Report: Energy efficiency aids economy

BERKELY, Calif., Oct. 20 (UPI) -- A report released Monday said improvements in energy efficiency boost the U.S. economy by diverting money into labor-intensive consumer and service sectors.

The University of California, Berkeley study said nearly 1.5 million jobs were created in the state between 1977 and 2007 as lower utility bills saved consumers some $56 billion that could instead be spent at stores, restaurants and other such businesses.

"When consumers shift one dollar of demand from electricity to groceries," the report said, they create jobs among retailers, wholesalers, food processors and other businesses."

The New York Times said the report provided a counterpoint to fears that steps taken to restrict the burning of fossil fuels to combat global warming would damage the economy.

The authors of the report said in a conference call Monday because the energy market is so large, any improvement in energy efficiency, either through technology or conservation, can have a significant and fairly quick return for consumers. They likened it to the effects improvements in IT have on the overhead of a typical company.

The report anticipates further breakthroughs in the solar-power sector, including increasing its presence in the energy-intensive agriculture sector, more robust solar cells and lower costs for the installation of solar systems for both residential and commercial electricity production.