The global financial crisis may provide more incentive for government investment in energy-efficiency programs, particularly in the world’s developing nations, according to a report from the McKinsey Global Institute. With energy demand expected to increase 65 percent in developing countries by 2020, these regions will account for nearly two-thirds of the world’s energy demand, compared with 51 percent today. According to the report, governments in countries such as China and India could productively invest as much as $90 billion annually over the next dozen years in energy efficiency — including fuel-efficient vehicles, improved building insulation, and more efficient lighting systems. The report said that by aggressively implementing energy-efficiency programs, developing countries could eliminate the need to spend roughly $2 trillion on new energy-generating projects, such as coal-fired power plants. Investments in energy efficiencies would also reduce fuel imports, lower building costs, and make governments less vulnerable to economic downturns, the report said.
Fiscal Crisis Is IncentiveFor Energy Efficiencies, Report Says
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