ECONOMICS OF ENERGY MANAGEMENT.

The building industry is still in the process of adjusting to the past shocks of high energy costs and uncertain fossil fuel supplies. This adjustment entails designing, building, equipping, and operating buildings for greater energy efficiency, as well as incorporating the use of renewable energy souces in some cases. A reasonable goal is to find a new balance among energy and other resources used in buildings that will result in more economically efficient use of all of these resources. The purpose of this paper is to provide the reader guidance in asking the right economic questions, in evaluating the cost effectiveness of alternative investments, and in finding assistance along the way.