Sustainable reference methodology for energy end-use efficiency data in the EU

One of the most important goals of the European energy policy involves the implementation of energy-efficiency measures in large scale so as to promote sustainable development in the European Union (EU) level. The multidimensional character of energy end-use efficiency (EEE) necessitates the collection of a number of related data, apart from the performance and system parameters data, such as socio-economic (e.g., employment, turnover) and Research and Development (R&D) expenditures. Moreover, improved co-ordination of EEE programmes and policies of the community and the member states so as a unified acceptable system to be developed for the monitoring of the EEE data with respect to the existing targets is of significant importance. Even though data-gathering efforts have been implemented, a lot of fragmented data and deduced findings are currently available, which sometimes lack consistency and verification. In this context, the main aim of the paper is to present a sustainable reference methodology for validating EEE data in EU, through the review of existing approaches and methods, defining of most relevant inconsistencies and gaps and provision of recommendations for improvements in EEE data aggregation and statistical interpretation, taking into consideration the related analysis of statisticians, energy technology experts and energy socio-economists.     

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.     

Linear programming models for measuring economy-wide energy efficiency performance

Data envelopment analysis (DEA) has recently gained popularity in energy efficiency analysis. A common feature of the previously proposed DEA models for measuring energy efficiency performance is that they treat energy consumption as an input within a production framework without considering undesirable outputs. However, energy use results in the generation of undesirable outputs as by-products of producing desirable outputs. Within a joint production framework of both desirable and undesirable outputs, this paper presents several DEA-type linear programming models for measuring economy-wide energy efficiency performance. In addition to considering undesirable outputs, our models treat different energy sources as different inputs so that changes in energy mix could be accounted for in evaluating energy efficiency. The proposed models are applied to measure the energy efficiency performances of 21 OECD countries and the results obtained are presented.     

Analysis of the Syrian long-term energy and electricity demand projection using the end-use methodology

A comprehensive analysis of the possible future long-term development of Syrian energy and electricity demand covering the period 1999–2030 is presented. The analysis was conducted using the IAEA's model MAED, which relies upon the end-use approach. This model has been validated during the last two decades through the successful application in many developing countries, even those having partial market economy and energy subsidy.     

An end-use energy analysis in a Malaysian public hospital

The commercial sector consumes 8–50% of the total energy consumption for a few selected countries around the world. An energy audit was conducted in a Malaysian public hospital to identify energy using equipment and their energy consumption breakdown. Different energy saving measures have been identified and applied for electrical motors used in this hospital. It was estimated that this hospital consumed about 19,311 MW h for the year 2008. It was also estimated that about 212 MW h, 250 MW h and 317 MW h of annual energy can be saved using energy-efficient motors at 50%, 75% and 100% loads, respectively. In addition, use of variable speed drives are expected to save 1735 MW h, 4048 MW h and 6361 MW h of annual energy consumption for 20%, 40% and 60% speed reductions, respectively. It was found that the payback period for using high efficiency motors at different loads is less than a year which is economically very viable. However, the use of variable speed drives was found to be economically viable for larger motors for higher speed reductions. The study also found that a sizeable amount of emissions can be reduced for the different energy savings measures applied for electrical motors.     

Potential problems and limitations of energy conservation and energy efficiency

We discuss that whilst energy conservation and energy efficiency both ultimately have the same goal they attempt to achieve this via very different approaches. We then discuss how both options face significant barriers to ultimately successfully reduce electricity consumption.     

Improving the institutional structures for disseminating energy efficiency in emerging nations: a case study for energy agencies in South Africa

Emerging nations are typically characterised by highenergy intensities despite significant energy efficiency potentials and numerous project oriented efforts to introduce energy-efficient technologies. The paper argues that successful technology dissemination needs appropriate institutional structures to reduce the related transaction cost. While a project-by-project approach risks to evaporate after completion, an energy agency would allow to bundle the know-how and information gained, ease access to funding and thus reduce information search cost and increase availability of efficient technologies. In a case study for South Africa, we examine the appropriateness of this concept for emerging nations. We discuss the underlying incentive problem from a new institutional economics perspective and suggest an approach to the design and implementation of operable energy agencies.     

Promoting energy efficiency investments with risk management decision tools

This paper reviews current capital budgeting practices and their impact on energy efficiency investments. The prevalent use of short payback "rule-of-thumb" requirements to screen efficiency projects for risk is shown to bias investment choices towards "sure bet" investments bypassing many profitable efficiency investment options. A risk management investment strategy is presented as an alternative to risk avoidance practices applied with payback thresholds. The financial industry risk management tool Value-at-Risk is described and extended to provide an Energy-Budgets-at-Risk or EBaR risk management analysis to convey more accurate energy efficiency investment risk information. The paper concludes with recommendations to expand the use of Value-at-Risk-type energy efficiency analysis.     

The trouble with energy efficiency indexes: la aritmetic non e opinione

Rising energy use and energy-related global greenhouse gas emissions are encouraging new national energy efficiency policies and long-term international cooperative agreements. These require on-going studies to monitor their progress; thus, substantial effort must be directed toward developing reliable evaluation methodologies. One proposed methodology that is gaining in popularity involves energy efficiency indexes. The purpose of this paper is to show that there is a fundamental shortcoming in this approach that makes it unsuitable for estimating policy impacts. This is done in two ways: first, by comparing the calculation of a percent change in energy efficiency indexes to a conventional calculation of a percent change in the level of energy use and, second, by using a Monte Carlo experiment to estimate the probability that policy impacts estimated via an energy efficiency index, even one that has been adjusted, will contain a high degree of error.     

Energy saving and energy efficiency concepts for policy making

Departing from the concept of rational use of energy, the paper outlines the microeconomics of end-use energy saving as a result of frugality or efficiency measures. Frugality refers to the behaviour that is aimed at energy conservation, and with efficiency we refer to the technical ratio between energy input and output services that can be modified with technical improvements (e.g. technology substitution). Changing behaviour from one side and technology from the other are key issues for public energy policy. In this paper, we attempt to identify the effects of parameters that determine energy saving behaviour with the use of the microeconomic theory. The role of these parameters is crucial and can determine the outcome of energy efficiency policies; therefore policymakers should properly address them when designing policies.     

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).     

An analysis of energy use efficiency of canola production in Turkey

In this study, a survey and economic analysis regarding the use of input have been performed with canola farmers in the Trakya region of Turkey; survey data were obtained from 100 farmers, face-to-face. The average energy use efficiency is 4.68 and this value increases as farm size increases; according to the results of this study, energy is used more efficiently in large farms. The difference between average input and output energy is 67259.36 (MJ ha⁻¹). The specific energies of small, medium, and large farms are 62584.37, 69836.21, and 74405.43 respectively. The ratio of direct and indirect energy sources are 24.69%, and 75.31% respectively, and the benefit–cost ratio of canola production is 2.09.     

Assessment of the energy utilization efficiency in the Turkish transportation sector between 2000 and 2020 using energy and exergy analysis method

Energy and exergy utilization efficiencies in the Turkish transportation sector over the period from 2000 to 2020 are evaluated in this study. A comparison of the overall energy and exergy efficiencies of the Turkish transportation sector with the other countries is also presented. Energy and exergy analyses are performed for four transport modes, namely roadway, railway, airway and seaway, while they are based on the actual data for 2000 and projected data for 2020. Roadway appears to be the most efficient mode when compared with railway, air and seaway. It is projected that about 15% of total energy resources will be used in this sector during 2020. The energy utilization efficiencies for the Turkish transportation sector range from 23.71% in 2000 to 28.75% in 2020, while the exergy utilization efficiencies vary from 23.65% to 28.85% in the same years, respectively. Exergetic improvement potential for this sector is estimated to be 700 PJ in 2020, with an average increase rate of 4.5% annually between 2000 and 2020. Road transport and oil-fuelled combustion engines offer the principal scope for exergetic improvement in the coming decades. It may be concluded that the methodology used in this study is practical and useful for analyzing sectoral energy and exergy utilization to determine how efficiently energy and exergy are used in the sector studied. It is also expected that this study will be helpful in developing highly applicable and productive planning for energy policies.     

Structural breaks and energy efficiency in Fiji

This paper examines how energy-output ratios (EYRs) in Fiji have responded to the major energy crises and in particular if these ratios have declined after the energy shocks. The expectation is that energy efficiency should improve after an energy crisis. For this purpose we have used at first a few simpler procedures and then a recently developed more powerful tests for structural breaks by Bai and Perron [Bai, J., Perron, P., 1998. Estimating and testing linear models with multiple structural changes. Econometrica 66, 47–78; Bai, J., Perron, P., 2003a. Computation and analysis of multiple structural change models. Journal of Applied Econometrics 18, 1–22; Bai, J., Perron, P., 2003b. Critical values for multiple structural change tests. Econometrics Journal 6, 72–78]. Policy implications of our results are discussed.     

Measurement and analysis of product energy efficiency to assist energy star criteria development: An example for desktop computers

The Energy Star labeling program contributes to reducing economic and environmental impacts. Although product-specific criteria for the label are developed by taking into account potential energy savings, more robust criteria need to be developed to minimize energy consumption (and consequential global warming potential (GWP)). The objectives of this study are: (i) to measure what we refer to as the technical and cost efficiencies of products with respect to the relative Energy Star criteria achievement rate and GWP, respectively; and (ii) to analyze the relationship between these efficiencies and product design features, using stochastic frontier analysis (SFA) and data envelopment analysis (DEA). As an example, these analyses are applied to data for desktop computers. The results indicate that desktop computer manufacturers currently achieve energy savings that exceed those required by the Energy Star label. The principal product design features affecting the efficiencies are primarily the efficiency and power capacity of the power supply and the number of cores in the central processing unit. This study can help the program develop more robust criteria that ultimately reduce GWP and can provide guidance to manufacturers to strategically improve energy efficiency.     

Potential energy savings and environmental impact by implementing energy efficiency standard for household refrigerators in China

With the rapid economic growth and improvement in standard of living, Chinese people are employing more and more household appliances to make their living convenient and comfortable, of which refrigerators are indispensable. Because refrigerators operate continuously irrespective of seasons and regions, the total electricity consumption of refrigerators is huge and consequently causes severe energy-related environmental issues. China has been paying more and more attention to this and issued a national energy efficiency standard, GB12021.2-2003, for refrigerators. This paper first describes the standard briefly. Then it develops a mathematic model to evaluate the potential energy savings and environmental impacts of the standard. The estimated results indicate implementing the standard will save large energy, as well as benefit greatly to environment. Thus, it is very necessary to implement energy efficiency standard for refrigerators in China.     

Towards a sustainable energy balance: progressive efficiency and the return of energy conservation

We argue that a primary focus on energy efficiency may not be sufficient to slow (and ultimately reverse) the growth in total energy consumption and carbon emissions. Instead, policy makers need to return to an earlier emphasis on “conservation,” with energy efficiency seen as a means rather than an end in itself. We briefly review the concept of “intensive” versus “extensive” variables (i.e., energy efficiency versus energy consumption) and why attention to both consumption and efficiency is essential for effective policy in a carbon- and oil-constrained world with increasingly brittle energy markets. To start, energy indicators and policy evaluation metrics need to reflect energy consumption, as well as efficiency. We introduce the concept of “progressive efficiency,” with the expected or required level of efficiency varying as a function of house size, appliance capacity, or more generally, the scale of energy services. We propose introducing progressive efficiency criteria first in consumer information programs (including appliance labeling categories) and then in voluntary rating and recognition programs such as ENERGY STAR. As acceptance grows, the concept could be extended to utility rebates, tax incentives, and ultimately to mandatory codes and standards. For these and other programs, incorporating criteria for consumption, as well as efficiency, offers a path for energy experts, policymakers, and the public to begin building consensus on energy policies that recognize the limits of resources and global carrying capacity. Ultimately, it is both necessary and, we believe, possible to manage energy consumption, not just efficiency, in order to achieve a sustainable energy balance. Along the way, we may find it possible to shift expectations away from perpetual growth and toward satisfaction with sufficiency.

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.     

Structural change and energy efficiency in industry

The change in the ratio of energy consumed to industrial production is examined over the years 1968–1980. Changes in the composition of industry are analysed, creating a better picture of movements in physical efficiency of energy use. The medium-term trends show the significance of the 1973 oil crisis, the effects being contrary to those of intuition. The implications of the two recessions for efficiency and industrial structure are described in detail. The role of demand, often relegated to an incidental consideration, is brought to the fore. In the years following 1973 it appears more important than ex post substitution in production, and with this comes a particular implication for the use of aggregate production functions.     

Prospective on the energy efficiency and CO2 emissions in the EU cement industry

The cement industry is the third largest carbon emitting industrial sector in the EU. The present work analyses the potential for improvement in the energy efficiency and CO₂ emission reduction for this sector up to 2030. Three scenarios are analysed: baseline scenario (BS) representing the current evolution of the cement sector and two alternative scenarios (AS1 and AS2) studying respectively the sensitivity of fuel prices and CO₂ emission prices. The results for the BS show an improvement in the thermal energy efficiency and the CO₂ emissions per tonne of clinker respectively of 11% and 3.7% in 2030 compared with the level of 2002. However, for AS1 and AS2, these scenarios are insensitive to fuel and CO₂ emission prices, respectively. This can be explained by the fact that a large number of retrofits are economically feasible in the BS, leading to a significant reduction in the thermal energy consumption.