Role of local governments in promoting energy efficiency

Abstract

An examination is made of the incentives which influence the decisions by local governments to adopt energy-efficiency programs, either unilaterally or in partnership with the Federal government. It is found that there is significant potential for improved energy efficiency in urban residential, commercial, and industrial buildings and that exploiting these opportunities is in the interest of both Federal and local governments. Unless there is a unique combination of strong local leadership, a tradition of resource management, and external energy shocks, communities are unlikely to realize this potential. Conflicting demands, traditional perceptions, and lack of funding pose a major barrier to a strong unilateral commitment by local governments. A Federal-local partnership built upon and complementary to existing efforts in areas such as housing, social welfare, and economic development offers an excellent opportunity to realize the inherent potential of local energy-efficiency programs. At the local level, energy is not perceived as an isolated issue, but one which is part of a number of problems arising from the continuing increase in energy prices.