Economic Growth Decouples From Energy Consumption

Think Progress: “In a stunning trend with broad implications, the U.S. economy has grown significantly since 2007, while electricity consumption has been flat, and total energy demand actually dropped.

“The U.S. economy has now grown by 10% since 2007, while primary energy consumption has fallen by 2.4%,” reports Bloomberg New Energy Finance (BNEF) in its newly-released 2016 Sustainable Energy in America Factbook.”

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“The decoupling of GDP growth from energy and electricity consumption has been a key reason the United States has been able to reduce its overall greenhouse gas emissions since 2005. In particular, flat electricity demand has meant that the explosive growth in renewables and natural gas power has come directly at the expense of dirty coal.”

“The key driver of the decoupling of electricity use and GDP growth is energy efficiency policy and investment. BNEF notes that in 2014 (the most recent year we have data for), ‘Natural gas and electric utility spending on efficiency reached $6.7bn, up 8.1% from the $6.2bn seen in 2013; Energy Savings Performance Contracting (ESPC) investment topped $6.4bn.’ The ESPC funding is generally distinct from the utility funding and ‘mainly focused on public buildings.’”

“Largely unheralded, ‘The key policy story of the past decade has been the uptake of EERS [Energy Efficiency Resource Standards] in US state targets and decoupling legislation among US states.'”

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