4. Energy efficiency

Key data

(2017)

TFC: 1 523.7 Mtoe (oil 49.3%, natural gas 22.7%, electricity 21.1%, bioenergy and waste 5.3%, coal 1.1%, heat 0.4%, solar 0.1%) -3.3% since 2007

Consumption by sector: transport 41.0%, industry 26.9%, residential 16.1%, commercial 16.0%

Energy consumption (TFC) per capita: 4.7 toe (IEA average 2.9 toe)

Energy intensity (TFC/GDP): 88 toe/USD million PPP (IEA average: 74), -21% since 2007

Overview

The United States (US) has seen a reduction in energy intensity in recent decades. From 1990 to 2017, the US population grew by around 30% and gross domestic product (GDP) nearly doubled, while total final energy consumption (TFC) increased more slowly by 18%. Especially since the decline in the economy and energy consumption after the financial crisis in 2008-09, TFC has decoupled from economic growth, and slightly also from population growth (Figure 4.1).

Figure 4.1 Energy supply and drivers, 1990-2017

IEA (2019). All rights reserved.

US energy intensity is declining and TFC stalling despite continued economic growth.

Notes: GDP data are in billion USD 2010 prices and purchasing power parity (PPP).

Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics/.

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4. ENERGY EFFICIENCY

Notably, among International Energy Agency (IEA) member countries, the United States has seen more rapid improvement in energy efficiency compared with many other large economies (Figure 4.2). Despite this improvement, US energy intensity is one of the highest among IEA member countries (Figure 4.3).

Figure 4.2 TFC per GDP in the United States and selected IEA countries, 1990-2017

IEA (2019). All rights reserved. Notes: toe = tonnes of oil equivalent. Energy intensity in TFC per GDP (2010 prices with PPP).

Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics/.

Figure 4.3 Energy intensity in IEA member countries, 2017

Energy consumption per GDP (TFC/GDP)

Energy consumption per capita (TFC per capita)

IEA (2019). All rights reserved.

Despite energy efficiency improvements in recent years, the United States has among the highest energy-intensive economies in the IEA, measured both per GDP and per capita.

Notes: Energy intensity in TFC, not including the energy transformation sector. GDP data are in billion USD 2010 prices at PPP.

Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics/.

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4. ENERGY EFFICIENCY

In 2017, the United States had the fourth-highest TFC per GDP, 19% above the IEA average. Measured as per capita energy consumption, the United States placed thirdhighest in the comparison, 61% above the IEA average and around double the IEA median level.

There is potential for improving energy efficiency across all sectors, from improving efficiency of appliances and vehicles to setting stricter energy performance standards for buildings, including those owned by the public sector. Saving energy is often more costefficient than producing energy, and it can be combined with additional economic growth, job creation and environmental protection.

In 2017, US TFC was 1 524 million tonnes of oil equivalent (Mtoe), 3% below consumption in 2007. The transport sector accounts for the largest share, followed by residential and commercial buildings and the industry sector (Figure 4.4).

Figure 4.4 Final energy consumption by sector, 1990-2017

IEA (2019). All rights reserved.

Transport accounts for over 40% of TFC, and is the only sector that has increased in recent years, while energy use in buildings and industry has been relatively stable.

*Includes the sectors residential, commercial and services, agriculture, forestry, and fishing. **Includes non-energy use.

Source: IEA (2019), World Energy Balances 2019, www.iea.org/statistics/.

Institutional governance of energy efficiency policies

Energy efficiency policy is directed by the federal, state and local governments in the United States, and in some instances overlap with one another. Importantly, energy efficiency enjoys a considerable degree of bipartisan support based on benefits to reducing emissions, lowering energy bills and boosting energy security. At the federal level, energy efficiency policies are mostly administered by the Department of Energy (DOE) and the Environmental Protection Agency (EPA).

Policies and regulations for energy efficiency are carried out through a combination of mandatory and voluntary standards, as well as tax incentives, technical assistance, and research and development (R&D) support. Though the administration had proposed cuts to several energy efficiency programmes, the 2018 omnibus spending bill – passed by Congress in March 2018 – increased funding for the DOE’s Office of Energy Efficiency

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