Abstract
Energy-return-on-investment (ERI) analysis is a variation of more traditional cost-benefit analyses, a variation that is particularly important in times of diminishing fuel resources. We present a simple set of procedures for ERI analysis and apply those procedures to central New York State, where there is a proposal for a new 870 MWe coal-fired generating station. We compared the energy and dollar costs of building that facility with the costs of an alternative comprehensive regional program of insulation. The analysis showed that regional insulation was more efficient in conserving energy than the plant was in providing it by at least a factor of 4 in economic terms and by a factor of more than 15 when viewed as energy returned on energy invested.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
Literature cited
Bullard, C. W. 1978. Energy and employment impacts of policy alternatives In energy analysis: A new public policy tool. M. Gilliland (Ed.),AAA Symp. 9. Westview Press, Colorado.
Chapman, P. F., G. Leach, and M. Slesser. 1974. The energy cost of fuels.Energy Policy 2:231–43.
Eckstein, O. 1958.Water resources development: The economics of project evaluation. Harvard University Press, Cambridge, Massachusetts.
Edison Electric Institute. 1977.All weather comfort guideline. EEI Publ. No. 76-35, New York.
Evans, R. B. 1969. A proof that essergy is the only consistent measure of potential work (for work systems). Ph.D. Thesis. Dartmouth College, Hanover New Hampshire.
Ford Foundation Energy Policy Project. 1974.A time to choose: America's energy future. Ballinger, Lexington Massachusetts. 511 pp.
Gibbons, J., R. Carlsmith, M. Whiting, E. Goodson, C. Bullard, D. Chapman, C. Berg, N. Bradburn, P. Craig, J. Darmstadler, S. Rattien, L. Schipper, and R. Uhler. 1978. U. S. energy demand: Some low energy futures. Science 200:142–152.
Gilliland, M. W. 1975. Energy analysis and public policy.Science 189:1051–1056.
Hall, C. 1977. Models and the decision making process: The Hudson River power plant case. In C. Hall and J. Day (eds.) Ecosystem modelling in theory and practice. Wiley (Interscience), New York.
Hall, C., R. Howarth, B. Moore, and C. Vorosmarty. 1978. Environmental impacts of industrial energy systems in the coastal zone.Annual Review of Energy 3:395–475.
Huettner, D. A. 1976. Net energy analysis: An economic assessment.Science 192:101–104.
Lovins, A. 1976. Energy strategy: The road not taken?Foreign Affairs 55:65–96.
Mishan, E. J. 1971.Cost-benefit analysis: an introduction. Praeger, New York.
NYSEG. 1974. Cayuga Station application to the New York State Board on electric generation siting and the environment for a certificate of environmental compatability and public need. Volume 1. Including exhibit A, need for a facility and testimony of B. M. Rider.
NYSEG. 1977.1977 Annual Report, Dryden, New York.
Odum, H. T., C. Kylstra, J. Alexander, N. Sipe, T. Lern, M. Brown, S. Brown, M. Kemp, M. Sell, W. Mitsch, E. DeBellevue, T. Ballentine, T. Fontain, S. Bayley, J. Zuccetto, M. Costanza, G. Gardner, T. Dolan, A. March, W. Boynton, M. Gilliland, and D. Young. 1976. “Net energy analysis of alternatives for the United States.” Hearing before the Subcommittee on Energy and Power of the Committee on Interstate and Foreign Commerce, House of Representatives, 94th Congress.In Part I, Middle- and Long-Term Energy Policies and Alternatives, U.S. Government Printing Office, Washington, D.C. pp. 253–302.
Perry, A. M., W. D. Devine, Jr., A. E. Cameron, G. Marland, H. Plaza, D. B. Reister, N. L. Treat, and C. E. Whittle. 1977. Net energy analysis of five energy systems. Institute for energy analysis, Oak Ridge Associated Universities, Oak Ridge, Tennessee.
Pilati, D. A., and R. P. Richard. 1975.Total energy requirements for nine electricity-generating systems. Center for Advanced Computation. University of Illinois, Urbana.
Ross, M. H., and R. H. Williams. 1976. Energy efficiency: Our most underrated energy resource.Bulletin of At. Sci. 32(9):30–38.
United Engineers. 1975. Cayuga Station, preliminary cost estimate. Boston, Massachusetts (xerox-3 pp.).
U.S. Department of Housing and Urban Development, Community Services Administration. 1975.A community planning guide to weatherization, CSA pamphlet no. 614306. U. S. Government Printing Office, Washington, D.C.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Hall, C., Lavine, M. & Sloane, J. Efficiency of energy delivery systems: I. An economic and energy analysis. Environmental Management 3, 493–504 (1979). https://doi.org/10.1007/BF01866318
Issue Date:
DOI: https://doi.org/10.1007/BF01866318