An empirical analysis of energy efficiency in China''s iron and steel sector

Using Malmquist Index Decomposition, this paper investigates energy efficiency of China's iron and steel sector during the period 1994–2003. Provincial panel data is employed, allowing various energy inputs and product outputs. The energy efficiency improvement is decomposed into two components: technical change (production frontier shifting effect) and technical efficiency change (catching up effect) over time. Our empirical results indicate that the energy efficiency in China's iron and steel sector increased by 60% between 1994 and 2003, which is mainly attributable to technical progress rather than technical efficiency improvement. The energy efficiency gaps among provincial iron and steel sectors during this period have widened. However, energy efficiency of iron and steel plants owned by the state has slowly improved in some regions, such as Shanghai, Liaoning, Beijing and Hubei. Nevertheless, technical efficiency in these four regions has decreased considerably. Energy efficiency in China's two largest private-own iron and steel bases (Heibei and Jiangsu) improved significantly.     

A supply-side approach to energy policy

Existing energy policy proposals are approached from a demand-side perspective to solve the immediate problem of meeting existing demands defined by existing technologies. However, a constructive forward-looking policy requires a supply-side perspective. The purview of energy policy is ultimately the efficient allocation of our scarce supply of available energy for ‘exergy’. The authors outline a proposal for efficient exergy management. This supply-side orientation is based upon basic thermodynamic principles, thus offering a foundation for formation of consistent criteria for policy-oriented decision making.     

Vietnam's energy sector: A review of current energy policies and strategies

Since the introduction of market-oriented economy in 1986, Vietnam has made noticeable socio-economic progress. In this progress, the energy sector has played a vital role. This role is likely to deepen in the years to come as Vietnam strives to achieve even higher levels in economic progress. Such deepening in the role of energy, this paper argues, will heighten concerns about the security of energy supply, and economic, environmental, social and political consequences. In order to address these issues, Vietnam has over the last decade, developed a suite of energy policies. A deeper review of these policies suggests that they are typified by economic-growth orientation, exclusive focus on a single-sector or single issue, and largely neglect the significance of cross-sectoral and cross-thematic issues arising from the interdependencies between energy, economy, and the polity at large. The existing energy policy settings are, therefore, unlikely to be able to provide a satisfactory redress to the challenges noted above. This paper provides an overview of the current energy policies with a view to identify areas where further policy effort is needed in order to facilitate a sustainable development of the Vietnamese energy sector.     

Optimization of energy consumption and input costs for apple production in Iran using data envelopment analysis

In this study a non-parametric method of data envelopment analysis (DEA) was applied to analyze the efficiency of farmers, discriminate efficient farmers from inefficient ones and to identify wasteful uses of energy in order to optimize the energy inputs for apple production in Tehran province, Iran. From this study the following results were obtained: from the total of 56 farmers, considered for the analysis, 34% and 54% were found to be technically and pure technically efficient, respectively. The technical, pure technical and scale efficiency scores of farmers were 0.7857, 0.8982 and 0.8666, respectively. Optimum energy requirement was found to be 37993.15 MJ ha⁻¹; indicating that 11.29% of total energy input could be saved if the recommendations of this study are followed. From total energy saving, the contribution of electrical energy was the highest; it followed by chemicals energy inputs; implying that there was a great scope for saving energy inputs by improving the use pattern of these inputs. The results of economical analysis showed that the total costs of production could decreased from 8227.70 to 7570.01 $ ha⁻¹; also the benefit to cost ratio and productivity improved from 1.24 to 1.34 and 2.52 to 2.74, respectively.     

Improving energy use efficiency of canola production using data envelopment analysis (DEA) approach

In this study energy use pattern for canola production in Golestan province of Iran was studied and the degrees of technical and scale efficiency of producers were analyzed using a non-parametric data envelopment analysis technique. The study also helped to identify the wasteful uses of energy by inefficient farmers and to suggest reasonable savings in energy uses from different inputs. Further, the effect of optimization of energy on energy ratio and energy productivity was investigated. Data used in this study were obtained from 130 randomly selected canola farms from Golestan, the most important center of canola production in Iran. The inputs were human labor, diesel, machinery, fertilizers, chemicals, water for irrigation, seeds and electrical energies; while the yield value of canola was considered as output. The results revealed that, the total energy of 17,786 MJ ha⁻¹ was consumed for canola production; about 15% of farmers were found to be technically efficient and the mean efficiency of farmers was found to be 0.74 and 0.88 under constant and variable returns to scale assumptions, respectively. The results also suggested that, on average, a potential 9.5% (1696 MJ ha⁻¹) reduction in total energy input could be achieved provided that all farmers operated efficiently.     

Towards sustainability of energy systems: A primer on how to apply the concept of energy services to identify necessary trends and policies

Virtually all goods and services that characterize modern societies’ welfare depend on the provision of commercial energy. The core objective of this paper is to identify necessary changes in trends for achieving a transition towards more sustainable energy systems and development paths. The major conclusions of this analysis are (i) a rigorous rethinking process has to take place to identify which level of energy services per capita lead to enhancing human welfare and quality of life; (ii) a significant increase in energy conversion efficiency has to be triggered to finally provide energy services with far less input of energy than today; (iii) a continuous increase in the share of renewable energy sources and other low-emission options has to be brought about; (iv) however, as history has shown this process of technological learning has to be accompanied by proper energy price and regulatory policies. Otherwise, it is very likely that energy conservation gains due to technical efficiency improvements will be outweighed again by increases in energy service demand and, straightforward, energy consumption and CO₂ emissions.     

A tool for creating energy market scenarios for evaluation of investments in energy intensive industry

The energy intensive industry can be a major contributor to CO₂ emissions reduction, provided that appropriate investments are made. To assess profitability and net CO₂ emissions reduction potential of such investments, predictions about future energy market conditions are needed. Energy market scenarios can be used to reflect different possible future energy market conditions. This paper presents a tool for creating consistent energy market scenarios adapted for evaluation of energy related investments in energy intensive industrial processes. Required user inputs include fossil fuel prices and costs associated with policy instruments, and the outputs are energy market prices and CO₂ consequences of import/export of different energy streams (e.g. electric power and biomass fuel) from an industrial process site. The paper also presents four energy market scenarios for the medium-term future (i.e. around 2020) created using the tool.     

A multi-equation model of energy consumption in Thailand

The paper reports the results of a new generalized price-augmented Working-based (Tran Van Hoa and Reece, 1989) six-equation model of energy consumption in Thailand for the period 1974–1987, and provides improved 2SHI (Tran Van Hoa, 1986) forecasts for six petroleum products for the period 1991–2000. The forecasts are particularly useful in complete fuel-cycle greenhouse-gas emission approaches (e.g. Wilson, 1990) to study the impact of energy consumption on the environment.     

A planning model for acute energy shortages

This paper presents some results of a model developed by the Energy Systems Research Group under the auspices of the Swedish Energy Research and Development Board and the National Swedish Industrial Board for the allocation of energy resources during a temporary shortfall. the model is basically an input-output model of the conventional sort with special treatment of energy inputs. Different objective functions can be used, but the results here assume maximization of private consumption with given restrictions on other demand components and on the composition of private consumption. First a reference case intended to be a representative situation for the latter part of the seventies was developed to be used as a basis for comparisons. Following that a ‘worst case’, in which no adaptation responses were allowed for, was run. Then several cases in which only one adaptation mechanism was introduced were computed. These mechanisms included conservation, allowing reduction of other demand components such as exports, allowing limited changes in the composition of consumer demand or in other types of demand, and allowing inventories of finished and semi-finished goods to be drawn upon. Finally, several runs were made in which several of these mechanisms for adaptation were permitted to operate simultaneously.     

A note on energy demand estimation

This study is concerned with the assessing the impact that inaccuracy in the measurement of the dependent variable and one or more of the independent variables has on the estimate of the price elasticity of demand for diesel fuel by farmers in the United States. Two diagnostics – the regression coefficient bounds and the bias correction factor — are introduced to assess the effect that such measurement errors have on the estimated coefficients of the diesel fuel demand relationship.     

The science and technology priority areas relevant to non-conventional energy goals in Egypt

A matrix method is used for the quantitative determination of science and technology priority areas relevant to the achievement of nonconventional energy goals in Egypt. Nonconventional energy goals of Egypt up to 2005 were first determined. Those nonconventional energy objectives are then related to different areas of science and technology in a priority order. This is accomplished by filling three matrices: (1) a D/D matrix which displays the interconnections between energy objectives, (2) an S/D matrix which describes the relevance of science and technology to objectives, and (3) an S/S matrix which displays the interconnections between scientific and technological disciplines. Cross-support, dependence and relevance indices enabled the construction of priority and cross-support charts. The method is useful and reveals many interesting results which are thoroughly discussed and analysed.     

A review of energy in Rwanda

During the last two decades, Rwanda has experienced an energy crisis mostly due to lack of investment in the energy sector. With the growing of the population and increasing industrialization in urban areas, energy provided by existing hydro and thermal power plants has been increasingly scarce with high energy costs, and energy instability. Furthermore, as wood fuel is the most important source of energy in Rwanda, the enduring dependence on it and fossil fuel consumption as well, will continue to impact on the process of environmental degradation. Rwanda is rich with abundant renewable energy resources such as methane gas in Lake Kivu, solar, biomass, geothermal; and wind energy resource is currently being explored. Recently, the Government has given priority to the extension of its national electrical grid through development of hydro power generation projects, and to rural energy through development of alternative energy projects for rural areas where access to national grid is still difficult. This paper presents a review of existing energy resources and energy applications in Rwanda. Recent developments on renewable energy are also presented.     

H2RES2 simulator. A new solution for hydrogen hybridization with renewable energy sources-based systems

This paper presents a new simulator for Hydrogen hybridization with Renewable Energy based Systems. The aim of this simulator is to provide a new solution for testing different energy management strategies of hydrogen hybridization based on renewable systems, in order to optimize them for implementation. The simulator uses the open architecture philosophy and has been developed in MATLAB^®-SIMULINK environment. Its main feature is calculating technical and economical parameters for a deepened analysis of influences on energy management strategies. It considers each element of the hybrid system and the whole system function. A simulation case shows the proper functioning of the simulator.     

Analysis of the relationship between international cooperation and scientific publications in energy R&D in China

Energy is important for China and for the whole world. Previously, the huge investment in energy-related research and commercialisation made it possible for China to cooperate with its international partners in various channels, and programs involving international cooperation and co-published papers increased annually. In this paper, through the review of intergovernmental cooperation programs and bibliometric analysis of the top energy journals, it was found that: (1) intergovernmental cooperation and non-governmental cooperation are two effective channels for energy R&D. (2) In these two channels, most participants of international cooperation are universities and institutes, and the most important partner countries are the US, Japan, and European Countries. (3) Industries began to be involved in international cooperation gradually. (4) For different areas, the degree of cooperation is not the same. Some areas have been more fruitful in cooperation, some are just beginning hydrogen energy, fuel energy and applied energy are the main co-publication areas with Chinese involvement; while wind energy, solar energy, fuel cells and bio-energy are new areas for China and there has not been so much co-publication until now.     

Using an energy flow chart to analyze Jiangsu Province’s energy balance

Since the start of economic reform in 1979, Jiangsu Province has become one of the most developed regions in China. To ensure adequate energy supply and sustainable development of economy and environment, it is necessary to analyze Jiangsu Province’s energy balance. The energy flow chart is taken as a useful tool for sorting out and displaying energy statistics data. The purpose of this paper is to draft the Jiangsu Province’s energy flow chart for 2009, which is used to study the characteristics of energy production and consumption in Jiangsu Province. We find that: (1) In 2009, energy imported from other regions accounted for 96.1% of the total primary energy supply. However, its energy supply mainly came from coal. (2) Jiangsu thermal power and heating efficiencies in 2009 were higher than those of Guangdong and China in 2007. However, its coal processing and petroleum refineries efficiencies in 2009 were lower than those of Guangdong and China in 2007. (3) Electricity supply in Jiangsu Province mainly depended on thermal power, which accounted for 88.97% of the total electricity supply. However, 96.36% fuel for thermal power was coal. (4) The share of final energy consumption of the secondary industrial sector was 81.28% in 2009.     

White Certificates for energy efficiency improvement with energy taxes: A theoretical economic model

In this paper we analyze interactions of two energy policy instruments, namely a White Certificates (WhC) scheme as an innovative policy instrument for energy efficiency improvement and energy taxation. These policy instruments differ in terms of objectives and final impacts on the price of electricity. We examine the effect of these policy instruments in the electricity sector, focusing on electricity producers and suppliers in a competitive market. Using microeconomic theory, we identify synergies between market players and demonstrate the total effect on the electricity price when suppliers internalize the behaviour of producers in their decisions. This model refers to an ideal market situation of full liberalization. The cases we examine consist of electricity producers with and without a carbon tax, electricity suppliers with and without an electricity tax, and with WhC obligations. Furthermore, we present a parallel implementation of WhC for electricity suppliers with carbon tax on electricity producers and an electricity tax with WhC obligations to electricity suppliers. We demonstrate differences in optimization behaviour of producers and suppliers. Based on a couple of cases of WhC with carbon and electricity taxes, various positive and negative effects of both schemes in terms of target achievement and efficiency are present, which can lead to an added value of such schemes in the policy mix, although uncertainties of outcomes are quite high. A basic finding is that in a merit order several parameters can increase final electricity price after the implementation of different policies: demand for electricity and electricity supply cost at a large scale and then follow the level of level of obligation for energy saving, level of penalty, and price of WhC (representing the marginal costs of energy saving projects). The impact magnitude of parameters depends on the values chosen and on the initial position of suppliers (i.e. if their actual behaviour deviates from full compliance with targets).     

Autonomous efficiency improvement or income elasticity of energy demand: Does it matter?

Observations of historical energy consumption, energy prices, and income growth in industrial economies exhibit a trend in improving energy efficiency even when prices are constant or falling. Two alternative explanations of this phenomenon are: a productivity change that uses less energy and a structural change in the economy in response to rising income. It is not possible to distinguish among these from aggregate data, and economic energy models for forecasting emissions simulate one, as an exogenous time trend, or the other, as energy demand elasticity with respect to income, or both processes for projecting energy demand into the future. In this paper, we ask whether and how it matters which process one uses for projecting energy demand and carbon emissions. We compare two versions of the MIT Emissions Prediction and Policy Analysis (EPPA) model, one using a conventional efficiency time trend approach and the other using an income elasticity approach. We demonstrate that while these two versions yield equivalent projections in the near-term, that they diverge in two important ways: long-run projections and under uncertainty in future productivity growth. We suggest that an income dependent approach may be preferable to the exogenous approach.     

Localism and energy: Negotiating approaches to embedding resilience in energy systems

Tensions are evident in energy policy objectives between centralised top-down interconnected energy systems and localised distributed approaches. Examination of these tensions indicates that a localised approach can address a systemic problem of interconnected systems; namely vulnerability.     

Industrial energy accounting and control systems: A survey

The status of energy accounting and control systems in industry within energy management systems and organizations was assessed, their main features were analyzed, and some factors influencing their efficiency were discussed. A model in which the costs of such systems and their advantages in terms of energy savings were introduced was developed. Under some simplifying assumptions concerning the cost function, it was shown that these systems were profitable only if the total energy consumption of the firm was above some minimum level E°. or if the ratio RE of energy consumption in monetary terms to the total costs of the firm was above some minimum level RE°. A survey on a number of French industrial firms or plants showed that this model described the data quite well, with E° = 3100 tons of oil-equivalent, and RE° = 0.05.     

A review of computer tools for analysing the integration of renewable energy into various energy systems

This paper includes a review of the different computer tools that can be used to analyse the integration of renewable energy. Initially 68 tools were considered, but 37 were included in the final analysis which was carried out in collaboration with the tool developers or recommended points of contact. The results in this paper provide the information necessary to identify a suitable energy tool for analysing the integration of renewable energy into various energy-systems under different objectives. It is evident from this paper that there is no energy tool that addresses all issues related to integrating renewable energy, but instead the ‘ideal’ energy tool is highly dependent on the specific objectives that must be fulfilled. The typical applications for the 37 tools reviewed (from analysing single-building systems to national energy-systems), combined with numerous other factors such as the energy-sectors considered, technologies accounted for, time parameters used, tool availability, and previous studies, will alter the perception of the ‘ideal’ energy tool. In conclusion, this paper provides the information necessary to direct the decision-maker towards a suitable energy tool for an analysis that must be completed.