Energy Efficiency

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The ratio of output or useful energy or energy services or other useful physical outputs obtained from a system, conversion process, transmission or storage activity to the input of energy (measured as kWh kWh-1, tonnes kWh-1 or any other physical measure of useful output like tonne-km transported). Energy efficiency is often described by energy intensity. In economics, energy intensity describes the ratio of economic output to energy input. Most commonly energy efficiency is measured as input energy over a physical or economic unit, i.e., kWh USD-1 (energy intensity), kWh tonne-1. For buildings, it is often measured as kWh m-2, and for vehicles as km liter-1 or liter km-1. Very often in policy ‘energy efficiency’ is intended as the measures to reduce energy demand through technological options such as insulating buildings, more efficient appliances, efficient lighting, efficient vehicles, etc.

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Environmental and Energy Study Institute: Energy Efficiency