Foreword / by Olympia J. Snowe
Preface
Acknowledgements
Introduction
Energy efficiency and the economy
The critical role of energy efficiency in the economy
Energy use reduction
Environmental policies generate cost reductions
Opposition to energy efficiency
Establish more competitive markets
Direct success in energy efficiency
Early resistance to energy efficiency
The refrigerator story
Other energy-efficiency opportunities
How far can we go with efficiency?
Enhanced innovation
energy efficiency's unexpected success
Nonenergy benefits
Innovation, process improvement, and cost reduction
Overcoming barriers to innovation
National economic development policy and the environment
Environmental protection, economic barriers, and economic development
Economic fundamentalism
the use of economics as a religion rather than a science
What is economic fundamentalism?
How economic theory serves as a political force
How critical assumptions of economic theory are violated in practice
The need for regulation
How markets actually work
Lessons from California's failed experiment in "free markets" for electricity
The road to failure
What actually happened
myth versus reality
The consequences of the restructuring experiment
The true causes of the California energy crisis
How markets fail
What prevents expected results
Market barriers
Market failures
Human failures
Institutional failures: trade associations and the politics of environmental protection
Factors for market success
The politics of environmentalism
Myths of the anti-environmentalists
The myth of independent objective analysis
The myths about environmentalists
The consequences of the anti-environmentalist myth
Myths of the environmentalists
The greedy corporation myth
The "bad people" myth
The "small is beautiful" myth
Legitimate concerns of business and environmental interests
Business's concerns about new regulation
Reasons why business distrusts environmentalists
Environmentalists' concerns about business
The need for better communication
What truly motivates anti-environmentalists
A story of energy efficiency and global warming
The influence of economic and ideological incumbency
Who writes the regulations
Government versus private-sector regulation
Well-designed environmental policies
Current environmental policies
Future environmental policies
Where do we go from here?
Environmental policy promotes economic growth
Current barriers to environmental policies
How to transform the political debate
Incentives and regulation
Appendix: Myths and realities in California's experiment in electricity
Myth 1: Hugh growth of demand for electricity
Myth 2: Environmentalists and state bureaucrats blocked new power plant construction
Myth 3: Greedy utilities used restructuring as a plot
Myth 4: The flaws of restructuring were clear to all
Myth 5: Restructuring did not go far enough
Myth 6: The "genius of the market" will solve everything
Notes
Bibliography
Index.