Why Energy Efficiency Alone Won’t Solve Our Climate Problems

When countries make plans to fight climate change, they often focus heavily on energy efficiency—making buildings, appliances, and vehicles use less energy. But a new study suggests this approach might be missing the bigger picture. 

Clinton Andrews, RCEI Affiliate, Distinguished Professor at the Bloustein School of Planning and Public Policy at Rutgers University, and Rachael Shwom, Professor in the Department of Human Ecology at Rutgers University are co-authors of this research paper published in Environmental Policy and Governance. The lead author is Dr. Pranay Kumar, University College Dublin, a 2023 Rutgers Ph.D. graduate. This paper examines how energy efficiency policies connect to broader social, economic, and political challenges in the transition to sustainable energy systems. 

The authors analyzed over 200 scientific publications to understand how energy efficiency is discussed in research on sustainable energy transitions. They found that while energy efficiency gets significant attention, several critical issues remain understudied: the relationship between efficiency and actual consumption, conflicts between different stakeholders, political dynamics that shape policies, questions of fairness and equity, and tensions between public goals and market-based approaches. 

A key finding is that improving efficiency doesn’t always reduce total energy use. When appliances become more efficient, people and companies often use them more, offsetting the savings—known as the “rebound effect.” The study also highlights that energy efficiency programs may not equally benefit all communities, potentially leaving low-income households behind despite being designed to help them. 

For climate action, this matters significantly. Meeting international carbon reduction targets requires not just more efficient energy use, but actual decreases in total fossil fuel energy consumption. The research emphasizes that policies must address who benefits from efficiency programs and who bears the costs. 

“We need policies that go beyond technical solutions and consider the complex social and political realities of how people actually use energy,” Andrews noted. “Understanding these challenges helps policymakers design programs that are not only efficient but also fair and effective at reducing carbon emissions.” 

The research can inform energy policy decisions at local, state, and federal levels, helping governments balance economic efficiency with environmental goals and social equity. By recognizing political negotiations and conflicts between utilities, regulators, and consumers, policymakers can craft strategies that address climate change while ensuring benefits reach all communities. 

You can read the full study here: https://doi.org/10.1002/eet.70022 

This article was written with assistance from Artificial Intelligence, was reviewed and edited by Oliver Stringham, and was reviewed by Clinton Andrews and Rachael Shwom, co-authors on the study.