ENERGY-CONSERVATION POLICIES

An increased efficiency of energy use, often equated with increased conservation, is widely believed to be an important factor in constraining consumption of fossil fuels in the light of fears of global warming. This mistaken belief is founded on the fall in energy-GDP ratios observed since 1973, interpreted as a decoupling of energy from economic growth. Energy conservation is only one of a number of factors contributing to this fall. In general, increasing efficiency of use will lead to reduced costs, which in turn promotes a greater usage. If global warming is to be taken seriously, restrictions on fossil fuel consumption may have to be imposed, by measures such as the carbon tax proposed by the International Energy Agency. © 1990.