NY-87-07-5 -- Federal Research and Development on Energy Efficiency: a $50 Billion Contribution to the U.S. Economy ✓ Most Recent

The Reagan Administration’s 1987 budget request for federal energy conservation research and development proposed a 60% cut, on top of previous budget reductions totaling nearly 50% since 1980. The final cut imposed by Congress was 11%, to $152M. The U.S. already spends far less on conservation R&D per unit of energy consumption than most industrialized countries. Further cuts, if implemented, would weaken our national security, cost U.S. consumers billions of dollars in excess energy costs each year -- even with lower oil prices -- and run counter to the administration’s stated goal of reducing the national deficit. This paper explains the compelling economic and security reasons for maintaining federal energy conservation R&D at least at current funding levels.

Units: I-P