Conservation Saves Money and Energy

In the New York Times for March 29, Thomas L. Friedman cited Hal Harvey of 'Climate Works'. Harvey's five proven policies to fight climate change are:

1. energy-efficient building and appliance codes
2. better vehicle fuel-efficiency standards
3. utilities to produce 15-20% energy from renewables by 2020
4. decoupling (utilities make money by helping homeowners save energy, rather than use it)
5. carbon tax

Clearly nos. 1,2,4, and 5 are conservation. Only 3 is alternative energy. Since a conference reported in MIT Energy Weekly noted that conservation is cheaper than alternative energy, Harvey seems to be making sense.