discoveries, and which therefore are very unpredictable. 14 With this additional complexity and uncertainty, although the opportunity cost concept remains important, it seems appropriate to focus more attention on responses of markets to random changes in technologies, reserves, and other market information. And it seems appropriate to abandon the notion that markets will automatically and optimally guide the system to a smooth transition to renewable resources.
One central result does remain, however. If there is only a limited stock of a resource –
undiscovered plus discovered – then there will be only a limited number of years during which the resource can be extracted. Here there is an important commonality between energy economics and ecological economics (see article on ecological economics). The typical pattern includes an initial period in which the resource is not used, before technology for extracting and/or using the resource is developed. Extraction rates rise over time, perhaps rapidly, as that technology develops and demand increases. Commodity prices would fall with falling extraction and finding costs. However, at some time, rising costs due to depletion of the resource start overtaking the decreasing costs due to technology advances. The extraction rate declines until ultimately all of the economical resource stocks are depleted. At that point, the consumers of the depletable resource must substitute some other means of satisfying energy service demand.
If markets work well, the renewable resources will then be available in sufficient quantities and at reasonable costs. A transition to renewable energy resources will have been successfully 15 accomplished and there would always be an adequate energy supply to satisfy all demands at the prevailing market price.
However, given the complexity and the uncertainty, it is not obvious that the transition will work as automatically, as smoothly, or as optimally as suggested above. It may be that fossil fuels saved for the future will ultimately never be needed because substitute forms of energy become available at a lower cost and at an earlier time than expected. Or it may be that fossil fuels are rapidly depleted but that costs of renewable resources remain well above expected levels or that quantities of renewable resources are more limited than expected. In either case, in retrospect everyone might wish to have made very different public policy decisions.
8. World Oil Prices
In 1973, energy markets were disrupted when war broke out between Israel and neighboring nations. Oil supply was reduced by some member nations of the Organization of Petroleum Exporting Countries (OPEC). At that time there was relatively little excess worldwide oil extraction capacity. Consumers and producers expected further disruptions. Therefore the supply reductions led to disproportionately sharp increases in the world price of oil, increases that remained well after the war. Another price increase occurred in 1979. The price of Saudi Arabian light jumped from $2.10 per barrel (/bbl) at the beginning of year (BOY) 1973 to $9.60/bbl at BOY 1974. The BOY 1979 price of $13.34/bbl was followed by a BOY 1980 price of $26.00 per barrel. Not until 1986 did prices drop to levels consistent with the current 16 levels. Prices are well above the pre-1973 levels, even when adjusted for inflation, and remain very volatile. Figure 1 shows these BOY annual prices in nominal dollars and in 1996 dollars, adjusted using the US implicit GNP price deflator.
Many explanations have been offered for the persistence of the world price increases,
including assertions that they simply reflected a realization oil resources were being depleted, that they reflected only random movements, and that they reflect independent choices by various nations attempting to satisfy developmental goals. The most obvious explanation, that they reflect collusive exercise of market power by OPEC members, is the best supported by economic data.
These sudden jumps in oil prices led directly to a wide range of economic impacts and
indirectly to impacts through governmental programs responding to the perceived crisis.
Worldwide recessions followed both price jumps, partly caused by direct disruptions to
industry, partly by reductions in real income of oil importing countries, and partly by tight monetary policies imposed to decrease oil-market-induced inflation. Price and allocation controls were placed on refined petroleum products in the US, resulting in widespread shortages, manifested by long gasoline lines. And prices of other energy resources and commodities increased significantly in response to the oil price increases.
17 The oil price increases and ensuing economic problems led to profound changes in energy policy and energy markets world wide. For example, in the US, President Nixon declared “Project Independence” to reduce sharply US dependence on imported oil. Oil exploration and development increased extraction capacity throughout the non-OPEC nations, particularly in the North Sea (Norway and United Kingdom), China, and Mexico. Energy “conservation” programs were enacted to reduce energy demand, particularly oil. For example, corporate average fuel efficiency standards (CAFE) were imposed on the US automobile industry. Public and private sector investments in renewable energy R&D
increased sharply, with emphasis on solar, wind, geothermal, and hydro power. New national and international organizations were created: e.g., the International Energy Agency (IEA) in Paris, the US Department of Energy. Programs were initiated to reduce economic impacts of oil disruptions: the US government purchased large quantities of crude oil for storage underground; oil importing nations agreed to IAE-monitored minimum levels of oil storage.
Although some changes have been reversed – e.g., investment in energy R&D has declined since 1986 – oil policies, particularly for oil importing nations, still are shaped by these profound changes in the world oil price.
9. Energy Conversion Industries
18 In addition are activities associated with commercial conversion of energy from one form to another, particularly to electricity, from hydro power, coal, natural gas, oil, nuclear fission, wood and waste products, geothermal, wind, or solar radiation.
Energy conversion industries, for economic success, must be able to sell their product at a
price higher than the cost of energy commodities used as inputs plus per unit capital and
operating costs of the facilities. Energy conversion is never perfectly efficient and some input energy is lost into the environment. Therefore, the price per Btu of electricity must be substantially greater than the price of energy commodities used to generate electricity.
Technological advance can be very important. New technologies are becoming available that increase the conversion efficiency from natural gas or coal to electricity and which can be expected to have lower operating and capital costs. Such technological advances can be expected to bring prices of these energy commodities closer together over time.
In addition to these technological changes, there are important ongoing changes in economic structure of the electricity production and distribution industry, throughout the world.
In many countries, state-owned industries generate, transmit, and distribute electricity. In
others, private electricity suppliers are subject to special economic regulation. The reason for governmental ownership or control seems to stem from two factors. Electricity is
19 fundamental to economic activity and many people have not trusted private industry. Second, production, transmission, and distribution of electricity have shown significant increasing returns to scale and the industry has been viewed as a natural monopoly. Fearful that an unregulated monopoly would exercise market power and overprice electricity, most nations have chosen to tightly control or own the industry.
Recently, however, smaller geographically distributed electric generating plants, that could reasonably compete with one another, have become economically attractive. Thus, the possibility for competition in electricity generation has been recognized. In addition, it is now realized that an electric utility sells two classes of products: electricity delivery services (wires) and electricity. Although these two classes of products traditionally were bundled together into a price per kilowatt hour of electricity, in principle, these two classes could be unbundled and sold by separate companies. Electricity delivery service is characterized by increasing returns to scale, but electricity itself is not. Therefore the possibility is open for a competitive market structure to sell electricity to consumers, separately from the electricity delivery services.
In some localities this movement toward privatization and deregulation seems to be very
successful; in others, for example, California, it has not been. At the time of this writing, there is an intense heated debate about whether deregulation of the electricity industry is
appropriate and if so, what is the appropriate form of deregulation. 20
10. Environmental Consequences of Energy Use
Many important environmental damages stem from the production, conversion, and
consumption of energy. Costs of these environmental damages generally are not incorporated into prices for energy commodities and resources; this omission leads to overuse of energy.
Concern about this issue is common to energy economics, environmental economics (see
environmental economics entry), and ecological economics (see ecological economics entry), with energy economics and environmental economics literature attempting to assign monetary valuation of the impacts and ecological economics rejecting the idea that a monetary value could be placed on environmental impacts.
Environmental impacts currently receiving most attention are associated with the release of greenhouse gases into the atmosphere, primarily carbon dioxide, from combustion of fossil fuels. The three primary fossil fuels – coal, petroleum, and natural gas – each include carbon.
During combustion, carbon combines with oxygen to produce carbon dioxide, the primary greenhouse gas. Carbon dioxide accumulates in the atmosphere and is expected to result in significant detrimental impacts on the world’s climate, including global warming, rises in the ocean levels, increased intensity of tropical storms, and losses in biodiversity. Fossil fuels account for 98% of the US carbon dioxide net releases into the atmosphere and 82% of the releases of greenhouse gases, measured on a carbon equivalent basis. 21 Energy use leads to additional environmental damages. Coal combustion, particularly high sulfur coal combustion, emits oxides of sulfur, which, through atmospheric chemical reactions, result in acid rain. Automobile gasoline combustion releases oxides of nitrogen and volatile organic compounds, which, in the presence of sunlight, result in smog. Electric generating facilities often use much water for cooling and release the heated water into lakes or oceans, leading to local impacts on the ecosystem. Extraction of oil or mining of coal can lead to subsidence of the land overlying of the extracted deposits.
Pervasive environmental impacts of energy use, absent governmental intervention, imply that significant costs of energy use are not included in the price energy users face. These so-called externalities (see environmental economics entry) lead to overuse of energy and provide strong motivation for interventions designed to reduce energy use.

Table 1
Physical Properties of Common Energy Resources and Commodities
Resource/Commodity
Energy Form
Physical Form Time Scale
Crude Oil Chemical Liquid Depletable resource
Refined Petroleum Products
Chemical Liquid Storable commodity
Natural Gas Chemical Gas Depletable resource
Processed Natural Gas
Chemical Gas Storable commodity
Coal Chemical Solid Depletable resource; storable commodity
Trees/ biomass Chemical Solid Renewable, Storable resource
Battery Chemical Solid Storable commodity
Electricity Electrical Moving Electrons
Non storable commodity
Wind Mechanical Moving gas Renewable, Non storable resource
Hydro Mechanical Moving liquid Renewable, Storable resource
Geothermal Thermal Solid or Liquid
Renewable or Depletable resource
Uranium Nuclear Solid Depletable resource
Solar Radiation Radiation Pure energy Renewable: Non storable resource 27
Table 2
US Energy Supply (Domestic plus Imports)
Sources of Energy Consumed in the US: 1999 (Quadrillion BTU)
Depletable Resources Renewable Resources
Coal 21.8 Hydroelectric Power 3.4
Natural Gas 22.1 Wood and Waste 3.5
Petroleum: Domestically Produced 15.2 Geothermal 0.3
Petroleum: Imported 22.5 Wind 0.04
Nuclear 7.7 Solar 0.08
Total Depletable Resources 89.3 Total Renewable Resources 7.4
Source. Annual Energy Review, 1999; Energy Information Administration 28

We must become independent — not just of imported oil, but of oil itself.

We must become independent — not just of imported oil, but of oil itself.

A determined pack has begun to race its engines and to try to shoulder us off the road toward energy independence. It’s time for those determined to stay on the track to drive aggressively.
The energy-independence question is really about oil — the rest of U.S. energy use presents important issues, but not the danger of our being subject to the control of nations that “do not particularly like us,” as the president put it. Some of the engine racers have an economic interest in keeping our transportation system 97-percent oil-dependent. Less understandable are the authors of a recent Council on Foreign Relations report accusing those working for such independence of “doing the nation a disservice.”
The authors of that report and their followers define “independence,” contrary to both Webster’s and common sense, as essentially “autarky” — i.e. complete self-sufficiency, or not importing oil even though we remain dependent on it. Such a Pickwickian definition captures none of the thinking of serious advocates of reducing our oil dependence: The point of independence is not to be an economic hermit, but rather to be a free actor.
It is true that some who promote oil independence spice their remarks by implying that we might substitute oil from domestic sources or from our near neighbors for cheap Middle Eastern imports, and somehow manage to insulate ourselves from the world oil market.
But speechwriters’ tropes shouldn’t be taken as serious policy proposals. Geology will not cooperate in any such fantasy. There is no reasonable way that we can leave oil in place as the near-exclusive fuel for the world’s transportation systems and simultaneously wall ourselves off from the world oil market. If we want to end dependence on the whims of OPEC’s despots, the substantial instabilities of the Middle East, and the indignity of paying for both sides in the War on Terror, we must define oil “independence” sensibly — as doing whatever is necessary to avoid oil’s being the instrument of despotic leverage and foreign chaos.
Those who won our independence as a nation didn’t just fling imported tea into Boston harbor — they did whatever was necessary to wrest themselves from British control. We need not call out the Minutemen, but to avoid the consequences of dependence we must become independent — not just of imported oil, but of oil itself.
Does this mean that we cannot use oil or import any? Of course not. Oil is a useful commodity that can readily transport energy long distances. It already has competition from natural gas in industry and from gas and electricity for heating. But in transportation it brooks no competition — it is thus not just a commodity but a strategic commodity. Oil’s monopoly on transportation gives intolerable power to OPEC and the nations that dominate oil ownership and production. This monopoly must be broken. To tell us that in following this path we are doing a “disservice to the nation” and should resign ourselves to oil dependence is like telling us we should not urge an alcoholic to stop drinking, but should rather impress upon him the health advantages of red wine.
Not long ago, technology broke the power of another strategic commodity. Until around the end of the nineteenth century salt had such a position because it was the only means of preserving meat. Odd as it seems today, salt mines conferred national power and wars were even fought over control of them.
Today, no nation sways history because it has salt mines. Salt is still a useful commodity for a range of purposes. We import some salt, so if one defines independence as autarky we are not “salt independent”. But to most of us there is no “salt dependence” problem at all — because electricity and refrigeration decisively ended salt’s monopoly of meat preservation, and thus its strategic importance.
We can and must do the same thing to oil. By moving toward utilizing the batteries that have been developed for modern electronics we can rather soon have “plug-in hybrids” that travel 20-40 miles on an inexpensive charge of night-time off-peak electricity at a small fraction of gasoline’s cost. (After driving that distance plug-ins keep going as ordinary hybrids.) Dozens of ordinary hybrids converted to plug-ins now on the road are getting in the range of 100 mpg of gasoline. And millions of flexible-fuel vehicles are also now in the fleet. Producing them adds costs well under $100 and they can use up to 85-percent ethanol (before long to be made from biomass rather than corn) — methanol, butanol, and other alternative fuels produced from grasses and even waste.
A flex-fuel plug-in hybrid that gets 100 mpg and, when it needs liquid fuel, uses only 15-percent gasoline, is approaching a utility of 500 mpg. Other oil-breaking technologies are coming. When Cornwallis surrendered at Yorktown, the newly-independent Americans asked their band to play “The World Turned Upside Down.” Get ready for a reprise.

Sustainability & Energy Independence

Sustainability & Energy Independence

For the benefit of mankind, in order to maintain the quality of life and preserve the tranquility of world population. Water resources must be preserved to sustain humanity. We should utilize solar and or other source of renewable energy to operate desalinization projects from the oceans. As world population increases the scarcity of water will become a cause for conflict, unless we take steps now to develop other sources of water for drinking, rainwater harvesting and gray-water utilization.
To preserve the future generations sustainability, we should look into urban farming – vertical farming. The term "urban farming" may conjure up a community garden where locals grow a few heads of lettuce. But some academics envision something quite different for the increasingly hungry world of the 21st century: a vertical farm that will do for agriculture what the skyscraper did for office space. Greenhouse giant: By stacking floors full of produce, a vertical farm could rake in $18 million a year. This concept will save on transportation costs will absorb and reduce some of the pollution. As we all see, today’s natural disasters and conflicts affect the costs of energy and the supply of goods needed to complete production for various industries.
“Energy is vital to every sector of the U.S. economy. As our economy and population grows the demand for energy rises”.
I believe what America needs are cool headed government leaders who understand how markets function and can work with consumers, labor and oil industry leaders to develop a viable energy strategy that will help and not hinder as our nation transitions to our new energy reality.
For German Homeowners Renewable Energy is No Longer a Choice
All new homes built in Germany from January 1st 2009 will be required to install renewable energy heating systems under a new law called the Renewable Energies Heating Law
“It is cheaper to save energy than make energy”

"To succeed, you have to believe in something with such a passion that it becomes a reality."

YJ Draiman, Energy/Utility Auditor/Consultant
Northridge, CA. 91324
March 31, 2011

P.S. I have a very deep belief in America's capabilities. Within the next 10 years we can accomplish our energy independence, if we as a nation truly set our goals to accomplish this.

I happen to believe that we can do it. In another crisis--the one in 1942--President Franklin D. Roosevelt said this country would build 60,000 [50,000] military aircraft. By 1943, production in that program had reached 125,000 aircraft annually. They did it then. We can do it now.

To expedite and accomplish our energy independence and economic growth. (This will also create a substantial amount of new jobs). It will take maximum effort and a relentless pursuit of the private, commercial, industrial and government sectors’ commitment to renewable energy – energy generation (wind, solar, hydro, biofuels, geothermal, energy storage, waste to energy, etc. (fuel cells, advance batteries), energy infrastructure (management, transmission) and energy efficiency (lighting, sensors, automation, conservation) (rainwater harvesting, gray-water water conservation) (energy and natural resources conservation) in order to achieve our energy independence.

"The way we produce and use energy must fundamentally change."

Sustainability - "We do not inherit the land from our ancestors; we borrow it from our children" - Native American Proverb

The American people resilience and determination to retain the way of life is unconquerable and we as a nation will succeed in this endeavor of Energy Independence.

YJ Draiman, Energy/Utility Auditor/Consultant
Northridge, CA. 91324

Sustainability advocacy

Sustainability advocacy

A few Tried and True Strategies for Inspiring Environmental change
Many business leaders find it challenging to lead others on the path to sustainability - and not necessarily because they’re working with a tough audience (although that happens too). Rather the trouble lies in their inability to communicate in way that generates real-world action and measurable results. But certain individuals seem to have cracked the code - they’ve figured out how to turn environmental conversations into sustainable changes for their companies, and for the environment. What exactly are these leaders doing differently, and how can we learn from them?
Principle I: Emphasize the business necessity.
Aspiring change leaders must have their heads wrapped firmly around the financial implications of their pet environmental initiatives. Environmental strategy consultant believes that creating a compelling business need is by far the most critical factor for getting decision makers on board with green initiatives. The good news for aspiring sustainability leaders is that the case for business necessity is getting easier to make with every passing day.
“Customers are asking questions about environmental performance,” and “Companies like Wal-Mart will give more shelf space to those companies that can reduce their footprint. Employees demanding more from companies they work for is another clear force that creates a compelling business need - it’s tough enough to compete for the best talent without turning them off on values-driven and environmental issues.”
The take-home? When seeking to serve the sometimes elusive triple bottom line, make sure you start with the bottom-line that decision makers value most- cold, hard cash. This topic is sure to get them listening.
Principle II: Frame environmental goals in terms of the other’s self interest.
With work demands and obligations bombarding them at every possible moment, how can we get organizational leaders to make our green initiative a priority? Here’s the secret of all motivational conversationalists: Take the perspective of the person you are speaking to and frame your agenda so that it occurs to other person as highly relevant to their own personal goals.
Of course, to accomplish this requires that we do a minimal amount of homework to learn more about our audience. What are their goals? How do these goals relate to our proposal? What do they have to gain by our success? This may seem like a lot to think through up front, but if we are willing to make a habit of this sort of analysis our persuasive abilities will skyrocket.
A good example comes from environmental initiatives for one company. Which has a distinguished track record of leading change in the organization and attributes much of the success to this simple habit? “There are multiple benefits to all environmental initiatives, so the language we use to impart the message has to mirror that diversity,” “For example, if I’m promoting an energy conservation initiative such as a lighting retrofit for the facilities, I will need to alter my message based upon my audience. I need to address the financial savings on our utility bill to the finance folks, the labor and maintenance benefits to the technicians in the field, and the quality of light with clients or tenants of the facility.”
Principle III: Appeal to enlightened self-interest.
Once you’ve framed your proposal in terms of ever-pressing financial imperatives and the other person’s self-interest, feel free invoke the “better angels” of your audience’s nature. Invite them to see how jumping on board with your initiative will also serve the more high-minded planetary and humanistic bottom-lines. Sometimes the best way to do this is directly, by discussing the positive global impact that your green proposal will create in terms of waste and greenhouse gas reduction. Other times it may be preferable to first be discreet, seeking topics that evoke in your audience a feeling of selflessness and a desire to contribute.
Creating rapport through meaningful conversations. “A great tactic is to look around and find something that the person you’re talking to really cares about. I’ve found that a universally powerful topic is children. If you can get people take a second to think about their children, and the effect that their choices might have on them, they seem to open up and be much more willing to consider higher causes like the environment.” Whatever your angle, remember that - beneath the cynicism and chaos - people want to do the right thing. You are, in fact, giving them a fresh opportunity to do just this.
Principle IV: Use humor to melt defensiveness.
Unfortunately, for most people there is still a huge gap between environmental awareness and environmental action. This gap often causes them to feel slightly guilty and defensive when the topic of saving the environment is even raised. If we don’t overcome it, this subtle mental block can make our audience unreceptive and make our words more likely to fall upon deaf ears. What are we to do? How can we get past this mental filter and raise our audiences to consider new possibilities? One strong approach is with humor.
One company has turned the tactic of using humor to overcome environmental guilt into an art by designing a stylish faux legal contract called an “Environmental Guilt Waiver.” This contract bestows clients and friends with a “24-hour exemption from all existential torment in connection with the environmental crisis” for making simple positive environmental choices in their daily life. The result? After receiving the waiver, clients who might normally be resistant to discussing the environment open up more easily and take a more active interest in the topic. “Making people feel guilty doesn’t help the environment,” “People want to have fun and be part of the solution. We’re doing what we can to make saving the planet a more pleasant experience!”
Principle V: Paint an inspiring vision.
John F. Kennedy gave us the image of a man on the moon. These world leaders knew that all great accomplishments start out as little more than compelling images that capture our imagination. Granted, few people will ever reach the heights of power and influence that these historical figures attained, but each of us can nonetheless draw from that same well of wisdom when we seek to cause changes in our own work-life sphere.
Want to be a true visionary? Simply do this: envision the end result that you are seeking to cause for your organization and help others see it too. Make it vivid, make it compelling, make it believable and make it personal. What are the implications for your audience of this goal coming to fruition? How will their life - and the life of their organization - be changed as a result of small efforts made today? If you can get others in your organization to use their imagination to experience your environmental proposal in this way, you will generate astounding levels of motivation for your cause.
Principle VI: Stick with it.
Rome wasn’t built in a day, and neither were our current environmental challenges. As you do your part to reinvent the wheel in a new shade of green, remember to be patient and - even more importantly - be persistent. No matter how eloquent, business savvy and sincere we may be, sometimes the only way to get through to people is with good old-fashioned repetition. Allow yourself to be the squeaky (green) wheel that gets the grease!
Someone once remarked that breaking up with someone is a lot like trying to tip over a refrigerator…you have to rock it a few times before it actually topples over. Getting people to change their environmental thinking and behaviors is the same way. So stick with it. Be persistent. After all, how much does environmental change really matter to you? Are you in it to win a popular contest or to do the right thing? Are you willing to continually raise the issues that matter to you most, even when those around you don’t seem interested? If so, you are a true leader, and success is only a matter of time.

Compiled by: YJay Draiman