Demand Destruction Signals Long Term Shift in Energy Markets

Recent estimates suggest the US might meet the Kyoto Protocol because of natural gas substitution. Slate is reporting on a related trend, energy demand destruction:

So strategic demand reduction and management are part of the industry’s operating system; demand destruction is not. Demand destruction occurs when you eliminate or substantially reduce the need for the resource on a near-permanent basis. Somebody trading in a Chevrolet Malibu for a Nissan Leaf won’t be buying any gasoline for the next 10 years. Replacing a 30-year-old air conditioner with a more efficient new one will significantly reduce the power associated with cooling. Innovations in technology and business models can hasten the process of demand destruction—think of how the advent of iTunes cut into the sales of CDs. And there are signs that this is beginning to happen with electricity.

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