The US Energy Consumption Story: Americans Are Better Off Today

The US Energy Information Administration (EIA) reports, (emphasis mine)

While most home appliances have become more efficient over the past 30 years, the average U.S. household uses many more consumer electronics —in particular, personal computers, televisions and related devices, according to data released today by the U.S. Energy Information Administration (EIA) in the latest update to its Residential Energy Consumption Survey.

EIA on Household Devices

US households have increasingly been using more luxury items and convenience related devices than in the past.

Appliances and Electronic devices accounted for 31% of energy use in 2005 than in 1978 where energy use accounted for 17%. Moreover, air conditioning and water heating likewise reveal of the same story where energy use has materially increased today (8% for aircon and 20% for water heating), than in the past (3% and 14%).

EIA on Energy Intensity

And since energy intensity has been materially declining, this translates to even more intensive use of these devises.

This also is a great example of the Jevon’s paradox at work, which according to Wikipedia.org is the proposition that technological progress that increases the efficiency with which a resource is used tends to increase (rather than decrease) the rate of consumption of that resource.

Wikipedia.org on Jevon’s Paradox

Bottom line: Compared to the views of the permabears, gains from increased fuel efficiency and technological progress (brought about by capitalism) highlight the fact that American living standards have vastly improved over the past years, despite the stagflation, recessions and financial crisis.

Consumer Electronics, Energy and the Jevons Paradox

The explosion of consumer electronics globally has been putting pressure on energy consumption.


This from the New York Times,

``Electricity use from power-hungry gadgets is rising fast all over the world. The fancy new flat-panel televisions everyone has been buying in recent years have turned out to be bigger power hogs than some refrigerators.

``The proliferation of personal computers, iPods, cellphones, game consoles and all the rest amounts to the fastest-growing source of power demand in the world. Americans now have about 25 consumer electronic products in every household, compared with just three in 1980.

``Worldwide, consumer electronics now represent 15 percent of household power demand, and that is expected to triple over the next two decades, according to the International Energy Agency, making it more difficult to tackle the greenhouse gas emissions responsible for global warming.

``To satisfy the demand from gadgets will require building the equivalent of 560 coal-fired power plants, or 230 nuclear plants, according to the agency.

``Most energy experts see only one solution: mandatory efficiency rules specifying how much power devices may use.

``Appliances like refrigerators are covered by such rules in the United States. But efforts to cover consumer electronics like televisions and game consoles have been repeatedly derailed by manufacturers worried about the higher cost of meeting the standards. That has become a problem as the spread of such gadgets counters efficiency gains made in recent years in appliances.

``In 1990, refrigerator efficiency standards went into effect in the United States. Today, new refrigerators are fancier than ever, but their power consumption has been slashed by about 45 percent since the standards took effect. Likewise, thanks in part to standards, the average power consumption of a new washer is nearly 70 percent lower than a new unit in 1990."

Read the rest here.

In short, regulations which try to conserve energy by forcing technologically based efficiency on consumer electronics has resulted to an unintended consequence-exploding demand.

This is the Jevons Paradox or the Jevons effect at work.

From wikipedia.org, ``In economics, the Jevons Paradox (sometimes called the Jevons effect) is the proposition that technological progress that increases the efficiency with which a resource is used, tends to increase (rather than decrease) the rate of consumption of that resource. It is historically called the Jevons Paradox as it ran counter to popular intuition."

Hat Tip: Paul Kedrosky