Lacking information about energy use, people tend to overestimate the

Nope. "It" is wrong here.

There's a really nice, clean division of labor here between the 'standard' (not expressly for comparisons) pronouns "it"/"they" and the comparison-specific pronouns "that"/"those".

Specifically:

• "IT"/"THEY" stands for a noun WITH ALL attached modifiers/descriptors/context from its original appearance.

• "THAT"/"THOSE" stands for a noun with NONE or SOME, but NOT ALL, attached modifiers/descriptors/context from its original appearance.


Here are some paired examples to help you understand:

#1 The definition of gross domestic product (GDP), perversely, places a value on domestic labor outsourced to maids or nannies but not when it is performed by members of the household.
—> INCORRECT
"It" would have to stand for the entire underlined phrase above, consisting of "domestic labor" plus the attached modifier "outsourced to maids or nannies".
That's nonsense, because the resulting sentence contradicts itself—talking about domestic labor that's 'outsourced' to non-household members yet somehow still performed by household members.

#2The definition of gross domestic product (GDP), perversely, places a value on domestic labor outsourced to maids or nannies but not on that performed by members of the household.
—> CORRECT
To stand for "domestic labor" WITHOUT the attached descriptive modifier "outsourced to maids or nannies", we need the comparison pronoun "THAT"—which exists expressly to do this exact job!


#3 The definition of gross domestic product (GDP), perversely, places a value on domestic labor when it is outsourced to maids or nannies but not when it is performed by members of the household.
—> CORRECT
"Domestic labor" does not have any additional modifiers attached to it. So, "it" is just "domestic labor".

#4 The definition of gross domestic product (GDP), perversely, places a value on domestic labor when it is outsourced to maids or nannies but not when that is performed by members of the household.
—> INCORRECT
The comparison pronoun "that" can ONLY be used if some description is LEFT OFF the noun.


Note that these two types of pronouns have roles that are mutually exclusive. If "it" works, then "that" is wrong. If "that" works, then "it" is wrong. The same is true for "they/them" and "those" respectively.