Energy Economics Kelly Kissock, Ph.D., P.E. Department of Mechanical and Aerospace Engineering University of Dayton Industrial Assessment Center.

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Presentation transcript:

Energy Economics Kelly Kissock, Ph.D., P.E. Department of Mechanical and Aerospace Engineering University of Dayton Industrial Assessment Center

“Efficiency Gap” “Numerous studies conclude 20% to 40% energy savings could be implemented cost effectively, but aren’t…..” Discrepancy between economic and actual savings potential called “efficiency gap”.

Cost of Energy Efficiency “ACEEE Research shows that some 25% of total electricity usage can be saved cost effectively, at an average of 3 cents or less per saved per kWh. New generation sources cost 5 cents or more per kWh, making efficiency the lowest cost electricity resource”

U.S. CO 2 Emissions 6 GT/yr Can reduce 1.3 GT/yr at Negative Cost Miller, P., 2000, “Saving Energy It Starts at Home”, National Geographic, March

Global CO 2 Reduction Potential “The Carbon Productivity Challenge”, McKinsey Global Institute,