The United States is actively involved in various areas related to the global transition to cleaner energy, including training corporate advocates and funding research and development into clean-burning fuels. However, while many believe that US ingenuity could help solve climate-related challenges, some caution that the country should not follow the example of high energy consumption, which is currently 3.5 times the global average and more than double the European average. Power generation accounts for 25% of domestic emissions in 2021, second only to transportation. As electric vehicles become more popular and factories switch to cleaner energy sources, power demand is likely to increase, leading to continued reliance on fossil fuels despite efforts to reduce emissions.
One driver of America’s high energy consumption is its preference for single-family homes, which make up about 62% of the housing stock. Heating and cooling these homes is less efficient than in large multi-family buildings. Tax credits and efficiency standards aim to improve building efficiency, but the high cost of living and household spending in the country may slow these efforts. In contrast, other countries have a preference for multi-family housing, making it easier to enable building upgrades and reduce electricity consumption.
If the world were to adopt American-style housing, electricity demand levels could quickly double, undermining efforts to curb total energy production and associated emissions. Therefore, it is crucial to find solutions to increase energy efficiency and reduce consumption, particularly in the residential sector.