How can energy-efficient structures compete in an inefficient energy market

The only way resources can be efficiently allocated in our market system is if prices of resources, goods, and services properly reflect their true value to society. However, because of (a) imperfections in the pricing mechanisms that currently influence private-sector decision making; (b) the difference in planning horizons between individuals and government; and (c) the external benefits that would accrue to society from energy-conscious decision making by individuals, it is apparent that there exists a substantial underinvestment in advanced-conservation and renewable-resource building technologies. Even if domestic energy prices were deregulated to reflect world market prices (now determined by OPEC) it is likely that underinvestment in energy-conscious design would still occur. For that reason, the only way that energy-conscious design will be implemented to the extent warranted is if a concerted political commitment is made to such a program at the Federal, state, and local levels. Such a commitment is not without precedent. The experiences of Davis and San Diego, California, and the TVA exemplify the extent to which energy conservation and renewable-resource development can be carried out if political leadership and support is established. It is known that technologies and design solutions for energy-efficient buildings are available today and are cost-effective. What remains to be seen is whether the political leadership of the United States will fully recognize the sensibility of a concerted conservation and renewable-energy-resource program for buildings as opposed to continued attempts at increasing energy production to supply an energy-inefficient-building inventory. 16 references.