Economic efficiency

Bubble Policy The bubble concept introduced under PSD provisions of the Clean Air Act Amendments of 1977 was formally proposed as EPA policy on Jan. 18, 1979, the final policy statement being issued on Dec. 11, 1979. The bubble pohcy allows a company to find the most efficient way to control a plant s emissions as a whole rather than by meeting individual point-source requirements. If it is found less expensive to tighten control of a pollutant at one point and relax controls at another, this woiild be possible as long as the total pollution from the plant woiild not exceed the sum of the current hmits on individual point sources of pollution in the plant. Properly apphed, this approach would promote greater economic efficiency and increased technological innovation. 

Total overall performance effectiveness indicates PTPM s pursuit of economic efficiency or profitability. 

Wood may be cheaper and oil more convenient. If two people are confronted by the same information and one chooses wood while the other chooses oil, both decisions may he economically efficient in the sense of maximizing the utility, or satisfaction, of the decisionmaker. 

Energy can almost always be replaced in part by other inputs. For example, a steam pipe can be insulated more heavily or an industrial process can be modified to use more labor and less energy. Economic efficiency docs not imply minimizing the use of energy or any other input, but rather finding the appropriate mix of inputs. The economically efficient level of inputs is reached when the last dollar spent on energy yields the same amount of benefits as the last dollar spent on labor or materials or any other input. 

After the average crude oil price increased from 3.18 per barrel in 1970 to 21.59 in 1980, many analysts forecast skyrocketing energy prices for the remainder of the centuiy. The middle price path of the U.S. Energy Information Administration in 1979 projected a nominal price of 117.50 per barrel in 1995 Such forecasts seemed to be soundly based not only in recent experience but also in the economic theoiy of exhaustible resources. As a consequence, U.S. industries invested heavily in energy conseiwa-tion measures, with the result that industrial consumption of energy decreased from 31.5 quads in 1973 to 27.2 in 1985. Some of this investment was probably not warranted on economic efficiency gi ounds because prices ceased to rise after 1981, and even plummeted to 10 per barrel in 1986. 

Because economic efficiency is simply a description of the rules by which individuals and firms can gain the most of what they want, another characteristic of economic efficiency is that firms and individuals do not need orders or special incentives to induce them to pursue it. They are simply acting in their own interest as they see it. 

All of the information required for firms and individuals to pursue economic efficiency is conveyed by the price system. The price of natural gas relative to coal conveys information to all potential users of the... 

Another characteristic of the economic-efficiency concept IS that it does not require arbitrai y decisions by the analyst about, fur example, how coal should be evaluated compared with natural gas. The question of whether I Btu of coal is equal to 1, or perhaps 1/2, Btu of natural gas is answered directly by the market. The weightings of the marketplace, revealed in relative prices, vary with scarcity, cost of production, technology, and human preferences. Decisionmakers do not need to think about the underlying reasons, however. They need to know only current prices (and make their best guesses about future prices). 

The characteristics of economic efficiency noted above are considered advantages by most economists... 

For the entire economy, with its countless services and inputs, economists usually define the service or economics efficiency as the entire GDP (Gross Domestic Product) divided by E, the annual total primary energy used Economic Efficiency = GDP/E. 

Even when the time comes to make a purchasing decision, an energy-efficient motor purchase is not a certainty. Sometimes an energy-efficient motor will be the economically efficient choice at other times, not. The capital investment decision is based on the cost in relation to performance, efficiency and reliability. Moreover, the decision depends on the application and the amount of time the motor is in operation. It can be the major component of a product (drill or mixer), or a minor component (computer disk drive) it can be the major component cost of a product (fan), or it can be a minor component cost (stereo tape deck) it can run almost constantly (fan, pump, and machinery), or only a few minutes a day (vacuums and power tools). For example, contractors purchase circular saws almost solely based on performance and reliability. Time is money, and since the saw is operating only a few minutes a day and the contractor is often not responsible for the electricity costs to run the motor, energy efficiency is not a consideration performance and reliability are what matter most. On the other hand, an industrial user, who runs huge electric motors twenty-four hours a day to work pumps, machinery, and ventilation equipment, is very concerned tvitli energy efficiency as well as performance and reliability. 

See also Batteries Capital Investment Decisions Consumption Economically Efficient Energy Choices Electricity Electric Power, Generation of Faraday, Michael Fuel Cells Fuel Cell Vehicles Magnetism and Magnets Oersted, Hans Christian Tesla, Nikola. 

See also Auditing of Energy Use Capital Investment Decisions Economically Efficient Energy Choices Energy Economics Industiy and Business, Productivity and Energy Efficiency in. 

See also Consei vation of Energy Consumption, Culture and Energy Usage Economically Efficient Energy Edison, Thomas Alva Elctricity Electricity, History of Electric Power, Generation of Power. 

See also Consei vation of Energy Consumption Economically Efficient Energy Choices Efficiency of Energy Use. 

While the homestead theory was never seriously considered in the United States experience, it has been recommended as part ot a subsoil privatization program for Latin America. The major attraction is increased economic efficiency Production and management of a contiguous oil and gas resei voir is most efficiently done by one operator, and homesteading creates one owner in place of multiple owners under the rule of capture. 

Economically Efficient Energy Choices William S. Peirce... 

The stock value. The value of the stores stock represents a significant investment for many manufacturers and financing the work in progress can represent a significant cost. It is a useful indicator of the financial health of a company and is a prime target for cuts in the drive for increased economic efficiency. Section 7.2 highlighted this. 

Multistage counter-current liquid-liquid extraction is characterized by a high production capacity and economic efficiency. 

The Audit Commission for England and Wales promotes proper stewardship of public finances and helps local authorities and the NHS to deliver economic, efficient and effective public services. The Commission also owns District Audit, which it appoints to carry out many of the audits for which the Commission is responsible. District Audit operates as an arm s-length agency. 

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