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.     

The effect of energy end-use efficiency improvement on China’s energy use and CO2 emissions: a CGE model-based analysis

With its rapid economic growth, China is now confronted with soaring pressure from both its energy supply and the environment. To deal with this conflict, energy end-use efficiency improvement is now promoted by the government as an emphasis for future energy saving. This study explores the general equilibrium effect of energy end-use efficiency improvement on China’s economy, energy use, and CO₂ emissions. This paper develops a static, multisector computable general equilibrium model (CGE) for China, with specific detail in energy use and with the embodiment of energy efficiency. In order to explore the ability of subsidizing non-fossil-generated electricity on moderating potential rebound effects, in this model, the electricity sector was deconstructed into five specific generation activities using bottom–up data from the Chinese electricity industry. The model is calibrated into a 16-sector Chinese Social Accounting Matrix for the year 2002. In the analysis, seven scenarios were established: business as usual, solely efficiency improvement, and five policy scenarios (taxing carbon, subsidized hydropower, subsidized nuclear power, combination of taxing carbon and subsidized hydropower, combination of taxing carbon and subsidized nuclear power). Results show that a sectoral-uniform improvement of energy end-use efficiency will increase rather than decrease the total energy consumption and CO₂ emissions. The sensitivity analysis of sectoral efficiency improvement shows that efficiency improvements happened in different sectors may have obvious different extents of rebound. The three sectors, whose efficient improvements do not drive-up total national energy use and CO₂ emissions, include Iron and Steel, Building Materials, and Construction. Thus, the improvement of energy end-use efficiency should be sectoral specific. When differentiating the sectoral energy-saving goal, not only the saving potential of each sector but also its potential to ease the total rebound should be taken into account. Moreover, since the potential efficiency improvement for a sector over a certain period will be limited, technology measures should work along with a specific policy to neutralize the rebound effect. Results of policy analysis show that one relatively enhanced way is to combine carbon taxing with subsidized hydropower.     

On the potential trade-offs between energy supply and end-use technologies for residential heating

In Sweden, where district heating accounts for a significant share of residential heating, it has been argued that improvements in end-use energy efficiency may be counter-productive since such measures reduce the potential of energy efficient combined heat and power production. In this paper we model how the potential trade-offs between energy supply and end-use technologies depend on climate policy and energy prices. The model optimizes a combination of energy efficiency measures, technologies and fuels for heat supply and district heating extensions over a 50 year period. We ask under what circumstances improved end-use efficiency may be cost-effective in buildings connected to district heating? The answer hinges on the available technologies for electricity production. In a scenario with no alternatives to basic condensing electricity production, high CO₂ prices result in very high electricity prices, high profitability of combined heat and power production, and little incentive to reduce heat demand in buildings with district heating. In contrast, in a scenario where electricity production alternatives with low CO₂ emissions are available, the electricity price will level out at high CO₂ prices. This gives heat prices that increase with the CO₂ price and make end-use efficiency cost-effective also in buildings with district heating.     

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.     

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.     

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.     

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.     

Policy issues in improving energy efficiency

Today many urgent policy issues need addressing within the overall topic of improving energy efficiency. Also, they need to be addressed at many levels in society, each level possibly requiring a different approach: the overall national economy; the national energy sector; the energy utility; and the energy consumer. This article looks at some of the more important common issues, which apply at all levels, and gives some options on how these issues might be addressed.     

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.     

A critical analysis of energy efficiency improvement potentials in Taiwan's cement industry

The cement industry is the second most energy-intensive sector in Taiwan, which underlines the need to understand its potential for energy efficiency improvement. A bottom-up model-based assessment is utilized to conduct a scenario analysis of energy saving opportunities up to the year 2035. The analysis is supported by detailed expert interviews in all cement plants of Taiwan. The simulation results reveal that by 2035, eighteen energy efficient technologies could result in 25% savings for electricity and 9% savings for fuels under the technical diffusion scenario. This potential totally amounts to about 5000 TJ/year, of which 91% can be implemented cost-effectively assuming a discount rate of 10%. Policy makers should support a fast diffusion of these technologies. Additionally, policy makers can tap further saving potentials. First, by decreasing the clinker share, which is currently regulated to a minimum of 95%. Second, by extending the prohibition to build new cement plants by allowing for replacement of existing capacity with new innovative plants in the coming years. Third, by supporting the use of alternative fuels, which is currently still a niche in Taiwan.     

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.     

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.     

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.     

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.     

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.     

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.     

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.