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Energy Efficiency by Fereidoon P. Sioshansi

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Chapter 1

Will Energy Efficiency make a Difference?

Fereidoon P. Sioshansi, Menlo Energy Economics. With contributions from Ahmad Faruqui, The Brattle Group, and, Gregory Wikler, EnerNOC

1 Introduction

Interest in energy efficiency got a significant boost following the 1973 Arab oil embargo when rich economies collectively got a wake-up call on just how vulnerable they were to the whims of the oil exporting countries or potential disruptions in the flow of oil – whether through the Strait of Hormuz or Malacca – or broader conflicts in the Middle East and beyond. The Iranian Revolution of 1979 provided a second wake-up call.1 Surprisingly, the vulnerability persists, despite four decades of efforts to address it.2

The initial response of the oil-importing ...

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