Analysis of energy use and CO2 emission in service industries: Evidence from Sweden

This study analyses the trends in energy use and CO₂ emissions for 19 sub-sectors in the Swedish service sectors following the classification of the International Standard Industrial Classification of all Economic Activities (ISIC) at the 2-digit level of aggregation over the period 1993–2008. This empirical study intends to examine energy use, energy efficiency and CO₂ emissions using data envelopment analysis (DEA) and panel data techniques. DEA is applied to assess energy efficiency within a production framework. Panel data techniques are used to determine which variables influence energy efficiency. The results show that Swedish services industries have increased energy consumption and CO₂ emissions in the period 1993–2008. The results from the DEA show significant variation in energy efficiency across service industries. The results also indicate that this sector has increased technical efficiency and energy efficiency while decreasing CO₂ emissions, especially in the later years of our sample period. The results of panel data techniques show that higher energy taxes, electricity consumption, investments and labour productivity generate higher energy efficiency, while higher fossil fuel consumption leads to lower energy efficiency. All findings of this study are important for developing effective energy policies that encourage better energy use and energy management in the service industries.     

CO2 emissions of Turkish manufacturing industry: A decomposition analysis

In this study, CO₂ emissions of Turkish manufacturing industry are calculated by using the fuel consumption data at ISIC revision 2, four digit level. Study covers 57 industries, for the 1995–2001 period. Log Mean Divisia Index (LMDI) method is used to decompose the changes in the CO₂ emissions of manufacturing industry into five components; changes in activity, activity structure, sectoral energy intensity, sectoral energy mix and emission factors. Mainly, it is found that changes in total industrial activity and energy intensity are the primary factors determining the changes in CO₂ emissions during the study period. It is also indicated that among the fuels used, coal is the main determining factor and among the sectors, 3710 (iron and steel basic industries) is the dirtiest sector dominating the industrial CO₂ emissions in the Turkish manufacturing industry.     

Global overview of industrial energy intensity

Given the need to reduce the CO₂ emissions coming from the manufacturing sector, it is important, for planning purposes, to know which countries and which manufacturing sub-sectors have the greatest potential for reducing energy use. Using data from the International Atomic Energy Agency and the United Nations Industrial Development Organization, the authors estimate trends in global decoupling of energy use and manufacturing value added, compare energy-use intensity in six country groups and estimate the potential for reducing energy use and CO₂ emissions under two scenarios and compare selected sub-sector energy intensity and estimate the potential for reducing energy use CO₂ emissions. The comparison of energy intensities across country groups and among countries suggests that there still remains significant potential to reduce energy use and associated CO₂ emissions. The analysis of four sub-sectors in developing and transition economies also shows similar but varied potential for reducing energy use and associated CO₂ emissions.     

Grey relation performance correlations among economics,energy use and carbon dioxide emission in Taiwan

This study explores the inter-relationships among economy, energy and CO₂ emissions of 37 industrial sectors in Taiwan in order to provide insight regarding sustainable development policy making. Grey relation analysis was used to analyse the productivity, aggregate energy consumption, and the use of fuel mix (electricity, coal, oil and gas) in relation to CO₂ emission changes. An innovative evaluative index system was devised to explore grey relation grades among economics, energy and environmental quality. Results indicate that a rapid increase in electricity generation during the past 10 years is the main reason for CO₂ emission increase in Taiwan. The largest CO₂ emitting sectors include iron and steel, transportation, petrochemical materials, commerce and other services. Therefore, it is important to reduce the energy intensity of these sectors by energy conservation, efficiency improvement and adjustment of industrial structure towards high value-added products and services. Economic growth for all industries has a more significant influence, than does total energy consumption, on CO₂ emission increase in Taiwan. It is also important to decouple the energy consumption and production to reduce the impacts of CO₂ on economic growth. Furthermore, most of the sectors examined had increased CO₂ emissions, except for machinery and road transportation. For high energy intensive and CO₂ intensive industries, governmental policies for CO₂ mitigation should be directed towards low carbon fuels as well as towards enhancement of the demand side management mechanism, without loss of the nation's competitiveness.     

Analysis on energy intensive industries under Taiwan's climate change policy

This study addresses the planning and implementation of energy, industry, and carbon economy policies concerning the development of the Taiwan's energy intensive industries from perspective of climate change. As a newly industrialized country, Taiwan attaches greater importance to the development of green energy and low-carbon industries, in cooperation with global pressure for carbon reduction due to climate changes, through energy and industrial conferences. Thus, in the past year the Taiwanese government constructed four laws concerning energy and carbon reduction in order to drive the green energy industry; furthermore, it plans to reduce current carbon emission benchmarks. Nevertheless, statistical analysis found that in the last decade, energy intensive industries have presented structural unbalance regarding energy consumption, CO₂ emissions, energy intensity, contributions to the GDP, and product value. Industries in the industrial sector have high energy consumption, high carbon emissions, and increase total domestic consumption and carbon emissions, which have disproportionate contributions to industrial added value; nevertheless, the government continues to approve investments for such energy intensive industries, and results in continuous increases in energy consumption and carbon emissions. This contradictory phenomenon indicates that newly industrialized countries rely on a manufacturing economic structure, which is difficult to adjust and violates the trends of a global low-carbon economy. Hence, the government must examine and adjust such unbalanced industrial structures, where such adjustments are executed in a fair and just manner, and encourage the development of high value-added measures for low-carbon manufacturing and service sectors to become equal with competitors in a global economy.     

Quantification of provincial-level carbon emissions from energy consumption in China

Greenhouse gas emission inventories are useful tools for monitoring air quality and assisting local policy development. This article estimates CO₂ emission inventories from energy consumption and carbon intensities of provinces and municipalities in Mainland China in 1990, 1995, 2000, and 2005–2008 using the IPCC mass balance approach. Results show that China's coal-based energy structure and unique economic development have heavily impacted CO₂ emissions. Fortunately, although coal consumption has increased to over 70% of all fuel use, the share of CO₂ emissions from coal has gradually decreased due to energy consumption restructuring. The switch from coal-dominance to cleaner, renewable energies (wind, solar, natural gas, nuclear power, geothermal, biomass energy) will undoubtedly reduce CO₂ emissions in China. Results also indicate that carbon intensity has improved steadily, as China's economic development introduces new technologies intended to minimize environmental pollution and destruction. Our results suggest that China's CO₂ emissions may not be as high as expected in future, and will gradually lessen.     

Marginal CO2 abatement costs: Findings from alternative shadow price estimates for Shanghai industrial sectors

Shanghai, one of the most developed cities in China, is implementing a pilot regional carbon emission trading scheme. Estimating the marginal abatement costs of CO₂ emissions for the industrial sectors covered in Shanghai's emission trading scheme provides the government and participating firms useful information for devising compliance policies. This paper employs multiple distance function approaches to estimating the shadow prices of CO₂ emissions for Shanghai industrial sectors. Our empirical results show that the overall weighted average of shadow price estimates by different approaches ranges between 394.5 and 1906.1 Yuan/ton, which indicates that model choice truly has a significant effect on the shadow price estimation. We have also identified a negative relationship between the shadow price of CO₂ emissions and carbon intensity, and the heavy industries with higher carbon intensities tend to have lower shadow prices. It has been suggested that Shanghai municipal government take various measures to improve its carbon market, e.g. using the marginal abatement costs of participating sectors/firms as a criterion in the initial allocation of carbon emission allowances.     

Foreign trade and declining pollution in Sweden: a decomposition analysis of long-term structural and technological effects

This article examines whether there exists any causal relationship between foreign trade and declining pollution in developed countries. In other words, do developed countries outsource their problems to less developed countries rather than solve them? The case study is the Swedish economy and the two environmental indicators employed are energy consumption and CO₂ emissions. No causal relationships are found, since Sweden has long been a net exporter of embodied energy and CO₂ and continues to be so after 1970, when energy consumption stabilizes and CO₂ emissions decline. In addition, the ratios of net exported energy and CO₂ to total consumption remain stable, which means there were no effects on the energy intensity or CO₂ intensity either. These results suggest that internal forces, like efficiency improvements, changed consumption patterns and transformation of the energy system, have been crucial for relative environmental improvement in Sweden, while foreign trade has played no role.     

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.     

The impact of fiscal and other measures on new passenger car sales and CO2 emissions intensity: Evidence from Europe

This paper examines the impact of national fiscal measures in the EU (EU15) on passenger car sales and the CO₂ emissions intensity of the new car fleet over the period 1995–2004. CO₂ emissions and energy consumption from road transport have been increasing in the EU and as a result since 1999 the EU has attempted to implement a high profile policy strategy to address this problem at European level. Less prominent is the fact that Member States apply vehicle and fuel taxes, which may also be having an impact on the quantity of passenger cars sold and their CO₂ emissions intensity. Diesel vehicle sales have increased appreciably in many countries over the same period and this study makes a first attempt to examine whether Member State fiscal measures have influenced this phenomenon. This work uses a panel dataset to investigate the relationship between national vehicle and fuel taxes on new passenger car sales and the fleet CO₂ emissions intensity in EU15 over a 10-year period. Our results show that national vehicle and fuel taxes have had an impact on passenger car sales and fleet CO₂ emissions intensity and that different taxes have disparate effects.     

An integral evaluation of dieselisation policies for households’ cars

Reducing energy consumption and CO₂ emissions in the transport sector is a priority for Great Britain and other European countries as part of their agreements made in the Kyoto protocol and the Voluntary Agreement. To achieve these goals, it has been proposed to increase the market share of diesel vehicles which are more efficient than petrol ones. Based on partial approaches, previous research concluded that increasing the share of diesel vehicles will decrease CO₂ emissions (see 1 and 18; Zervas, 2006). Unlike these approaches, I use an integral approach based on discrete choice models to analyse diesel vehicle penetration in a broader context of transport in Great Britain. I provide for the first time, empirical evidence which is in line with Bonilla's (2009) argument that only improvements in vehicle efficiency will not be enough to achieve their goals of mitigation of energy consumption and CO₂ emissions. The model shows the technical limitations that the penetration of diesel vehicles faces and that a combination of improvements in public transportation and taxes on fuel prices is the most effective policy combination to reduce the total amount of energy consumption and CO₂ emissions among the analysed dieselisation polices.     

Contributing to local policy making on GHG emission reduction through inventorying and attribution: A case study of Shenyang,China

Cities consumed 84% of commercial energy in China, which indicates cities should be the main areas for GHG emissions reduction. Our case study of Shenyang in this paper shows how a clear inventory analysis on GHG emissions at city level can help to identify the major industries and societal sectors for reduction efforts so as to facilitate low-carbon policy-making. The results showed total carbon emission in 2007 was 57 Mt CO₂ equivalents (CO₂e), of which 41 Mt CO₂e was in-boundary emissions and 16 Mt CO₂e was out-of-boundary emissions. The energy sector was dominant in the emission inventory, accounting for 93.1% of total emissions. Within energy sector, emissions from energy production industry, manufacturing and construction industry accounted for 88.4% of this sector. Our analysis showed that comparing with geographical boundary, setting system boundary based on single process standard could provide better information to decision makers for carbon emission reduction. After attributing electricity and heating consumption to final users, the resident and commercial sector became the largest emitter, accounting for 28.5% of total emissions. Spatial analysis of emissions showed that industrial districts such as Shenbei and Tiexi had the large potential to reduce their carbon emissions. Implications of results are finally discussed.     

Sustainable energy transition: the case of the Swedish pulp and paper industry 1973–1990

By employing historical case study methodology, this paper examines the transition towards renewable energy and increased energy efficiency in the Swedish pulp and paper industry (PPI) during the 1970s and 1980s. Between 1973 and 1990, CO₂ emissions were cut by 80 % in this sector, and this was mainly achieved by substituting away from oil to biofuels in the form of by-products from the pulp manufacturing process. The CO₂ reduction was also a result of energy efficiency improvements and increased internal production of electricity through back-pressure turbine power generation. Sweden was highly dependent on oil at the advent of the first Oil Crisis in 1973, and the increased oil prices put pressure on the Swedish government and the energy-intensive PPI to reduce this oil dependency. Of central importance for the energy transition was the highly collaborative strategy of the PPI, both internally among pulp mills as well as between the sector as a whole and the corporatist Swedish state administration. The Swedish government chose a proactive strategy by emphasizing knowledge management and collaboration with the industry along with the substitution of internal biofuels for oil. The transition was also characterized by a strong focus on unutilized potentials in the PPI; a previous waste problem now could be transformed into energy savings and improved energy efficiency. Energy taxes and fees also played an important role in Swedish energy policy during the 1970s and the 1980s. All in all, the study illustrates the central role of governments and their ability to push industrial sectors into new technological pathways through a wide palette of mutually reinforcing policy instruments. The results further point at the importance of a more holistic understanding of the interplay between different policies and their impacts in the longer run.     

Decomposition analysis and mitigation strategies of CO2 emissions from energy consumption in South Korea

Energy-related CO₂ emissions in South Korea have increased substantially, outpacing those of Organisation for Economic Co-operation and Development (OECD) countries since 1990. To mitigate CO₂ emissions in South Korea, we need to understand the main contributing factors to rising CO₂ levels as part of the effort toward developing targeted policies. This paper aims to analyze the specific trends and influencing factors that have caused changes in emissions patterns in South Korea over a 15-year period. To this end, we employed the Log Mean Divisia index method with five energy consumption sectors and seven sub-sectors in terms of fuel mix (FM), energy intensity (EI), structural change (SC) and economic growth (EG). The results showed that EG was a dominant explanation for the increase in CO₂ emissions in all of the sectors. The results also demonstrated that FM causes CO₂ reduction across the array of sectors with the exception of the energy supply sector. CO₂ reduction as a function of SC was also observed in manufacturing, services and residential sectors. Furthermore, EI was an important driver of CO₂ reduction in most sectors except for several manufacturing sub-sectors. Based on these findings, it appears that South Korea should implement climate change policies that consider the specific influential factors associated with increasing CO₂ emissions in each sector.     

Comprehensive evaluation of industrial CO2 emission (1989–2004) in Taiwan by input–output structural decomposition

Taiwan currently emits approximately 1% of the world's CO₂—ranking it 22nd among nations. Herein, we use the input–output (I–O) structural decomposition method to examine the changes in CO₂ emission over a 15-year period. By decomposing the CO₂ emission changes into nine factors for the periods of 1989–1994, 1994–1999, and 1999–2004, we have identified the key factors causing the emission changes, as well as the most important trends regarding the industrial development process in Taiwan. The 5-year increment with the largest increase of CO₂ emission was that of 1999–2004, due to the rapid increase of electricity consumption. From the decomposition, the industrial energy coefficient and the CO₂ emission factors were identified as the most important parameters for the determination of the highway, petrochemical materials, iron and steel, the commercial sector, and electric machinery as the major sources of increased CO₂ emission during the past 15 years. From 1989 to 2004, the level of exports and the level of domestic final demand were the largest contributors to the increase in the total increment of CO₂ change. During 1989–2004, the industrial energy coefficient and CO₂ emission factors, being minimally significant during 1989–1994, became extremely important, joining the domestic final demand and the level of exports factors as the major causes of the increase increment of CO₂. This indicates a heavy reliance upon high-energy (and CO₂) intensity for Taiwanese industries; therefore, continuous efforts to improve energy intensity and fuel mix toward lower carbon are important for CO₂ reduction, especially for the electricity and power generation sectors. Relevant strategies for reducing carbon dioxide emissions from major industries are also highlighted.     

Does the use of renewable energy sources mitigate CO2 emissions? A reassessment of the US evidence

Previous research on the determinants of CO₂ emissions has concluded that, although increasing nuclear energy consumption can help to mitigate emissions, increasing use of renewable energy sources is not effective in this regard. These studies, however, do not consider energy prices as a possible driver of energy demand (and hence of emissions) and we find that this omission and the choice of functional form materially alters the outcome in the US case. Specifically, our cointegration and Granger-causality test results indicate that CO₂ emission levels are negatively related to the use of renewable energy, but are unrelated to nuclear energy consumption.     

Welfare effects of emission taxes in Norway

The welfare effects of introducing taxes on emissions of carbon dioxide is analysed within an empirical general equilibrium model of the Norwegian economy. A CO₂ tax regime where we aim at stabilizing the CO₂ emissions at the 1990 emission level in 2020 is compared to a reference scenario without such taxes. In the simulations introduction of CO₂ taxes reduces gross domestic product, but increases net national real disposable income, private consumption and money metric utility. This difference in sign is due to a positive terms of trade effect; some of the CO₂ taxes will be paid by foreigners through exports. The welfare effects differ from household to household depending on the composition of their total consumption. Poor households are less favourably affected than rich households, due to smaller budget shares for the rich households on consumer goods which imply relatively much CO₂ emissions.     

Driving forces of rapid CO2 emissions growth: A case of Korea

This study aims to investigate Korea's final demand structure and its impacts on CO₂ emissions in order to reduce CO₂ emissions and develop environmental policy directions. Based on the environmentally extended input–output model, this study adopts a two-step approach: (1) to estimate the embodied emissions and their intensities for 393 sectors induced by final demand; and (2) to calculate the driving factors of emission growth between 2003 and 2011 and then evaluate the result by using Structural Decomposition Analysis (SDA). The findings of this study demonstrate that the impact of composition change in export with less embodied emission intensities tends to offset the increase in CO₂ emission by the export scale growth. The relatively low residential electricity price has resulted in the rapid growth of household electricity consumption and significantly contributed to emissions growth. The result of SDA indicates that Korea's final demand behavior yielded high carbonization over the same period. The findings suggest that Korean government should promote exports in industries with less embedded CO₂ in order to protect environments. In addition, emission information of each product and service should be provided for consumers to change their purchase patterns towards contributing to low carbon emissions as active players.     

CO2 emissions embodied in China–US trade: Input–output analysis based on the emergy/dollar ratio

To gain insight into changes in CO₂ emissions embodied in China–US trade, an input–output analysis based on the emergy/dollar ratio (EDR) is used to estimate embodied CO₂ emissions; a structural decomposition analysis (SDA) is employed to analyze the driving factors for changes in CO₂ emissions embodied in China's exports to the US during 2002–2007. The results of the input–output analysis show that net export of CO₂ emissions increased quickly from 2002 to 2005 but decreased from 2005 to 2007. These trends are due to a reduction in total CO₂ emission intensity, a decrease in the exchange rate, and small imports of embodied CO₂ emissions. The results of the SDA demonstrate that total export volume was the largest driving factor for the increase in embodied CO₂ emissions during 2002–2007, followed by intermediate input structure. Direct CO₂ emissions intensity had a negative effect on changes in embodied CO₂ emissions. The results suggest that China should establish a framework for allocating emission responsibilities, enhance energy efficiency, and improve intermediate input structure.     

Can carbon emission trading scheme achieve energy conservation and emission reduction? Evidence from the industrial sector in China

Whether the emission trading scheme (ETS) can achieve energy conservation and emission reduction in developing countries is crucial for these countries to achieve sustainable economic and environmental development. This study investigates the energy conservation and emission reduction effects of China's carbon dioxide (CO₂) ETS pilot policy implemented in 2011. Based on panel data of the two-digit industry at province level from 2005 to 2015, we adopt the difference-in-differences (DID) model to examine the effects of the CO₂ ETS on energy conservation and emission reduction. The results show that the CO₂ ETS decreases the energy consumption of the regulated industries in pilot areas by 22.8% and the CO₂ emissions by 15.5% compared to those in nonpilot areas. Further analysis indicates that the policy effects are mainly driven by improving technical efficiency and adjusting industrial structure. In addition, we find that the CO₂ ETS performs better in areas with high levels of environmental enforcement and marketization. Overall, our findings suggest that the CO₂ ETS has achieved energy conservation and emission reduction effects in developing countries.