Viewing offline content

Limited functionality available

Dismiss
United States
  • Services

    What's New

    • The Ripple Effect

      Real-world client stories of purpose and impact

    • Register for Dbriefs webcasts

    • We Are Deloitte

      Reimagining how we support our people

    • Tax

      • Mobility and Payroll
      • Reward, Employment Tax, and Equity Compensation Plans
      • Workforce, Technology, and Analytics
      • Tax Services
    • Consulting

      • Core Business Operations
      • Customer & Marketing
      • Enterprise Technology & Performance
      • Human Capital
      • Strategy & Analytics
    • Audit & Assurance

      • Audit Innovation
      • Accounting Standards
      • Accounting Events & Transactions
    • Deloitte Private

    • Mergers & Acquisitions

      • Total M&A Solution
      • Post-merger Integration
      • Divestiture & Separation
    • Risk & Financial Advisory

      • Accounting & Internal Controls
      • Cyber & Strategic Risk
      • Regulatory & Legal
      • Transactions and M&A
    • AI & Analytics

    • Cloud

    • Diversity, Equity & Inclusion

  • Industries

    What's New

    • The Ripple Effect

      Real-world client stories of purpose and impact

    • Register for Dbriefs webcasts

    • Industry Outlooks

      Key opportunities, trends, and challenges

    • Consumer

      • Automotive
      • Consumer Products
      • Retail, Wholesale & Distribution
      • Transportation, Hospitality & Services
    • Energy, Resources & Industrials

      • Industrial Products & Construction
      • Mining & Metals
      • Oil, Gas & Chemicals
      • Power, Utilities & Renewables
    • Financial Services

      • Banking & Capital Markets
      • Insurance
      • Investment Management
      • Real Estate
    • Government & Public Services

      • Defense, Security & Justice
      • Federal health
      • Civil
      • State & Local
      • Higher Education
    • Life Sciences & Health Care

      • Health Care
      • Life Sciences
    • Technology, Media & Telecommunications

      • Technology
      • Telecommunications, Media & Entertainment
  • Insights

    Deloitte Insights

    What's New

    • Deloitte Insights Magazine

      Explore the latest issue now

    • Deloitte Insights app

      Go straight to smart with daily updates on your mobile device

    • Weekly economic update

      See what's happening this week and the impact on your business

    • Strategy

      • Business Strategy & Growth
      • Digital Transformation
      • Governance & Board
      • Innovation
      • Marketing & Sales
      • Private Enterprise
    • Economy & Society

      • Economy
      • Environmental, Social, & Governance
      • Health Equity
      • Trust
      • Mobility
    • Organization

      • Operations
      • Finance & Tax
      • Risk & Regulation
      • Supply Chain
      • Smart Manufacturing
    • People

      • Leadership
      • Talent & Work
      • Diversity, Equity, & Inclusion
    • Technology

      • Data & Analytics
      • Emerging Technologies
      • Technology Management
    • Industries

      • Consumer
      • Energy, Resources, & Industrials
      • Financial Services
      • Government & Public Services
      • Life Sciences & Health Care
      • Technology, Media, & Telecommunications
    • Spotlight

      • Deloitte Insights Magazine
      • Press Room Podcasts
      • Weekly Economic Update
      • COVID-19
      • Resilience
  • Careers

    What's New

    • Our Purpose

      Exceptional organizations are led by a purpose. At Deloitte, our purpose is to make an impact that matters by creating trust and confidence in a more equitable society.

    • We Are Deloitte

      Reimagining how we support our people

    • The Deloitte University Experience

      Explore Deloitte University like never before through a cinematic movie trailer and films of popular locations throughout Deloitte University.

    • Careers

      • Audit & Assurance
      • Consulting
      • Risk & Financial Advisory
      • Tax
      • Internal Services
      • US Delivery Center
    • Students

      • Undergraduate
      • Advanced Degree
      • Internships
    • Experienced Professionals

      • Additional Opportunities
      • Veterans
      • Industries
      • Executives
    • Job Search

      • Entry Level Jobs
      • Experienced Professional Jobs
      • Recruiting Tips
      • Explore Your Fit
      • Labor Condition Applications
    • Life at Deloitte

      • Life at Deloitte Blog
      • Meet Our People
      • Diversity, Equity, & Inclusion
      • Corporate Citizenship
      • Leadership Development
      • Empowered Well-Being
      • Deloitte University
    • Alumni Relations

      • Update Your Information
      • Events
      • Career Development Support
      • Marketplace Jobs Dashboard
      • Alumni Resources
  • US-EN Location: United States-English  
  • Contact us
  • US-EN Location: United States-English  
  • Contact us
    • Dashboard
    • Saved items
    • Content feed
    • Subscriptions
    • Profile/Interests
    • Account settings

Welcome back

Still not a member? Join My Deloitte

Greening the mix: A look at changing energy consumption patterns and emission reduction

by Dr. Rumki Majumdar, Anshu Mittal
  • Save for later
  • Share
    • Share on Facebook
    • Share on Twitter
    • Share on Linkedin
    • Share by email
Deloitte Insights
  • Strategy
    Strategy
    Strategy
    • Business Strategy & Growth
    • Digital Transformation
    • Governance & Board
    • Innovation
    • Marketing & Sales
    • Private Enterprise
  • Economy & Society
    Economy & Society
    Economy & Society
    • Economy
    • Environmental, Social, & Governance
    • Health Equity
    • Trust
    • Mobility
  • Organization
    Organization
    Organization
    • Operations
    • Finance & Tax
    • Risk & Regulation
    • Supply Chain
    • Smart Manufacturing
  • People
    People
    People
    • Leadership
    • Talent & Work
    • Diversity, Equity, & Inclusion
  • Technology
    Technology
    Technology
    • Data & Analytics
    • Emerging Technologies
    • Technology Management
  • Industries
    Industries
    Industries
    • Consumer
    • Energy, Resources, & Industrials
    • Financial Services
    • Government & Public Services
    • Life Sciences & Health Care
    • Tech, Media, & Telecom
  • Spotlight
    Spotlight
    Spotlight
    • Deloitte Insights Magazine
    • Press Room Podcasts
    • Weekly Economic Update
    • COVID-19
    • Resilience
    • US-EN Location: United States-English  
    • Contact us
      • Dashboard
      • Saved items
      • Content feed
      • Subscriptions
      • Profile/Interests
      • Account settings
    18 November 2016

    Greening the mix: A look at changing energy consumption patterns and emission reduction Behind the Numbers, November 2016

    18 November 2016
    • Dr. Rumki Majumdar India
    • Anshu Mittal India
    • Save for later
    • Share
      • Share on Facebook
      • Share on Twitter
      • Share on Linkedin
      • Share by email
    • Introduction
    • For now, energy switches are concentrated in the electric power sector
    • The success story of a few states
    • Moving to renewable energy is achievable, affordable

    A recent fall in US energy-related emission levels has been attributed to changing fuel consumption patterns, primarily toward natural gas. However, while natural gas is “cleaner” than other fossil fuels, it is far less clean than alternates such as renewables. Given how the country still heavily relies on fossil fuels for its energy needs, is the United States really on a path of reduced emissions?

    Introduction

    Explore

    View the Behind the Numbers collection, a monthly series from Deloitte’s economists.

    Recently, the United States made headlines for reporting the lowest carbon-dioxide emissions (2,530 million metric tons) during the first six months of 2016.1 This is the first time since 1991 that emissions have dropped to such low levels in the country. While a mild winter this year, with lower-than-normal heating degree-days, contributed to the decline, the changing fuel consumption mix over the years has also been an important factor, according to the Energy Information Administration.2

    US primary energy consumption mix, 1990–2014

    However, a deeper dive shows that the share of three carbon-emitting fossil fuels—coal, petroleum, and natural gas—in the overall energy consumption mix of the United States has continued to remain above 80 percent during the period from 1991 to 2014.3 Coal and petroleum together continue to be the largest consumed energy sources, although the economy is increasingly substituting coal for natural gas, which is a relatively cleaner source. In contrast, the combined share of cleaner, alternative energy sources (renewables and nuclear) in total energy consumption remained flat until 2007 before it rose by 4 percentage points in the following six years (figure 1) to 18 percent.4

    If fossil fuels have continued to dominate US energy consumption and the reduction in emissions is largely driven by the movement toward natural gas rather than a significant shift toward cleaner and alternative sources energy, how sustainable is the emissions reduction in the long run?

    For now, energy switches are concentrated in the electric power sector

    For a long time, concerns about dependence on imported energy resources and higher emissions of carbon dioxide have led the United States to look for low-carbon, alternative energy sources. Rising income and technology advances, together with political will, have also enabled the economy to develop solutions that can shift energy consumption patterns toward lower carbon sources.

    That said, the feasibility of changing the energy consumption mix toward alternative sources has remained limited due to several factors, such as geographic location, public policies, state of the infrastructure, public awareness, household composition, domestic availability, and the pace of urbanization. Habitual factors, such as ease of use and willingness to pay, and the growing demand for energy, have also played an important role.5 In addition, the use of petroleum is highly concentrated in the transportation sector where alternative energy-based transport options are limited, as yet.

    US renewable energy consumption, 1991–2016 (12-month moving average, British thermal units)

    Since 1990, the only sector that has witnessed a significant change in its energy usage pattern is the electric power sector as low-cost domestic natural gas displaced some coal generation (figure 1) and because of the availability of a direct set of policy instruments to regulators to influence the consumption mix. For example, starting in early 2000, several states began implementing Renewable Portfolio Standards (RPS), which are policies designed to increase electricity generation from renewable resources.6 The United States started witnessing a sturdy growth in renewables usage by 2007 as the impact of the RPS began to be felt, primarily driven by the use of wind and biofuels energy (figure 2).

    The success story of a few states

    Number of US states by fastest growing fuel in their energy mix, 1990–2014

    While a majority of the states are implementing RPS, only a handful of them have noted some success in changing their overall energy consumption mix toward cleaner alternative energy sources. A comparison of the overall energy consumption pattern across each of the 50 US states during 1990–2014 reveals that most of the states mirrored national consumption trends (figure 3). Twenty-nine states preferred to move toward natural gas, which saw the maximum increase in its share relative to other fuels’ shares in those respective states. On the other hand, only 17 US states registered a larger increase in cleaner alternative energy usage versus other fuels in their energy mix. (Even among these states, the quantum of change for some was not significant or the current share of cleaner fuels remained far below the US average.)

    Of these 17 states, 8 stood out in their effort to increase the proportion of renewables in the total energy consumption: South Dakota, Iowa, Vermont, Nebraska, Minnesota, North Dakota, Kansas, and Oklahoma. These states were increasingly substituting fossil fuels with renewables in a proportion higher than the US average because of the availability of natural resources and supportive policies in these states. Additionally, three states—Tennessee, Maryland, and New Hampshire—registered a significant gain in the share of nuclear (figure 4).

    Shift in energy mix by states, 1990–2014

    Surprisingly, four states—Alaska, Arkansas, Missouri, and Hawaii—saw coal’s share gaining the most in their energy mix. These states often face an uncertain supply of alternative fuels, while the lack of infrastructure and geographic location also make it difficult to increase consumption of low-carbon fuels. Evidently, three of these four states—Alaska, Hawaii, and Missouri—also had relatively low economic growth during this period.

    Moving to renewable energy is achievable, affordable, and transformative

    Former vice president and Nobel Peace Prize winner Al Gore once said that the “goal of producing all of the nation’s electricity from renewable energy and truly clean, carbon-free sources …. is achievable, affordable, and transformative."7 It definitely is, but needs to be tackled on a much wider scale. Until now, efforts to reduce emissions through greater adoption of cleaner fuels have been sporadic and limited to certain states or regions. While any change in this direction is welcome, a more uniform, nation-wide commitment toward alternate energy sources is necessary to create a tangible impact.

    With recent technological advances and new distributed energy solutions, the goal of emission reduction seems more attainable. Additionally, supportive market forces, government policies, and the changing future of mobility (proliferation of shared and autonomous vehicles) over the next 10–15 years will most likely help the United States accelerate its move toward cleaner alternative energy sources, and ultimately, sustainable emission reduction. 8

    Credits

    Written By: Dr. Rumki Majumdar, Anshu Mittal

    Acknowledgements

    Andrew Slaughter, managing director, Center for Energy Solutions, Deloitte Services LP

    Daniel Bachman, senior manager, Economics, Deloitte Services LP

    Vivek Bansal, senior analyst, Market Development, Deloitte Services India Pvt. Ltd.

    Endnotes
      1. US Energy Information Administration, Energy-related CO2 emissions for first six months of 2016 are lowest since 1991, October 12, 2016, http://www.eia.gov/todayinenergy/detail.php?id=28312. View in article

      2. Ibid. View in article

      3. State-wise data on energy consumption are available until 2014. View in article

      4. Cleaner alternative sources of energy refer to sources such as nuclear and renewables, which include hydropower, solar, wind, geothermal, biofuels, wood, and waste. View in article

      5. Earl J. Ritchie, “100% renewable energy? Here's why it's not happening anytime soon,” Forbes, http://www.forbes.com/sites/uhenergy/2016/10/27/100-renewable-energy-its-not-happening-anytime-soon/#e94fe8d4a846. View in article

      6. Barry G. Rabe, Race to the top: The expanding role of US states renewable portfolio standards, University of Michigan and Pew Center on Global Climate Change, 2006, http://www.c2es.org/docUploads/RPSReportFinal.pdf. View in article

      7. David Stout, “Gore calls for carbon-free electric power,” New York Times, July 18, 2008, http://www.nytimes.com/2008/07/18/washington/18gorecnd.html. View in article

      8. Scott Corwin, Nick Jameson, Craig A. Giffi, and Joe Vitale, Gearing for change: Preparing for transformation in the automotive ecosystem, Deloitte University Press, September 29, 2016, /content/www/globalblueprint/en/insights/focus/future-of-mobility/future-of-mobility-transformation-in-automotive-ecosystem.html. View in article

    Show moreShow less

    Topics in this article

    Behind the Numbers , Alternative Energy , Energy & Resources

    Deloitte Consulting

    View
    Download Subscribe

    Related

    img Trending

    Interactive 3 days ago

    Dr. Rumki Majumdar

    Dr. Rumki Majumdar

    Director | Deloitte India

    Dr. Rumki Majumdar is a Director and economist with Deloitte India. She writes on several contemporary economic and sector-specific issues related to India with a focus on policy implications on industries such as consumer, financial services, energy and resources, technology, and public services. She has also written on numerous economic issues about the United States and several emerging economies for Deloitte Insights in the past. She currently heads the Client and Insights research team and regularly advises Deloitte India’s executive leadership on Indian economic outlook.

    • rumajumdar@deloitte.com
    • +91 80 6188 5684
    Anshu Mittal

    Anshu Mittal

    Executive Manager | SV Research & Analysis

    Mittal is an Oil & Gas research manager on Deloitte Services LP’s Research & Eminence team. Mittal has close to 12 years of experience in financial analysis and strategic research across all oil and gas subsectors—upstream, midstream, oilfield services, and downstream. Before joining Deloitte in 2005, Mittal worked with Credit Rating Information Services of India Limited, a subsidiary of Standard & Poor’s, as a lead industry researcher in petrochemicals and petroleum sectors.

    • ansmittal@deloitte.com
    • +91 990 854 9995

    Share article highlights

    See something interesting? Simply select text and choose how to share it:

    Email a customized link that shows your highlighted text.
    Copy a customized link that shows your highlighted text.
    Copy your highlighted text.

    Greening the mix: A look at changing energy consumption patterns and emission reduction has been saved

    Greening the mix: A look at changing energy consumption patterns and emission reduction has been removed

    An Article Titled Greening the mix: A look at changing energy consumption patterns and emission reduction already exists in Saved items

    Invalid special characters found 
    Forgot password

    To stay logged in, change your functional cookie settings.

    OR

    Social login not available on Microsoft Edge browser at this time.

    Connect Accounts

    Connect your social accounts

    This is the first time you have logged in with a social network.

    You have previously logged in with a different account. To link your accounts, please re-authenticate.

    Log in with an existing social network:

    To connect with your existing account, please enter your password:

    OR

    Log in with an existing site account:

    To connect with your existing account, please enter your password:

    Forgot password

    Subscribe

    to receive more business insights, analysis, and perspectives from Deloitte Insights
    ✓ Link copied to clipboard
    • Contact us
    • Search jobs
    • Submit RFP
    • Subscribe to Deloitte Insights
    Follow Deloitte Insights:
    Global office directory US office locations
    US-EN Location: United States-English  
    About Deloitte
    • About Deloitte
    • Client stories
    • My Deloitte
    • Deloitte Insights
    • Email subscriptions
    • Press releases
    • Submit RFP
    • US office locations
    • Alumni
    • Global office directory
    • Newsroom
    • Dbriefs webcasts
    • Contact us
    Services
    • Tax
    • Consulting
    • Audit & Assurance
    • Deloitte Private
    • Mergers & Acquisitions
    • Risk & Financial Advisory
    • AI & Analytics
    • Cloud
    • Diversity, Equity & Inclusion
    Industries
    • Consumer
    • Energy, Resources & Industrials
    • Financial Services
    • Government & Public Services
    • Life Sciences & Health Care
    • Technology, Media & Telecommunications
    Careers
    • Careers
    • Students
    • Experienced Professionals
    • Job Search
    • Life at Deloitte
    • Alumni Relations
    • About Deloitte
    • Terms of Use
    • Privacy
    • Privacy Shield
    • Cookies
    • Cookie Settings
    • Legal Information for Job Seekers
    • Labor Condition Applications
    • Do Not Sell My Personal Information

    © 2022. See Terms of Use for more information.

    Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

    Learn more about Deloitte's work for the US Olympic Committee