Julie,
The questions that you asked are the same questions that will be asked by many people. What I said was counter-intuitive.
Here is some info to support my claims:
1) Regarding the statement that automobile engine efficiency has increased 30% and 29/30 of that went into power rather than fuel economy... This comes from 2 sources, one of which I stupidly failed to write down. Here's the other:
NARRATOR: Over several decades, automotive engineers at Sloan and other labs around the world have increased engine efficiency by 30 percent.
JOHN HEYWOOD: Engines and transmissions have got steadily more efficient, year by year by year by year by year. So it's better technology. Then the question is: "What do we do with these more powerful and more efficient engines?" We've put them into increasing vehicle performance so our vehicles accelerate faster, more aggressively, and we've put them into larger vehicles, heavier vehicles. ... [W]e haven't gained. We've sort of stood still.
John Heywood is a professor at M.I.T.
2) I don't have a quote specifically about the industrial sector. But your supposition is correct -- the savings go to stockholders or consumers (or the business managers), who in turn spend that money on other things, and those other things consume energy.
When people save money on their electric bill, it doesn't mean that they spend the savings on electricity. But if people choose to spend 100% of their income (as most Americans do now), every dollar saved in one area tends to lead to another dollar of spending in other areas. Unless those other areas don't involve energy, you come back roughly where you started.
Here's a draft of an article that I've been working on that covers this in more detail.
----------------------------------------------------------------------------------------------------
WHY TECHNOLOGY WON'T SAVE US FROM A RESOURCE CRISIS
Everyone knows that we consume large quantities of non-renewable
resources, such as oil and copper, and that this is unsustainable.
And most people know that we are using many renewable resources
(such as lumber [footnote 1] and groundwater [Footnote 1B]) much faster than
we renew them. Yet few politicians or consumers worry that
we will face a resource shortage in the future. Some
economists, such as Julian Simon, go so far as to claim that
resources, including energy, are infinite, [footnote #10] -- in
direct contradiction to the laws of physics [footnote 10.2].
The lack of worry is based on one assumption:
no matter how unsustainable our current economic system is,
technology will improve fast enough to make our economic
system sustainable. In other words, technology will eliminate
the gap between what we consume and what we sustainably produce.
As an example, California's Governor Schwarzenegger recently
declared at a car show that we don't need to give up large,
high-powered cars to slow global warming; we merely
need to wait for technology to solve the problem.
But if technology alone would save us, then as our technology
improves, our economy should be getting more sustainable every
year, either by consuming less or by producing more (sustainably).
However, the reality is that despite rapid improvement in
technology, our economy is becoming LESS sustainable, not
more sustainable.
New Scientist magazine reports that between 1975 and 2003, the
world's economies entered "ecological overshoot" (i.e. our
economies are no longer sustainable), growing from
approximately 80% of the long-term
sustainable level to approximately 120% of the sustainable
level. [footnote 8, 11] Technology is not solving this problem;
the high-tech countries, such as the U.S. and most European countries,
are increasing their overshoot even faster than the world average.
Examples of increasing overshoot include:
- Energy: U.S. and world-wide energy consumption
continue to rise. 30 years ago, the U.S. imported 50%
of the oil it needed; today it imports 60%.
Technology has grown, but population and per-capita
consumption have grown at a faster rate. [footnote 6]
- Water: In much of the U.S., including in key mid-western
food-producing states, groundwater is pumped out much faster than
it is replaced. Even states with high rainfall, such as Florida,
face water shortages. [footnote 3] And demand continues to rise
while supply is falling. The same problems exist worldwide.
[footnote 12]
- Farmland: Topsoil is eroding 20 times faster than new topsoil is
created [footnote 4], and despite improved soil conservation
techniques in some areas, the global problem is
getting worse, not better. [footnote 5]
Why is it that with more technology we become less sustainable?
The reason is that when we get new technology, we typically do
not use it to narrow the gap between consumption and sustainable
production -- we use technology to consume more, not less.
For example, over the last 20 years, automobile manufacturers
have increased engine efficiency by 30%. 29/30ths of that
was used to make engines more powerful, and only 1/30
to improve gas mileage. In addition, the average number
of miles driven per person rose by 20% over the last
30-40 years. And U.S. population rose by more than
40% over the same period of time. As a result, despite
impressive technological improvements in automobile
engine design, we are burning more gasoline than ever.
Similarly, airplanes have become lighter and more efficient,
yet each year we consume more jet fuel as population and
per-capita travel increase. [Footnote 7.] (Remember
that the next time your travel company calls a vacation
"eco-tourism".)
As another example, my current laptop computer uses much less
electricity per calculation than my previous one. However,
the higher speed, larger screen, and increased memory more
than compensate for higher efficiency -- my current laptop
uses 3 times as much electricity as my old one.
Computers were supposed to save trees by giving us the
"paperless office". But improvements in computer
technology were paired with improvements in printer
technology, and Americans use more paper than ever.
These examples (cars, planes, and computers) are typical,
not exceptional. In the overall U.S. economy, we have
improved energy efficiency greatly, yet per-capita consumption
has increased. The same trend exists in most or all
industrialized countries. [footnote 13] In some countries,
such as the U.S., population growth has exacerbated the
problem still further.
Even efforts at energy conservation are not helping much. One
study even called the trend "the efficiency paradox" -- that
as we save money by conserving energy, we use that additional
available income to buy more goods and services, ultimately
using as much energy as before we conserved. [footnote 13]
Our culture is devoted to maximizing current consumption.
As we get richer, we can more easily afford to save a
larger portion of our income. Yet we do the opposite.
Over the last few decades, Americans have saved less and
less of their income. Last year (2006), Americans
actually spent more than 100% of their take-home pay.
Similarly, as our technology becomes more efficient, we consume
more rather than less, and therefore we become less sustainable.
Although technology can help, technology alone cannot save us
from ourselves. No technology can prevent a resource crunch
as long as we use technology to consume more, rather than less.
1B) The Food Policy Research Institute predicts that
under the "business as usual" scenario, groundwater
pumping will increase between now and 2025 (which
is as far into the future as the study looked).
http://www.ifpri.org/pubs/fpr/fprwater2025.pdf
4) New Scientist, August 11, 2007, p. 34
An analysis by
WILKINSON, Bruce H., Department of Earth Sciences, Syracuse University,
and MCELROY, Brandon J., Department of Geological Sciences,
University of Texas, Austin,
indicates that far more than half of this is due to human
population growth driving up the amount of land that we farm.
Our technological improvements in food production per acre have
not kept up with population growth, and as a result we
continue to increase the number of acres under cultivation.
Since almost all of the best farmland has been used up,
new production generally comes from areas with steeper slopes
or other factors that make them more vulnerable to erosion.
6) "Since the first "oil shock" of 1973, the US economy has grown
nearly five times faster than energy use, according to the
federal Department of Energy. While gross domestic product (GDP)
more than doubled over the past 20 years, energy use rose
just 26 percent."
7) "New aircraft, such as Boeing's 787 Dreamliner, due out
in the summer of 2008, will be made of lighter composite
materials and employ other fuel-saving measures. But
these improvements won't be nearly enough to offset the
predicted increase in air travel (including air freight)."
Christian Science Monitor, February 12, 2007, p.14
"Efficiency is only set to improve at 1 or 2 percent per year
at best, while the number of passenger kilometers is growing
at 5 or 6 percent." Peter Lockley, quoted in
Christian Science Monitor August 17, 2007 p. 5
8) New Scientist Magazine, October 6, 2007, p. 10
The article also says: "By looking at each country's historical trajectory,
a clear pattern emerges... [the ecological impact] is growing at a rate
proportional to their wealth. Developed countries in particular have
done very little to reduce their impact."
10.2) The first law of thermodynamics says that matter and energy can
neither be created nor destroyed; there is a finite amount of
matter and energy in the universe, and that is all that there will
ever be.
11) Even the estimate that we are only 120% of the sustainable level is
highly optimistic, since we continue to consume non-renewable resources,
and the ratio of amount consumed to the amount sustainably consumable
is effectively infinite.
12) "Demand for the world's increasingly scarce water supply is rising... Even as demand for water
by all users grows, groundwater is being depleted, other water ecosystems are becoming
polluted and degraded, and developing new sources of water is getting more costly."
Global Water Oulook: Averting an impending crisis by Mark W. Rosegrant, Ximing Cai,
and Sarah A.Cline, published by the International Food Policy
Research Institute and the International Water Management Institute.
Copyright (c) 2007-2008 Mark Gilkey. All rights reserved. Permission to reproduce may be granted upon request.
-----------------------------------------------------------------------------------------------------
By the way, our group continues to encourage feedback. Feel free to send more questions and comments. :-) :-)
Thank you!