Amory Lovins is one of my true heros, and I'm thrilled to hear that U.S New has named him
Lovins argues that, contrary to the common belief, efficiency is much cheaper than energy use. Especially when pursued with a technique he calls "integrative design,' doing efficiency right results in lower energy use, lower costs in the first place, and better productivity. The last point is critical - efficiency improves not only the bottom line by reducing costs, it also improves the top line by increasing productivity and profits.
So why aren't we pursuing energy efficency faster, if it has so many benefits? Many companies are doing so, getting benefits that go directly to their bottom line and give them a competitive advantage, like Dupont. And Intel. And Wal-Mart.
In 2006, for example, RMI partnered with Wal-Mart to boost the fuel efficiency of the retailer's truck fleet. "When Wal-Mart came to us," he says, "we had a lot of internal discussion, because they have big issues," notably the company's history of labor problems. "But we decided if we worked only with perfect companies, we wouldn't get anything done." The collaboration has proved fruitful. Wal-Mart is now working to retrofit its 6,800 trucks with designs developed by RMI that should allow its fleet to go from getting 6 miles a gallon to between 16 and 18 miles a gallon by 2015, saving about $500 million annually.
These companies, and many more, are enjoying an "unfair advantage" due to their pursuit of efficiency. But for many companies, there are mixed up incentives, such as between commercial landlords and their tenants. The landlord has to pay for the efficiency, but the tenant reaps the benefits - their interests are not aligned, and so "business is usual." In his books and talks, Lovins provides techniques, guidelines, and policy suggestions to help align these incentives.
For more on Lovins, I can recommend his books,
You can hear Lovins in numerous talks and interviews available as podcasts, including