The Critical Role of Energy Efficiency in
the Economy Energy Use Reduction • Environmental
Policies Generate Cost Reductions • Opposition to Energy Efficiency
• Establish More Competitive Markets
2
Direct Success in Energy Efficiency Early Resistance to Energy Efficiency • The Refrigerator
Story • Other Energy-Efficiency Opportunities • How Far Can
We Go with Efficiency?
3
Enhanced Innovation-Energy Efficiency's Unexpected
Success Nonenergy Benefits • Innovation,
Process Improvement, and Cost Reduction • Overcoming Barriers to Innovation
• National Economic Development Policy and the Environment
Part
II: Environmental Protection, Economic Barriers, and Economic Development
4
Economic Fundamentalism—The Use of Economics
as a Religion Rather Than a Science What
Is Economic Fundamentalism? • How Economic Theory Serves as a Political
Force • How Critical Assumptions of Economic Theory Are Violated in
Practice • The Need for Regulation • How Markets Actually Work
5
Lessons from California's Failed Experiment in "Free
Markets" for Electricity The
Road to Failure • What Actually Happened—Myth Versus Reality
• The Consequences of the Restructuring Experiment • The True
Causes of the California Energy Crisis
6
How Markets Fail What
Prevents Expected Results • Market Barriers o Market Failures o Human
Failures • Institutional Failures: Trade Associations and the Politics
of Environmental Protection • Factors for Market Success
Part
III: The Politics of Environmentalism
7
Myths of the Anti-Environmentalists The Myth of Independent Objective Analysis •
The Myths about Environmentalists • The Consequences of the Anti-Environmentalist
Myths
8
Myths of the Environmentalists The Greedy Corporation Myth • The “Bad
People” Myth • The “Small Is Beautiful” Myth
9
Legitimate Concerns of Business and Environmental
Interests Business's Concerns About New Regulation
• Reasons Why Business Distrusts Environmentalists • Environmentalists'
Concerns About Business • The Need for Better Communication
10
What Truly Motivates Anti-Environmentalists A Story of Energy Efficiency and Global
Warming • The Influence of Economic and Ideological Incumbency •
Who Writes the Regulations • Government Versus Private-Sector Regulation
11
Well-Designed Environmental Policies Current Environmental Policies • Future Environmental
Policies
12
Where Do We Go from Here? Environmental
Policy Promotes Economic Growth • Current Barriers to Environmental
Policies • How to Transform the Political Debate • Incentives
and Regulation
13
Appendix: Myths and Realities in California's Experiment
in Electricity Restructuring Myth 1: Huge
Growth of Demand for Electricity • Myth 2: Environmentalists and State
Bureaucrats Blocked New Power Plant Construction • Myth 3: Greedy
Utilities Used Restrucuting as a Plot • Myth 4: The Flaws of Restructuring
Were Clear to All • Myth 5: Restructuring Did Not Go Far Enough •
Myth 6: The "Genius of the Market" Will Solve Everything
Notes
Bibliography
Index
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