New report says energy efficiency can make big difference.

Energy consumption could be cut by more than half over the next 15 years through more aggressive energy-efficiency efforts by households and industry, according to a study by the McKinsey Global Institute.

The energy savings can be achieved with current technology and would save money. The McKinsey report offers a long list of suggested steps, including the adoption of compact fluorescent light bulbs, improved insulation on new buildings, reduced standby power requirements, an accelerated push for appliance-efficiency standards and the use of solar water heaters.

This could reduce the yearly growth rate in worldwide energy demand through 2020 by almost three-quarters of current estimates, (to six-tenths of a percent, from a forecast annual rate of 2.2 percent) the report concluded.

The report highlights the need for better public education saying that many steps are not taken because energy users lack information. or do not value efficiency enough to change their buying habits. That helps explain the slow progress made by compact fluorescent light bulbs in the marketplace. Compact fluorescents are only slightly more costly than conventional bulbs, yet they last 10 times as long and consume 75 percent less electricity. The overall financial advantage of using compact fluorescent bulbs is obvious and sizable, even if the initial purchase price is higher.

By easing demand, efficiency programs can help restrain energy prices and help curb global warming.

Click here to read the McKinsey report:
Click here to read more in the New York Times.

- David Adams