IEA urges US to curb energy use
Sunday, 17 February 2008
WASHINGTON, Feb 16 (AFP): The International Energy Agency yesterday called on the United States to do more to curb energy use and fight global warming, saying pricing was the most important mechanism to curb demand.
The world's biggest economy and energy consumer has made progress toward a more sustainable energy system but is lagging behind other industrialised countries and even developing countries such as China in some areas, the IEA said in a report.
The IEA, which advises the US and 26 other members on international energy policies, acknowledged the challenge of changing the habits of Americans who are used to abundant resources and cheap energy prices.
"To address the multiple challenges that United States energy policy is facing, the price mechanism is the most important tool," said the report "Energy Policies of IEA Countries-
United States 2007 Review."
"The government should use it, by abolishing fossil fuel subsidies and creating taxation or other pricing regimes that internalise environmental costs."
The current US policy for low energy prices "is leading to forecasts of demand that are unsustainable, and creates significant security and environmental risks not just for the United States, but also for the rest of the world," the Paris- based agency warned.
The IEA welcomed Congress's passage in December of the first tightening of CAFE vehicle fuel-efficiency standards since 1975, which calls for a 40 per cent increase in the fuel standard to 35 miles per gallon by 2020.
The world's biggest economy and energy consumer has made progress toward a more sustainable energy system but is lagging behind other industrialised countries and even developing countries such as China in some areas, the IEA said in a report.
The IEA, which advises the US and 26 other members on international energy policies, acknowledged the challenge of changing the habits of Americans who are used to abundant resources and cheap energy prices.
"To address the multiple challenges that United States energy policy is facing, the price mechanism is the most important tool," said the report "Energy Policies of IEA Countries-
United States 2007 Review."
"The government should use it, by abolishing fossil fuel subsidies and creating taxation or other pricing regimes that internalise environmental costs."
The current US policy for low energy prices "is leading to forecasts of demand that are unsustainable, and creates significant security and environmental risks not just for the United States, but also for the rest of the world," the Paris- based agency warned.
The IEA welcomed Congress's passage in December of the first tightening of CAFE vehicle fuel-efficiency standards since 1975, which calls for a 40 per cent increase in the fuel standard to 35 miles per gallon by 2020.