(47c) The Challenge of Energy Efficiency in an Uncertain Energy Price

We now face real oil prices -- and other energy prices -- sharply higher than seen since 1982. Futures market suggest that those prices are likely to remain high and that there is great uncertainty about whether they will increase well above the current levels or drop from the current levels. These circumstances imply a high national value for energy efficiency investments but that private decision makers may be deterred by the risk. This session overviews the economic issues associated with energy efficiency improvements and proposes a set of policy interventions to promote energy efficiency in the current uncertain energy price environment.