Why does real-time information reduce energy consumption?

A number of studies have estimated how much energy conservation is achieved by providing households with real-time information on energy use via in-home displays. However, none of these studies tell us why real-time information changes energy-use behavior. We explore the causal mechanisms through which real-time information affects energy consumption by conducting a randomized-control trial with residential households. The experiment attempts to disentangle two competing mechanisms: (i) learning about the energy consumption of various activities, the “learning effect”, versus (ii) having a constant reminder of energy use, the “saliency effect”. We have two main results. First, we find a statistically significant treatment effect from receiving real-time information. Second, we find that learning plays a more prominent role than saliency in driving energy conservation. Our findings support the use of energy conservation programs that target consumer knowledge regarding the energy use of different devices and activities.     

Do household energy expenditures affect mortgage delinquency rates?

We postulate a direct role for energy prices in the 2008 financial crisis. Rising energy prices constrain consumer budgets and thereby raise mortgage delinquency rates. This hypothesis is tested by estimating a quarterly cointegrating vector autoregressive (CVAR) model that seeks to quantify the factors that influence the percentage of US mortgages that are 30 to 89 days past due and those that enter foreclosure. Results identify a long-run relationship for the percentage of US mortgages that are 30 to 89 days past due that includes the interest rate on one-year adjustable mortgages, household expenditures on energy, nominal home prices, rates of home ownership, and the fraction of mortgages 90 days or more past due that enter foreclosure—unemployment rates have a short-run effect. Together, these variables account for much of the historical variation in the percentage of US mortgages that are 30 to 89 days past due and indicate that the post 2006 rise in this measure of mortgage delinquency is associated with falling home prices, an increase in household expenditures on energy, and rising unemployment.     

Feedback on household electricity consumption: a tool for saving energy?

Improved feedback on electricity consumption may provide a tool for customers to better control their consumption and ultimately save energy. This paper asks which kind of feedback is most successful. For this purpose, a psychological model is presented that illustrates how and why feedback works. Relevant features of feedback are identified that may determine its effectiveness: frequency, duration, content, breakdown, medium and way of presentation, comparisons, and combination with other instruments. The paper continues with an analysis of international experience in order to find empirical evidence for which kinds of feedback work best. In spite of considerable data restraints and research gaps, there is some indication that the most successful feedback combines the following features: it is given frequently and over a long time, provides an appliance-specific breakdown, is presented in a clear and appealing way, and uses computerized and interactive tools.

Do undesirable output and environmental regulation matter in energy efficiency analysis? Evidence from Indian Cement Industry

Energy use in the production of desirable output often results in the generation of undesirable emission with detrimental impact on the environment, and whose disposal is frequently monitored by public authorities. Previous studies, however, paid little attention to undesirable output and environmental regulation related to its disposal while estimating energy use efficiency. Analysis of energy efficiency ignoring undesirable output could result in biased estimates of efficiency. Thus the aim of this paper is to estimate energy use efficiency in the presence of energy related undesirable emission by taking Indian cement industry as a suitable context of my analysis. Depending on the presence and absence of undesirable output and environmental regulation, three measures of efficiency have been estimated at the state level from 2000–01 to 2004–05 by applying Data Envelopment Analysis. Energy efficiency is defined as the ability of the producer to reduce the energy input to the largest extent possible, conditional on the given level of output and non-energy inputs. Empirical results reveal that energy efficiency estimates are biased if only desirable output is considered. Results also demonstrate that environmental regulation has a reinforcing effect on energy use efficiency.     

Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption

This study examines the link between foreign direct investment (FDI) and energy demand. FDI is a source of financing that allows businesses to grow. At the same time, FDI can be a source of innovation that promotes energy efficiency. Existing evidence on the impact of aggregate FDI inflows on energy consumption is scarce and inconclusive. In the current study, we disaggregate FDI inflows into mining, manufacturing, total services, and financial services components and examine the impact of these FDI flows on renewable – and non-renewable industrial energy – sources for 74 countries for the period 1985–2012. We employ a Blundell–Bond dynamic panel estimator to control for endogeneity and omitted variable biases in our panels. The results point broadly to an energy consumption-reducing effect with respect to non-renewable sources of energy and an energy consumption-augmenting effects with respect to renewable energy. We find that these effects vary in magnitude and significance by sectoral FDI.     

LMDI decomposition analysis of energy consumption in Andalusia (Spain) during 2003–2012: the energy efficiency policy implications

The aim of this paper is to analyse the changes in final energy consumption in Andalusia through logarithmic mean Divisia index (LMDI) decomposition analysis during the period 2003–2012. The results lead us to conclude that a reduction of final energy (FE) consumption of 1 % took place as a result of a diminishing in structural effect by 11 % and an increase in the activity effect and intensity effect by 7.4 and 3.5 %, respectively. Chain-linked LMDI decomposition shows the existence of two sub-periods, with a turning point in 2008. The first period, coinciding to a great extent with the Andalusian Energy Plan 2003–2006 (PLEAN), showed an increase in final energy consumption, mostly due to the activity effect but also to the intensity effect. The second period, coinciding with the implementation of the Andalusian Sustainable Energy Plan 2007–2013 (PASENER), shows a reduction in the activity, structure and intensity effects. The results allow us to conclude that many of the energy efficiency measures, implemented through the PASENER, are related to sectors that experienced a decline in energy consumption due to the intensity effect, such as transport, primary and service sectors. Additionally, although they were included in PASENER, more policy attention should be given to the energy transformation, residential and industrial sectors which increased the demand for energy due to the intensity effect during this period. Finally, the energy-saving behaviour of economic agents due to the economic downturn should also be considered as an explanation for the diminishing in energy consumption during this sub-period.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

Economic growth,urbanization and energy consumption — A provincial level analysis of China

As the largest developing country, with fast-paced economic growth, China's development has been characterized by a high degree of energy consumption, high level of heavy industry, international trade and urbanization progress. In this study, we extend the current literature by incorporating urbanization, energy consumption and international trade into a production function using a panel data set model over the period from 2001 to 2012. The results show that urbanization and capital are the major contributors to China's economic growth. Meanwhile, there exists a “U-shaped” relationship between urbanization and economic growth; that heavy industry exerts a significant negative effect on economic growth using system generalized methods of moments (GMM-sys) estimation methods; and the relationship between international trade and economic growth is mixed and no consistent results support the conclusion that the international trade promotes economic growth. Adjusting the industry and trade structure in economic growth is the priority for the policy makers.     

Towards a sustainable energy scenario? A worldwide analysis

This paper studies the worldwide evolution of energy intensity for a large sample of countries during the period 1990–2015, differentiating between non-renewable, non-clean and total energy intensity. This division allows us to establish more precise policy recommendations which, along with the use of the Phillips and Sul (2009) methodology, provides the novelty of the analysis. Our results refute recent evidence favouring the hypothesis of global convergence for all types of energy intensity. Grouping countries either by regions or by income level, the evidence against this hypothesis remains overwhelming, with very few exceptions. Nonetheless, we can observe the presence of several convergence clubs, whose creation strongly depends on energy prices as well as on external energetic dependency. In any event, results relating to the different types of energy intensity are varied, suggesting that previous policy recommendations aimed at tackling climate change based on total energy intensity analyses are questionable.     

Insurmountable opportunities? Canada's energy efficiency resources

We review the potential for increased energy efficiency in Canada. Following discussion of the theoretical and conceptual basis for treating energy efficiency as a resource, the potential for increased efficiency is assessed in three categories: resource base (the maximum physical potential), ultimate recoverable resources (the maximum technical potential), and proven resources (cost-effective and technically available efficiency increases). The resulting estimates are compared with estimates from a companion paper, in which we assess energy-supply resources using the same set of categories. The policy implications of both sets of estimates are discussed.     

What do people living in deprived communities in the UK think about household energy efficiency interventions?

While physical interventions such as external wall cladding can improve the energy efficiency of domestic properties, how residents think about and respond to such interventions can influence both their uptake and impact on the household’s energy use. The present research investigated what residents living within deprived communities in Yorkshire and the Humber (United Kingdom) thought about a number of household energy efficiency interventions proposed as part of a project known as “The BIG Energy Upgrade”. The Theory of Planned Behaviour was used as a framework for investigating residents' beliefs. Residents generally felt positive about the proposed interventions and expected that they would lead to financial savings, improve the appearance and warmth of their homes, and sense of pride in the local community. However, while residents intended to adopt energy efficiency interventions if offered them, they were less willing to personally invest in them. Home ownership and the belief in humans' ability to tackle climate change were found to predict willingness to invest. These findings help to understand responses to initiatives that seek to improve the energy efficiency of hard-to-treat homes.     

Does energy efficiency save energy? The debate and its consequences

This paper considers the debate in the UK and the USA on some economists' claims that improving energy efficiency will lead to a greater energy consumption (than would have otherwise occurred), a concept termed the Khazzoom–Brookes postulate. It analyses the criticisms of this claim and of the responses, particularly of the concept of ‘dematerialization’. The paper attempts to tackle the paucity of empirical evidence in the UK by looking at long-term trends in efficiency and use with respect to UK public lighting. Finally, it focuses on the views of two economists, namely Len Brookes and William Rees, who both accept the postulate but have differing views and policies on measures to reduce carbon emissions from fossil fuels. Brookes believes in free-market solutions, whereas Rees puts forward a vision of a sustainable future based on ecological tax-reform and reafforestation.     

Do vehicle efficiency improvements lead to energy savings? The rebound effect in Great Britain

Fuel efficiency improvements in vehicles reduce the cost of travel, which could stimulate drivers to travel further limiting energy savings. Estimates of this effect, known as the rebound effect, have varied widely, partly due to data constraints and a reliance upon highly aggregated government statistics. This paper instead uses a dataset of over 275 million vehicle roadworthiness tests. The high level of detail in our dataset can reveal, for the first time, how the response to changes in travel costs may differ across types of vehicles and socio-economic areas in Great Britain.We find that the rebound effect in Great Britain is just 4.6%, meaning efficiency improvements are unlikely to stimulate increased mileage in the short-run. We find that larger, less fuel efficient vehicles are more responsive to fuel price changes than smaller vehicles and that drivers in urban areas are more responsive to fuel price changes than drivers in rural areas. Our findings shed light on the effects that policies such as fuel taxation and fuel economy standards may have on vehicle mileage. This has implications for both CO₂ emissions savings and social equity.     

Capturing energy efficiency in European iron and steel production—comparing specific energy consumption and Malmquist productivity index

European iron and steel producers are working towards increased energy efficiency to meet requirements set by European policies such as the Energy Efficiency Directive. In this study, we show that the specific energy consumption (SEC), representing the iron and steel sector in the Odyssee energy efficiency index (ODEX)—the tool for policy evaluation recommended by the European Commission—is insufficient for capturing energy efficiency trends of European iron and steel production. European producers focus on niche markets, diversifying and specialising their set of products well beyond crude steel, which is the benchmark product for deriving the SEC. We compare the SEC with the more comprehensive Malmquist productivity index (MPI) methodology, which is calculated using data envelopment analysis (DEA) techniques. An evaluation of energy efficiency trends during 2000–2010 showed that the SEC overestimated energy efficiency improvements for European steel industries, while underestimating the improvements achieved by Swedish steel industries. A comparison between the SEC, the MPI/DEA approach, and energy intensity based on value added in the Swedish case provides further insight to the methodological differences between the approaches. We conclude that the approaches highlight different aspects of energy efficiency analyses and that the SEC is not sufficient for capturing the energy efficiency of steel industries.     

The economy-wide rebound effect from improved energy efficiency in Swedish industries–A general equilibrium analysis

The objective of this paper is to analyse the rebound effect from increased efficiency in industrial energy use in Sweden. Energy efficiency improvements can have significant micro- and macroeconomic effects that hamper the positive effect on real energy savings. To assess the size of the overall rebound effect in the Swedish economy, we apply a computable general equilibrium model. The results show that the economy-wide rebound effect depends on a number of factors, e.g. the extent of the energy efficiency improvement, how the labour market is modelled as well as whether the increase in energy efficiency is combined with a cost or not. We find that the rebound effect following a five per cent increase in energy efficiency in the Swedish industry lies in the 40–70 per cent range. When energy efficiency is only improved in energy-intensive production, the rebound effect becomes even higher. These findings are in line with the results in the literature.     

Does market-based electricity price affect China's energy efficiency?

China is in a critical period of market-oriented reform and energy transition. As a crucial means to regulate supply and demand under the market-oriented mechanism, the electricity price can promote the development of energy efficiency by optimizing resource allocation. With the gradual increase in electricity consumption, the influence of its price on energy consumption is also gradually enhanced. Therefore, this paper evaluated the process of electricity price marketization and conducted a spatial-temporal comparative analysis of the effect of electricity price on energy efficiency by controlling economic, policy, and other price factors. The results show that: (1) the marketization degree of China's electricity price has improved with steady steps; (2) market-oriented electricity price has a stable positive correlation with energy efficiency in both the short and long term; (3) marketization improves the promotion effect of electricity price on energy efficiency, and the influence of electricity price is more significant in the eastern region with a high degree of marketization and the subsequent stage; (4) the impact of market-oriented electricity price on energy efficiency is asymmetric. The impulse response under positive and negative shock is opposite, and under the positive shock, the response time is longer, and the degree is greater.     

Can foreign direct investment harness energy consumption in China? A time series investigation

This study assesses the long-run relationship and short-run dynamics between foreign direct investment (FDI) and energy consumption in China. Applying the bounds testing approach to annual data from 1982 to 2012, we find that a stable FDI–energy nexus exists in the long run and a 1% increase in FDI reduces energy consumption by 0.21%. However, this study shows a positive association between FDI and energy consumption in the short run, attributing to the dominance of the scale effect. Our results remain robust to different measurements and estimators. It is suggested that the Chinese government shall support the inward FDI in the tertiary and energy sectors and strengthen local absorptive capacities to fully internalize FDI-related knowledge spillovers in energy conservation.     

Does energy efficiency increase with orchard size? A case study from peach production

The aim of this study was to explain the relationship between orchard size and energy efficiency in the case of peach production carried out by households. The data were obtained from 118 peach orchards that were classified into four groups, including orchards less than 0.5, 0.5–1.0, 1.0–2.0 and larger than 2.0 ha, by using stratified random sampling method. The total energy requirement for peach production on average was 36,284.51 MJ ha^?1. Total energy input use decreases as orchard size increases; however, it is minimal in group III. Fertilizer energy was the largest energy input, followed by diesel oil and pesticides for all groups.     

CO2 emissions from household consumption in India between 1993–94 and 2006–07: A decomposition analysis

CO₂ emission from anthropogenic activities is one of the major causes of global warming. India being an agriculture dependent country, global warming would mean monsoon instability and consequent food scarcity, natural disasters and economic concerns. However with proper policy interventions, CO₂ emissions can be controlled. Input–output analysis has been used to estimate direct and indirect CO₂ emissions by households for 1993–94, 1998–99, 2003–04 and 2006–07. Complete decomposition analysis of the changes in CO₂ emissions between 1993–94 and 2006–07 has been done to identify the causes into pollution, energy intensity, structure, activity and population effects according to broad household consumption categories. Results indicate that activity, structure and population effects are the main causes of increase in CO₂ emission from household fuel consumption. To identify the causes at the sectoral level a second decomposition has been done for changes between 2003–04 and 2006–07 to identify the causes in the next stage. Finally alternative energy policy options have been examined for each consumption category to reduce emissions. Combined strategies of technology upgradation, fuel switching and market management in order to reduce CO₂ emissions for sectors like Batteries, Other non-electrical machinery, Construction and Electronic equipments (including Television), for which all the effects are positive, need to be adopted.     

Food transport refrigeration – Approaches to reduce energy consumption and environmental impacts of road transport

Food transport refrigeration is a critical link in the food chain not only in terms of maintaining the temperature integrity of the transported products but also its impact on energy consumption and CO₂ emissions. This paper provides a review of (a) current approaches in road food transport refrigeration, (b) estimates of their environmental impacts, and (c) research on the development and application of alternative technologies to vapour compression refrigeration systems that have the potential to reduce the overall energy consumption and environmental impacts. The review and analysis indicate that greenhouse gas emissions from conventional diesel engine driven vapour compression refrigeration systems commonly employed in food transport refrigeration can be as high as 40% of the greenhouse gas emissions from the vehicle’s engine. For articulated vehicles over 33 ton, which are responsible for over 80% of refrigerated food transportation in the UK, the reject heat available form the engine is sufficient to drive sorption refrigeration systems and satisfy most of the refrigeration requirements of the vehicle. Other promising technologies that can lead to a reduction in CO₂ emissions are air cycle refrigeration and hybrid systems in which conventional refrigeration technologies are integrated with thermal energy storage. For these systems, however, to effectively compete with diesel driven vapour compression systems, further research and development work is needed to improve their efficiency and reduce their weight.