3FOOD

Third Industrial Revolution Consulting Group
overlooked component of the economic process—that may prove to be the more critical driver
of economic and social well-being. To extend our example above, a software engineer cannot
develop code without electricity to power the computer. The truck driver cannot deliver a
replacement part without the diesel fuel to power the truck engine. When optimally sourced
and efficiently used, energy can amplify local economic development and spawn a more robust
and resilient economy. But equally true, the wrong mix of those resources, and especially the
inefficient use of those resources, can appreciably constrain the vitality of a local or national
economy.
In 2016, the Grand Duchy of Luxembourg will spend an estimated €2 billion to meet its
combined energy needs. The many payments made each day or each month will enable
residents to cool and light their homes, drive to work, listen to music or watch TV, and power
the country’s many commercial enterprises. Electricity purchases, for example, will further
enable access to the Internet, as well as filter and purify the water that is delivered to local
homes, schools, and businesses every day.
Although the inhabitants of Luxembourg derive many important benefits as they pay their
various energy bills, there is also a significant opportunity to save money. As we will outline
later, those energy bill savings—perhaps an average of €250 million per year over the next
three decades—will reduce the massive amounts of greenhouse gases and other pollutants that
are released into the air. According to a recent study by Stanford University, if Luxembourg
were to achieve 100 percent renewable energy by 2050, the avoided air quality health effects
might be on the order of €3.04 billion per year. Moreover, the avoided 2050 global climatechange
costs from converting to 100 percent renewable energy is on the order of €3.84 billion
per year. 365
There is little question that the production and use of energy holds great economic value for
Luxembourg. Many renewable energy industries are growing exponentially. This is driving a
positive market throughout the global economy. But as the International Energy Agency (IEA)
underscores, there is also a critical need for greater emphasis on energy efficiency as well as a
more diversified energy portfolio. The IEA further noted that the inefficient conversion of
energy can create a large array of problems which can weaken or constrain the development of
365 Mark Z. Jacobson, Mark A. Delucchi, et al. (April 2016). 100% Clean and Renewable Wind, Water, and Sunlight (WWS)
All-Sector Energy Roadmaps for 139 Countries of the World. Department of Civil and Environmental Engineering,
Stanford University. https://web.stanford.edu/group/efmh/jacobson/Articles/I/CountriesWWS.pdf. Note that the
original values reported here were originally expressed in 2013 US dollars. Those values were converted to Euros using a
2013 exchange rate of 1.328 USD per Euro.
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