The debate about how much energy efficiency is socially desirable and what is the best way to finance and implement energy conservation measures has reached a critical junction in many countries. The arguments have passed the stage of whether more energy efficiency is possible or desirable, and are centred around how much, and how best to implement them. This is a survey article which attempts to shed some light on several critical issues in this debate. First, it distinguishes between what is technically possible v what is economically desirable in energy efficiency improvements. Second, it looks at some of the alleged causes of social under-investment in energy efficiency and identifies ways to reduce or eliminate them. Third, it addresses the question of who is best equipped to implement energy efficiency improvements, and how one may go about promoting it. Finally, the paper addresses critical financing and equity questions.
