Inclusion-Exclusion to Count Bad Strings
To count the number of bit strings with $2$ consecutive one bits (bad strings), I would let
$$
\begin{align}
S_1&=11xx&4\\
S_2&=x11x&4\\
S_3&=xx11&4\\
N_1&=&12
\end{align}
$$
Then
$$
\begin{align}
S_1\cap S_2&=111x&2\\
S_1\cap S_3&=1111&1\\
S_2\cap S_3&=x111&2\\
N_2&=&5
\end{align}
$$
and
$$
\begin{aligned}
S_1\cap S_2\cap S_3&=1111&1\\
N_3&=&1
\end{aligned}
$$
The count of bad strings is $N_1-N_2+N_3=8$.
The count of good strings is $16-8=8$.
Generating Functions
Let $x$ represent the atom '$0$' and $x^2$ represent the atom '$10$' and build all possible strings by concatenating one or more atoms and removing the rightmost '$0$'.
$$
\begin{align}
\overbrace{\vphantom{\frac1x}\ \ \ \left[x^4\right]\ \ \ }^{\substack{\text{strings of}\\\text{length $4$}}}\overbrace{\ \quad\frac1x\ \quad}^{\substack{\text{remove the}\\\text{rightmost '$0$'}}}\sum_{k=1}^\infty\overbrace{\vphantom{\frac1x}\left(x+x^2\right)^k}^\text{$k$ atoms}
&=\left[x^4\right]\frac{1+x}{1-x-x^2}\\
&=\left[x^4\right]\left(1+2x+3x^2+5x^3+8x^4+13x^5+\dots\right)\\[9pt]
&=8
\end{align}
$$
Note that the denominator of $1-x-x^2$ induces the recurrence $a_n=a_{n-1}+a_{n-2}$ on the coefficients.
Recurrence
Good strings of length $n$ can be of two kinds: a good string of length $n-1$ followed by '$0$' or a good string of length $n-2$ followed by '$01$'. That is,
$$
a_n=a_{n-1}+a_{n-2}
$$
Starting with
$a_0=$ the number of good strings of length $0=1$.
$a_1=$ the number of good strings of length $1=2$.
we get $a_4=8$.