Abstract Indiana is missing an opportunity to reduce energy consumption and CO2 emissions. By mandating decoupling, separating profits from total amount sold, for all energy companies, the state can improve energy savings, increase efficiency, create jobs, and bring new energy technology to the state. The Indiana economy can benefit from decoupling while improving our energy and environment habits as well. With climate change becoming more of an issue, decoupling is the first step in getting it under control.

Introduction Energy policy has continued to grow and become a prevalent issue in American society. One reason energy policy is so crucial is because it plays a major role in the global environment. The main way of producing energy in the United States, especially in Indiana, is coal. 1 When coal is burned it releases the greenhouse gas CO2 into the atmosphere, therefore energy policy effects environmental policy. Thomas Friedman and Michael Mandelbaum called the threat of fossil fuels to the planet’s biosphere, through the surge of energy consumption, one of the four major threats facing America today. 2 One energy policy that Indiana should mandate is decoupling. Decoupling will create energy savings, a push for efficiency, and will even have positive spillover effects into other areas of the state economy. Decoupling will help to ensure that Indiana is doing its part, fighting climate change and protecting our environment, most importantly our forests and farmlands that the state is renowned for.

Background Since 1976 the state of California has managed to keep its energy use at the same level per capita, roughly 6,000 kWh. In this same amount of time, the United States energy use per capita has doubled. In 1976, the US started out around 6,000 kWh per capita, in 2005 it was over 12,000 kWh per capita. 3 For the United States this is