1. Introduction
Measuring Energy Efficiency in the United States Economy: A Beginning is a unique publication of the Energy Information Administration (EIA). Instead of reporting survey results or summarizing the energy-related characteristics of an economic sector or industry, this report presents the first step in a development process, a work in progress that you, our customer, can help in improving and refining.
Energy efficiency has recently become the focus of increasing attention as a vital component of the Nation's energy strategy. Energy-efficiency improvement is the first objective addressed in the Department's new mission statement, "To achieve efficiency in energy use." Additionally, a major emphasis of the Energy Policy Act of 1992 (EPACT) is on energy efficiency. The ability to assess the contribution of energy efficiency towards the country's continuing efforts to manage its energy demand requires a consensus on the definition of energy efficiency. Indicators of energy efficiency are needed that are precise, valid, reproducible, and as robust as possible for each economic sector, within the limitations of data availability.
Generally, the concept of efficiency improvement is easy to rally behind. Defining and measuring it are more difficult tasks, but they must be addressed if efficiency improvement is to be a viable part of our Nation's energy strategy. In meeting its customers' needs, EIA is the most logical agency to define and measure energy efficiency. In this publication, EIA begins to address these two tasks: (1) obtain a definitional understanding of energy efficiency and (2) develop indicators of energy efficiency.
The report is not intended to be a definitive statement on these issues, but rather a means of focusing the thinking of our customers and obtaining their input. Even with the assistance from experts in the report preparation, this publication is still nothing more than a "straw man." Many questions need to be answered, and you as our customer, if you desire, can become one of our valuable expert reviewers. As you read this report, please consider the precision and reproducibility of each methodology. Questions located on the page iii, titled "Focus Questions" at the beginning of this report may serve as a study guide for you to use as you read this report.
Preparation of this report has involved written reviews and other forms of feedback from offices within EIA--Energy Markets and End Use, Integrated Analysis and Forecasting, and Statistical Standards. Additionally, review comments were furnished by offices within the Office of the Assistant Secretary for Energy Efficiency and Renewable Energy (EE). Further comments were obtained from a series of internal seminars, which also included experts within EIA, the Department of Energy, and the National Laboratories.
Further comments on the report's contents will be sought through additional sources such as responses to an "interactive" Home Page on the Internet, electronic bulletin board workshops, and a series of 1-day sector-specific workshops to begin winter 1995. The goal of this approach will be to obtain the most robust indicators of energy efficiency that may be used over time as the standards in the measurement of energy efficiency for each sector of the U.S. economy. These robust indicators will allow EIA and its customers to assess the contribution of energy efficiency toward meeting the country's continuing efforts in managing its energy demand.
Organization of the Report
This report addresses the definitional and methodological issues surrounding the measurement of energy efficiency. Since energy efficiency can rarely be measured directly, the report focuses on the changes in energy-intensity with various techniques in each of the sectors.
Report Organization
Chapter 2 addresses issues on definition and measurements which relate to energy efficiency. Each of the next four chapters covers one of the major sectors of the U.S. economy. In each chapter, an indexed trend in energy consumption is shown followed by an organization section and a description of the data used in that chapter. Next, a discussion of energy consumption and changes in consumption for the sector is presented. The demand indicators that influence the amount of energy consumed are explored as well as their changes over time. The energy-intensity indicators are then presented as well as the changes in these indicators over two intervals of time--an interval of economic "growth/growth" and an interval of "recession/recovery" or "growth/recession"1. Each of the chapters ends with a discussion of the strengths and limitations of the energy-intensity indicators.
Chapter 7 presents the U.S. economy as a whole. The energy-intensity indicators developed in the sectoral chapters are the inputs into an economy-wide energy-intensity indicator. Since the sectoral indicators are unique to each sector, a methodology is presented in this chapter to overcome this obstacle. This chapter also addresses the importance of including energy generation, transmission, and distribution losses in the economy-wide energy-intensity indicators. Economy-wide energy-intensity indicators are developed taking the losses into account.
Meeting Different Customer Interests and Needs
The report is designed to be read and understood by different types of customers. This is accomplished by using three methods to provide additional information, shaded boxes with text, methodology appendix, and a glossary. The shaded boxes with text, appendix, and the Glossary are designed to give the reader fast access to definitional or technical documentation.
Shaded Box with Text
Shaded boxes with text are placed frequently throughout the report. These boxes provide brief definitions or information that assists in a better understanding of the material presented.
Appendix A: Adjustments
to the Data Methodology
In many cases the methodology behind the development of the energy-intensity indicators is complex. For this reason, the methodology for each indicator, estimates of energy consumption measures, and other technical issues are placed in the appendix in the appropriate section. A reference can be found either in the text or in a footnote that directs the reader; e.g., see "Primary Conversion Factors for Site Electricity" in the U.S. economy section of Appendix A for the methodology and an example.
Glossary
The Glossary, located in the back of this report, is divided into different sections. The first section is an overall general section, which includes information that is general in nature, e.g., definition of demand indicator. The next sections are sector-specific. The last section includes definitions that pertain to the economy, e.g., Gross Domestic Purchases and Gross Domestic Product.
1Two intervals of time will allow comparisons during different periods of economic activity. Additionally, the consumption survey data used in the development of the energy-intensity indicators were not available for the manufacturing and residential transportation sectors prior to 1985.
Contacts
- Specific questions on this topic may be directed to:
- Stephanie Battles
- Stephanie.Battles@eia.doe.gov
- (Phone: (202) 586-7237)
- FAX: (202) 586-0018
URL: http://www.eia.doe.gov/emeu/efficiency/ee_ch1.htm
File Last Modified: October 17, 1999