Final energy use in IEA countries: The role of energy efficiency

Improved energy efficiency is a key policy goal of all International Energy Agency (IEA) member countries, but tracking energy efficiency gains is not straightforward. As part of its contribution to the G8 Gleneagles Plan of Action, the IEA has been developing in-depth indicators—tools that provide data and analysis of energy use and efficiency trends. This paper gives an overview of the IEA indicator methodology and presents examples of how disaggregated indicators can be used to identify the factors that drive and restrain energy demand at the end-use level. A decomposition approach is also used to separate efficiency effects from the impacts of structure and activity. The results clearly show the important role that energy efficiency has played in shaping trends in final energy use in IEA countries for more than 30 years. However, the analysis also reveals that recent gains in energy efficiency have been much lower than in earlier decades. Accelerating energy efficiency improvements is therefore a crucial challenge for IEA governments and indicators have an important role to play in helping to develop and evaluate the policies that will be required.     

The role of energy efficiency and renewable energies in the future world energy market

The world population is rising rapidly, notably in the developing countries. Historical trends suggest that increased annual energy use per capita is a good surrogate for the standard of living factors which promote a decrease in population growth rate. If these trends continue, the stabilization of the world's population will require the increased use of all sources of energy as cheap oil and gas are depleted. The improved efficiency of energy use and renewable energy sources will be essential to stabilizing population, while providing a decent standard all over the world.     

Investment inefficiency and the adoption of eco-innovations: The case of household energy efficiency technologies

This paper examines the factors determining household adoption of energy efficiency eco-innovations. We do so by testing hypotheses grounded in diffusion and finance theory and the literature on the barriers to energy efficiency. Using two large surveys of UK households, we explore the adoption of nine technologies. Our results indicate ‘investment inefficiency’ amongst household adopters occurs for two reasons. First, contrary to notions of rational choice, we find a negative relationship between the investment return of technologies and their level of diffusion. Second, we show adopters of these technologies display characteristics broadly consistent with diffusion theory, contradicting the prediction of finance theory that investment return, not individual characteristics, should drive adoption. We also find that policy has played a role in inducing the diffusion of these technologies and that tenure and spill-over effects are important in adoption. Finally, adoption is motivated more by a desire to save money than by environmental concern. We conclude by giving examples of how our research can lead to better policy timing and targeting.     

The role of built environment energy efficiency in a sustainable UK energy economy

Energy efficiency in the built environment can make significant contributions to a sustainable energy economy. In order to achieve this, greater public awareness of the importance of energy efficiency is required. In the short term, new efficient domestic appliances, building technologies, legislation quantifying building plant performance, and improved building regulations to include installed plant will be required. Continuing these improvements in the longer term is likely to see the adoption of small-scale renewable technologies embedded in the building fabric. Internet-based energy services could deliver low-cost building energy management and control to the mass market enabling plant to be operated and maintained at optimum performance levels and energy savings quantified. There are many technology options for improved energy performance of the building fabric and energy systems and it is not yet clear which will prove to be the most economic. Therefore, flexibility is needed in legislation and energy-efficiency initiatives.     

The role of Smart Grids to foster energy efficiency

The traditional electricity grid has remained the same for most of last century, without major architectural improvements. However, its requirements, guidelines and goals do have changed, especially during the last few years, driven by the sustainability in energy generation and energy efficiency principles. Thus, taking greenhouse gases emissions and CO₂ footprint reduction as key objectives and information and communications technologies as key enabler technologies, a novel and revolutionary electric grid paradigm, the so-called Smart Grid, is emerging, in which energy efficiency and renewable generation play a central role. This paper presents an overview on the main requirements and features of Smart Grids to integrate energy efficiency, on the work done and to be done, on the enabler technologies, as well as on the expected impacts and the main benefits Smart Grids will bring.     

The social return on investment in the energy efficiency of buildings in Germany

The German government has developed a variety of policy instruments intended to reduce national CO₂ emissions. These instruments include a programme administered by KfW bank, which aims at improving the energy efficiency of buildings. It provides attractive credit conditions or subsidies to finance refurbishment measures which improve the energy efficiency of buildings significantly.     

可再生能源与能效项目中第三方融资的作用

新型可再生能源以及能效技术应用的主要的障碍之一，在于投资不足和对现代融资机制的操作和功能认识不足。传统融资方案的融资风险(也就是借贷方案、产权集资等)，加上先进可再生能源技术不断增加的技术及绩效方面的风险，对可再生能源项目的发展构成了额外的限制。现代融资机制提供一系列可供选择的优势，包括减少传统融资方案所承担风险的影响、为潜在投资者和能源用户提供具有吸引力的选项。可以预期，现代融资机制的应用将强化可再生能源技术的推广。文章全面介绍了第三方融资，以期能对可再生能源的发展和推广有所助益。     

Factors affecting the adoption of energy efficiency in the manufacturing sector of developing countries

This paper analyzes the drivers for and barriers to the adoption of energy efficient technologies among a sample of firms based in Viet Nam, the Philippines, and Moldova. The current debate on the fight against climate change emphasizes the need to adopt environmentally friendly measures at the global level. We therefore need to better understand the obstacles to the adoption of energy saving measures, especially in developing countries. By applying discrete choice modeling techniques, we find that firms’ internal management and organizational factors rather than top-down or other external market conditions increase firms’ likelihood to invest in energy efficient technologies. Moreover, experience in the adoption of energy efficient technologies and the commitment of top management are also crucial in this regard.     

The link between political decision-making and energy options: Assessing future role of renewable energy and energy efficiency in Finland

European Union and Finland are confronted with much the same kind of challenges in energy policy. Because of much higher importance on energy, these issues escalated earlier in Finland including vital political decision-making. Several alternative energy paths to the future can be identified with fairly similar projected costs. The more in-depth analysis in the Finnish case suggests that, e.g., an integrated approach consisting of renewable energy sources and energy efficiency measures would be one competitive alternative to satisfy both increasing energy demand and CO₂ emission reductions already by 2020. The study shows that meeting environmental, energy security and economical targets may not as such be adequate for the future success of an energy option. There is a more profound link between the energy options and the political decision-making, implying a much broader range of criteria than just the 3 Es reflecting thus politicians’ priorities and concerns. For example, in the Finnish case renewable energy sources and energy efficiency did not match optimally the parliamentary majority's preferences when deciding on future electricity direction in 2002. The methodology suggested here can be used to improve the strategic positioning of alternative energy paths.     

Potential economic and social benefits of promoting energy efficiency measures in Nigeria

The paper discusses with lucid examples the potential economic and social benefits of promoting energy efficiency measures at the industrial, institutional, and domestic levels in Nigeria. It draws attention to the development of energy efficiency market as a means to meet the ever increasing demand for energy services in Nigeria. Energy saving opportunities and high investment returns in the replacement of incandescent lamps with compact fluorescent lamps and light-emitting diodes are highlighted. The need for appliance standardization and exploitation of the synergy between energy efficiency and renewable energy systems was pointed out. Equally highlighted are some of the perceived barriers to energy efficiency initiatives in Nigeria. The urgent need for public awareness creation, institutional strengthening, and partnership with international agencies for sustainable energy efficiency promotion measures in Nigeria is stressed.     

Owners perception on the adoption of building envelope energy efficiency measures in Swedish detached houses

The paper focuses on Swedish homeowners’ need for and perceptions about adopting building envelop energy efficiency measures. The paper is based on a questionnaire survey of 3059 homeowners (response rate of 36%) selected by stratified random sampling during the summer of 2008. The results showed that 70–90% of the respondents had no intention of adopting such a measure over the next 10 years. The main reasons for non-adoption were that homeowners were satisfied with the physical condition, thermal performance, and aesthetics of their existing building envelope components. A greater proportion of respondents perceived that improved attic insulation has more advantages than energy efficient windows and improved wall insulation, but windows were more likely to be installed than improved attic insulation. Respondents gave high priority to economic factors in deciding on an energy efficiency measure. Interpersonal sources, construction companies, installers, and energy advisers were important sources of information for homeowners as they planned to adopt building envelope energy efficiency measures. Policy measures to facilitate the rate of adoption of energy efficient building envelope measures are discussed.     

Leveraging energy efficiency to finance public-private social housing projects

The Italian housing model relies on a high rate of privately owned houses. In comparison, few dwellings are built and managed by the public sector. The social housing stock has been built mainly during some post-second world war decades; instead, since the early nineties, it underwent a privatization process.Such a model is inefficient and iniquitous in the long run. Therefore, after being disregarded for several years, social housing has gone back to be among the main agenda items. Nonetheless, due to the lack of public grants, new funding sources are required. The government now fosters an increasing involvement of private finance through Public-Private Partnership schemes.A first outcome can be found in some pioneering experiences. Their comparative analysis allows bringing out worthwhile findings, which are useful to steer housing policies. Moderate to low yields entail the need to involve new kinds of private entities, particularly those adopting a venture philanthropy approach. Meanwhile, building energy performance measures are a crucial driver of feasibility. They allow the tenants to be willing to pay agreed rents somehow higher than both social rents of protected tenancies and fair rents of regulated tenancies.     

The role of corporate reputation and employees' values in the uptake of energy efficiency in office buildings

Although office market actors in the United Kingdom show a growing interest in energy efficiency, the pace of takeup of energy efficient office features is slow. Previous studies have highlighted the roles of limited direct financial costs and benefits (‘efficiency gaps’) and market barriers in limiting the rate of technology adoption. This study provides further evidence on the importance of these factors, but the primary contribution is focused on the role of corporate reputation and on the importance of individuals' values in shaping corporate behaviour. The paper presents a theoretical framework to explain environmental decision making in firms and we present qualitative evidence drawing from sixteen semi-structured individual and group interviews with office market stakeholders in London, Glasgow and Edinburgh. The research finds that companies, despite gradually becoming more energy conscious, still regard energy costs as a negligible part of their business costs. Nevertheless, an increasingly important driver is the reputational gain obtained by corporate businesses implementing sustainable practices. All the interviewees agreed that the pace of change in the office market is slow and that only further policy interventions will accelerate it.     

The role of energy efficiency in reducing Scottish and UK CO2 emissions

In 2003, the UK government launched its long-anticipated White Paper on energy, the centrepieces of which were ambitious targets for the production of electricity from renewable technologies and the long-term aspiration of a 60% reduction in UK greenhouse gas emissions by 2050. In the White Paper it was recognised that such a dramatic reduction in emissions will require significant changes in the way in which energy is produced and used. However there has been a general failure to recognise the fact that in order to meet emissions targets, the UK will have to significantly reduce its energy consumption; this is not helped by the general misconception in the UK that reductions in CO₂ emissions will occur simply by increasing the production of electricity from renewable sources.

Specifically, this paper highlights the current trends in renewables deployment and energy demand, with a specific focus on Scotland, where the authorities have set more ambitious renewables targets than the rest of the UK. As will be demonstrated in this paper, without energy demand reduction, the deployment of renewables alone will not be sufficient to curtail growth in UK CO₂ emissions. This is illustrated using a case study of the Scottish housing sector; whilst this case study is necessarily local in scope, the results have global relevance. The paper will also address the magnitude of energy savings required to bring about a reduction in emissions and assesses the status of the policies and technologies that could help bring such reductions about.     

The effects of home energy efficiency upgrades on social housing tenants: evidence from Ireland

This research examines some of the multiple benefits of a home energy efficiency upgrade programme for social housing tenants. Employing a quasi-experimental approach, we examine a range of objectively measured and self-reported outcomes, including metered gas consumption, for a control and upgrade group, before and after the upgrade. We drew our sample from a large home energy efficiency programme in Ireland, The SEAI Better Energy Communities Scheme, which provides funding for whole communities to upgrade the efficiency of their dwellings. Dwellings were selected for upgrade based on need, allowing us to control for observable dwelling characteristics correlated with selection into the trial. The upgrades undertaken were extensive relative to the average home energy improvement, with many dwellings receiving a number of measures. Households reported improvements across a range of outcomes associated with heating-related deprivation and comfort in the home. We use panel regression models to estimate the elasticity of gas demand with respect to the thermal efficiency of the dwellings. Overall, we find that use of natural gas fell much less than 1:1 for each increment to thermal efficiency of the home. For the average household in this study, about one third of the marginal increase in thermal efficiency was reflected in reduced gas demand. This result highlights issues with standard engineering models which are commonly used to assess the energy efficiency of dwellings and points to a behavioural response from households, potentially taking back some of the savings as increased internal temperatures.     

The optimum energy harvest efficiency of an energy crop

It is shown that the usefulness of a plant species as an energy crop depends on energy harvestment efficiency and not entirely on the photosynthetic efficiency. An ideal energy crop must admit continuous energy extraction while maintaining quasistatic equilibrium with the growth process. A simple model based on these ideas is used to relate optimum energy harvest rate to photosynthetic energy storage rate.     

The role of energy efficiency spending in Maryland’s implementation of the Regional Greenhouse Gas Initiative

What are the economic consequences of increased state spending on electricity consumption efficiency? The State of Maryland faces this question in deciding how much of its CO₂ allowances auction proceeds (under the Regional Greenhouse Gas Initiative) to devote to such programs. Starting at a base of 25% of the proceeds, we consider the energy savings, emissions reductions, employment, and other impacts of increasing that percentage to 50% and 100%. A series of models – Haiku, JHU-OUTEC, and IMPLAN – are used for the analysis. We conclude that increasing the state’s expenditures on energy efficiency programs would result in a decline in electricity consumption in the state and a corresponding decline in expenditures on electricity. Program implementation would lead to net positive growth in statewide economic activity and include growth in both jobs and wages.     

Examining the role of energy efficiency and non-economic factors in energy demand and CO2 emissions in Nigeria: Policy implications

This paper examines the role of energy efficiency and non-economic factors such as consumers' preferences, lifestyles and values (which have hitherto been ignored) in energy demand and CO₂ emissions modelling for Nigeria. We use a structural time series model to estimate various energy demand and CO₂ intensity models that take account of the aforementioned factors. We adopt preferred models from these estimates to analyse how energy demand and CO₂ emissions in Nigeria might evolve by generating three different future scenarios to 2025. We find energy efficiency and non-economic factors to influence energy demand and CO₂ emissions. The long-run income and price elasticities obtained differ significantly from those in existing studies that have ignored these salient factors. In a business-as-usual scenario, the results indicate that energy demand will continue to grow. Consequently, present policies do not sufficiently mitigate aggregate CO₂ emissions in Nigeria. The lesson for policy makers is that the extant policies introduced to restrain CO₂ emissions (from a production perspective) have to be combined with new policies that influence consumers' lifestyles and behaviours, develop energy efficient technologies and apply low tariffs on imported energy efficient appliances, to drive down CO₂ emissions from a consumption perspective.     

Broadening to sustainability the perspective of industrial decision-makers on the energy efficiency measures adoption: some empirical evidence

The industry should take further efforts towards increased energy efficiency, that is a major contributor to improve industrial sustainability performance, by implementing energy efficiency measures (EEMs). However, the rate of adoption of these measures is still quite low. Hitherto, EEMs and barriers to their adoption have been evaluated almost exclusively from the viewpoint of energy efficiency decision-makers, not accounting for the broader sustainability perspective. This work aims at understanding whether an industrial sustainability perspective can better address issues related to EEMs adoption, analyzing the question through different viewpoints and insights offered by industrial decision-makers of different industrial sustainability areas within a firm. By doing this, we aim at offering a contribution in the understanding of the low rate of adoption of EEMs. As case studies, we investigated 12 firms from Northern Italy. In comparison to previous literature, results show that an industrial sustainability perspective can better explain the real decision-making process of adopting an EEM. Indeed, people knowledgeable about different industrial sustainability areas may perceive different barriers about the same EEM. EEMs may be negatively affected by reasons related to other areas of industrial sustainability, while positive reciprocal impacts may exist among areas of industrial sustainability; thus, EEMs may have effects on areas other than energy efficiency, and these effects may be perceived only by such areas. The study concludes with some remarks for policy and industrial decision-makers and advice for further research.