The cost of conserved energy (CCE) and its extension, supply curves of conserved energy, are useful tools for investigating the technical potential and economics of energy conservation measures. The CCE is an investment metric that is well suited for analysis of energy conservation investments, and the supply curve approach provides a bookkeeping framework that is ideal for diverse conservation investments. Several people, including Amory Lovins, John Sawhill, and Arthur Rosenfeld, independently developed the general approach in the late 1970s. However, Alan Meier, along with Janice Wright and Arthur Rosenfeld, systematized the concepts and procedures in the early 1980s. This article introduces the cost of conserved energy and supply curves of conserved energy, and explains their application to energy-efficiency issues.

The Cost of Conserved Energy

Energy conservation typically involves making an investment that results in lower energy running costs. An investor (or policymaker) is often...