The potential for energy efficiency gains in the Canadian commercial building sector: A stochastic frontier study

The achievement of energy efficiency in commercial buildings is a function of the activities undertaken, the technology in place, and the extent to which those technologies are used efficiently. We study the factors that affect efficient energy use in the Canadian commercial sector by applying a stochastic frontier approach to a cross-section of Canadian commercial buildings included in the Commercial and Institutional Building Energy Use Survey (CIBEUS). Structural and climate-control features of the buildings as well as climatic conditions are assumed to determine the location of the frontier, while management-related variables including such factors as ownership type and activities govern whether or not the maximally attainable efficiency along the frontier is achieved. Our results indicate that although, on average, buildings appear to be fairly efficient, certain types of operations are more likely than others to exhibit energy efficiencies that are significantly worse than average. These results, along with those related to the effects of physical characteristics on the stochastic efficiency frontier, suggest that there is scope for focused policy initiatives to increase energy efficiency in this sector.     

Compact fluorescent lighting and residential natural gas consumption: Testing for interactive effects

Replacing incandescent light bulbs with compact fluorescents (CFLs) has traditionally been seen as a cost effective means of promoting energy conservation. Recently, however, the magnitude of energy savings associated with CFLs has been called into question. Specifically, recent findings suggest an “interactive effect” associated with the replacement of incandescent light bulbs with CFLs in the residential sector. In this scenario, the reduced wattage of CFLs, relative to incandescent bulbs, generates less heat, which in turn, requires additional natural gas usage during the heating season. Engineering studies suggest the magnitude of the effect is significant in energy terms, which implies that the energy savings associated with CFLs may be significantly overstated. In this paper, we use billing analysis to test for the presence of interactive effects. Our analysis is based on a comprehensive dataset that includes monthly household electricity and natural gas usage, the number of CFL bulbs installed, the installation date, and a set of household characteristics. Our results suggest that CFLs do indeed save electricity. However, we do not find any support for the hypothesis that CFLs cause increased usage of natural gas.     

Evaluation of the effectiveness of an energy efficiency program for new home construction in eastern North Carolina

This paper reports on the evaluation of the effectiveness of an energy efficiency program in eastern North Carolina. This subject program is focused on improved construction methods for residential housing. The program incorporates proven energy saving technologies, construction procedures, onsite inspections, and design construction methodologies in new residential construction. The analysis compared the energy usage associated with the houses built in conjunction with the energy efficiency program (test group) with similar new residential construction unrelated to the program (control group). Several statistical methods were employed to establish differences between the energy efficiency program participants and the control group. The analysis provides significant support for the effectiveness of this energy efficiency program and supports the suitability of similar efforts for inclusion in plans for renewable energy offsets and energy efficiency standards.     

Quantitative analysis of energy-efficiency strategy on CO2 emissions in the residential sector in Japan – Case study of Iwate prefecture

This study examines the economics of energy-efficiency strategies for reducing CO₂ emissions in the residential sector in Japan from the perspective of regional characteristics. For this study, the residential sector in Iwate prefecture was selected as representative of rural areas in Japan. In order to promote purchases of energy-efficient consumer appliances, the prefectural government is presumed to reimburse purchasers a part of the cost difference between energy efficient and conventional appliances. This paper begins with a discussion of the prefecture’s financial support for purchasers of energy efficient appliances and assumes that the payments come from prefectural government funds. This paper then looks at the effect of a carbon-tax refund on the reduction of CO₂ emissions. The results show that, if half of the households use energy-efficient appliances, then CO₂ emissions in the residential sector in the year 2020 will decreases from the BAU scenario, 0.726 Mt-C to 0.674 Mt-C. However, the Iwate prefectural government expends $105 million annually, which is 1.5% of the total tax revenue in the year 2003. The carbon-tax refund effectively encourages further reductions in CO₂ emissions. Under the $20/tC carbon tax, proposed by the Ministry of the Environment, the carbon-tax refund leads to a reduction in residential CO₂ emissions from 0.726 Mt-C to 0.712 Mt-C.     

Electricity consumption by battery-powered consumer electronics: A household-level survey

The rapid proliferation of battery-powered consumer electronics and their reliance on inefficient linear transformers has been suggested to be an important part of the rapid growth in “miscellaneous” electricity consumption in recent years, but detailed data are scarce. We conducted a survey of 34 randomly selected households (HHs) in Northern California about the number, type, and usage of consumer electronics. We also measured the energy consumption of 85 typical consumer electronic devices through various parts of the charge cycle. These primary data were supplemented by national sales information for consumer electronics. Results indicate that typical HHs own 8.4 rechargeable devices, which have a total average demand of 12–17 W per HH. Statewide, this amounts to 160–220 MW of demand, with the peak occurring in the late evening, and about 1600 GWh per year. Only about 15% of this energy is used for battery charging, the rest is lost as waste heat during no-load and charge maintenance periods. Technical options to increase the efficiency of these devices, and the research and policy steps needed to realize these savings are discussed.     

The exogenous factors affecting the cost efficiency of power generation

This paper employs a stochastic frontier analysis (SFA) to examine cost efficiency and scale economies in Taiwan Power Company (TPC) by using the panel data covering the period of 1995–2006. In most previous studies, the efficiency estimated by the Panel Data without testing the endogeneity may bring about a biased estimator resulting from the correlation between input and individual effect. A Hausman test is conducted in this paper to examine the endogeneity of input variables and thus an appropriate model is selected based on the test result. This study finds that the power generation executes an increasing return to scale across all the power plants based on the pooled data. We also use installed capacity, service years of the power plant, and type of fuel as explanatory variable for accounting for the estimated cost efficiency of each plant by a logistic regression model to examine the factor affecting the individual efficiency estimates. The results demonstrate that the variable of installed capacity keeps a positive relationship with cost efficiency while the factor of working years has a negative relationship.     

On policy instruments for support of micro combined heat and power

The performance of residential micro combined heat and power (micro-CHP)—a technology to provide heat and some electricity to individual dwellings—is generally dependent on the magnitude of household thermal energy demand. Dwellings with larger and more consistent thermal consumption perform well economically and achieve greater greenhouse gas emissions savings. Consequently, the performance of micro-CHP is dependent on the level of thermal insulation in a dwelling. Therefore, emerging policy approaches regarding energy use in the residential sector, which generally support both energy efficiency measures such as thermal insulation and adoption of micro-CHP, may inadvertently incentivise micro-CHP installation where CO₂ reductions are meagre or not cost-effective. This article examines this issue in terms of the changes in economic and environmental performance that occur for three micro-CHP technologies under changing patterns of residential thermal insulation in the United Kingdom. The results of this analysis are used to comment on the structure of policy instruments that support micro-CHP. It is found that simultaneous support for energy efficiency measures and micro-CHP can be justified, but care must be taken to ensure that the heat-to-power ratio and capacity of the micro-CHP system are appropriate for the expected thermal demand of the target dwelling.     

Assessment of energy savings from the revised building energy code of Thailand

The government of Thailand legislated an Energy Conservation Promotion Act (ECP Act) in 1992 and set bye-laws that identify designated buildings (DBs) and detail mandatory requirements for energy conservation for DBs in 1995. An Energy Conservation Promotion Fund (ENCON Fund) was also created to fund energy audits on 1900 DBs. Recently the requirements and procedures for energy conservation in buildings have been revised where system performance requirements for building envelope, lighting, air-conditioning, and hot water generation are adopted. Moreover, the new building energy code (BEC) distinguishes different categories of DBs, provides credit for use of solar energy, and introduces a new option of whole building energy compliance. The authors develop building models from data obtained from energy audit reports and use them to estimate savings on energy and peak demand from future new buildings using forecasted energy and peak demand data from the Load Forecast Subcommittee, a panel tasked to forecast future electric load of Thailand. From a modest level of energy saving in the first year that the code is expected to be enforced, the level of saving rise to over 10% and 20% annually of requirement of target buildings in 6 and 12 years respectively.     

The potential estimation and factor analysis of China′s energy conservation on thermal power industry

At present, researches about energy conservation are focused on prediction. But there are few researches focused on the estimation of effective input and energy conservation potential, and there has been even no research on energy conservation of thermal power industry of China. This paper will try to fill in such a blank. Panel data on Chinese thermal power industry over 2005–2010 are established, and we adopt the stochastic frontier analysis approach to estimate the energy saving potential of thermal power industry. The results are as follows: (1) the average efficiency of energy inputs in China′s thermal power industry over 2005–2010 was about 0.85, and cumulative energy saving potential equals to 551.04 (Mtce); (2) by improving the non-efficiency factors, the relatively backward inland cities could achieve higher energy saving in thermal power industry; (3) the energy input efficiency of Eastern China Grid is shown to be the highest; (4) in order to realize the energy-saving goal of thermal power industry, one important policy method the government should adopt is to conduct a market-oriented reform in power industry and break the state-owned monopoly to provide incentives for private and foreign direct investment in thermal power sector.     

The aging US population and residential energy demand

This piece explores the relationships between a rapidly aging U.S. population and the demand for residential energy. Data indicate that elderly persons use more residential energy than younger persons. In this time of steeply rising energy costs, energy is an especially important financial issue for the elderly with low and/or fixed incomes. As the absolute number of elderly as well as their proportion of the total US population both continue to increase, energy and the elderly population looms as another energy policy challenge.     

Improved technical efficiency and exogenous factors in transportation demand for energy: An application of structural time series analysis to South Korean data

This paper stresses the importance of incorporating the effects of improved technical efficiency and exogenous factors when estimating energy demand functions. Using annual time series data for the period 1973–2007 in the STSM (structural time series model) developed by Harvey et al. [26] the paper estimates price and income elasticities of demand for energy as well as the annual growth of the stochastic trend at the end of the estimation period. The results of the study reveal a long-run income elasticity of 1.37 and a price elasticity of −0.19. In addition, the underlying trend is generally stochastic and negatively sloping during the greater part of the estimation period. Finally, the estimated result from the structural time series is compared with the results from the Johansen Cointegration. These results suggest that income is the dominant factor in energy consumption. In addition, the coefficient of linear trend is negative, supporting the results from the STSM.     

Modeling global residential sector energy demand for heating and air conditioning in the context of climate change

In this article, we assess the potential development of energy use for future residential heating and air conditioning in the context of climate change. In a reference scenario, global energy demand for heating is projected to increase until 2030 and then stabilize. In contrast, energy demand for air conditioning is projected to increase rapidly over the whole 2000–2100 period, mostly driven by income growth. The associated CO₂ emissions for both heating and cooling increase from 0.8 Gt C in 2000 to 2.2 Gt C in 2100, i.e. about 12% of total CO₂ emissions from energy use (the strongest increase occurs in Asia). The net effect of climate change on global energy use and emissions is relatively small as decreases in heating are compensated for by increases in cooling. However, impacts on heating and cooling individually are considerable in this scenario, with heating energy demand decreased by 34% worldwide by 2100 as a result of climate change, and air-conditioning energy demand increased by 72%. At the regional scale considerable impacts can be seen, particularly in South Asia, where energy demand for residential air conditioning could increase by around 50% due to climate change, compared with the situation without climate change.     

Weather, the estimation of residential energy demand relationships and the reporting of data

The need for adjusting energy related data, especially weather data, prior to estimating demand relationships is pointed out. A previous study by Rushdi in Energy Economics and other studies are used as examples. The lack of such adjustments could affect greatly the estimated results. The desirability of making data available along with an article is also pointed out.     

A method of identifying and weighting indicators of energy efficiency assessment in Chinese residential buildings

This paper describes a method of identifying and weighting indicators for assessing the energy efficiency of residential buildings in China. A list of indicators of energy efficiency assessment in residential buildings in the hot summer and cold winter zone in China has been proposed, which supplies an important reference for policy makings in energy efficiency assessment in buildings. The research method applies a wide-ranging literature review and a questionnaire survey involving experts in the field. The group analytic hierarchy process (group AHP) has been used to weight the identified indicators. The size of survey samples are sufficient to support the results, which has been validated by consistency estimation. The proposed method could also be extended to develop the weighted indicators for other climate zones in China.     

Residential conservation incentives

This article analyses existing knowledge of consumer response to conservation incentives for energy efficiency. It criticizes the treatment of incentive effects in existing energy demand models and reviews the literature on three questions that have been given insufficient attention in formal analyses of energy demand: How does the size of an incentive affect energy users' responses? Are different types of incentives (eg, rebates, loans, grants) perceived differently even when they have the same economic value? What non-financial features of financial incentive programmes influence their effectiveness? Finally, it discusses approaches to resolving such questions.     

Medium-term energy outlook for Cyprus and its policy implications

This short paper presents results from an energy forecast model for the Republic of Cyprus. The model was used during years 2010–2011 to assist national authorities in their preparation of the National Renewable Energy Action Plan and the Energy Efficiency Action Plan of Cyprus in line with the requirements of European Union Directives. Major macroeconomic and price assumptions of the model are presented, and results from model application under different assumptions with regard to the evolution of energy efficiency are outlined and discussed. On the basis of these scenarios the paper discusses policy implications for Cyprus regarding the country's compliance with EU energy and climate legislation.     

Comparison of neural network,conditional demand analysis,and engineering approaches for modeling end-use energy consumption in the residential sector

This paper investigates the use of conditional demand analysis (CDA) method to model the residential end-use energy consumption at the national level. There are several studies where CDA was used to model energy consumption at the regional level; however the CDA method had not been used to model residential energy consumption at the national level. The prediction performance and the ability to characterize the residential end-use energy consumption of the CDA model are compared with those of a neural network (NN) and an engineering based model developed earlier. The comparison of the predictions of the models indicates that CDA is capable of accurately predicting the energy consumption in the residential sector as well as the other two models. The effects of socio-economic factors are estimated using the NN and the CDA models, where possible. Due to the limited number of variables the CDA model can accommodate, its capability to evaluate these effects is found to be lower than the NN model.     

Analysis of residential energy use

The structure, inputs, validation and operation of a residential energy use model are examined with the intention of providing an analytical tool for evaluation of energy conservation option for effects on energy use and related costs.