This is a good example of how the market can outperform centralized governing councils under certain conditions.
the LEED-certifying body can't possibly hope to know all the 2nd- and 3rd-degree repercussions of different design decisions. But if we just increased the energy tax by 20% (arbitrary number), people would tend to find the global maxima of energy efficiency without having to conform to rigid standards.
The same thing can be seen with cars. I think that raising CAFE standards for gas mileage is great and all, but at least where I'm from the trend toward buying more efficient cars is less about their lower upfront cost as a result of CAFE-induced supply reduction and more about the rising price of gas. A $1.50/gallon federal "negative externalities" tax on gasoline would do wonders for the nation's energy consumption levels.
the LEED-certifying body can't possibly hope to know all the 2nd- and 3rd-degree repercussions of different design decisions. But if we just increased the energy tax by 20% (arbitrary number), people would tend to find the global maxima of energy efficiency without having to conform to rigid standards.
The same thing can be seen with cars. I think that raising CAFE standards for gas mileage is great and all, but at least where I'm from the trend toward buying more efficient cars is less about their lower upfront cost as a result of CAFE-induced supply reduction and more about the rising price of gas. A $1.50/gallon federal "negative externalities" tax on gasoline would do wonders for the nation's energy consumption levels.