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
Figure 2. Energy Efficiency. Source: Esty et al. (2005)

Figure 3. Total Ecological Footprint. Source: WWF (2004)

The Limits of Energy Efficiency 

Energy efficiency has its limits. For example, Verbruggen found that the physical limits of energy intensity are reached at around 0.1-0.05 kWh/$US-1998 GDP. Beyond that, any further limits of energy consumption need non-energy policies such as conservation. One cannot get infinite work out of finite energy. 

By focusing on energy efficiency alone, the Productivity Commission is missing half the picture. One often hears politicians talking about economic growth and how important it is. But we live on a finite planet with finite resources. Unless humans establish large, self-sufficient space colonies, indefinite economic growth is not possible. 

The other half of the picture is conservation, where people make do with less. That doesn’t mean we should become destitute. It means that we should strike a healthy balance (both environmentally and physically) between meagre and excessive consumption. Perhaps we should adopt Gross National Happiness, as was coined by Bhutan's King Jigme Singye Wangchuck, rather than Gross National Product. 

Rees describes economic growth as a modern myth and that “[g]rowth has become the default solution to everything from our cumulative debt to nature to chronic poverty”. He later went on and wrote that: 

“[T]he modern market model eschews moral and ethical considerations; ignores distributive equity; abolishes ‘the common good’; and undermines intangible values such as loyalty to person and place, community, self-reliance, and local cultural mores.”

Gare  wrote that: 

“In the post-modern world of the late 20th Century, economics has taken the place of theology, economists have taken the place of medieval priests and the market has taken the place of God.” 

Resource Limits 

The global economy expanded five-fold during the second half of the 20th Century, and about three-fold since 1980. At the same time, half the world’s landmass has been modified for human purposes and more than half of the world’s accessible fresh water is being used by people. As the global economy grows, the biosphere degrades. 

World Wide Fund for Nature (WWF) recently released a report on humanity’s impact on the biosphere. The findings are that: 

•	Humanity’s ecological footprint is increasing, while species populations have decreased by about 40% from 1970-2000. In 2001, our ecological footprint was 2.5 times larger than in 1961, and was 20% larger than Earth’s biological capacity. This overshoot is depleting Earth’s natural capital and is unsustainable. 

•	Global energy use increased by 700% from 1961-2001

•	Cropland areas remained static, with forest, grazing lands and fishing grounds showing small increases

•	Consumption levels of industrialised countries (especially North America) are a lot larger than developing countries. Energy consumption is 14 times higher in high-income countries than low-income countries

•	Global water use doubled from 1961-2001. The bulk of water usage is in agricultural areas, which grew about 75% during the time period. Industrial use more than doubled while domestic use grew four-fold. Water consumption levels in high-income countries are twice the level of middle- to low-income countries on average. 

Conclusion

Energy efficiency alone will not reduce energy consumption over the long term. To make a real difference, the consumerist and economic growth mentality that pervades Australian society will have to be removed and replaced with development within ecological limits.