Energy efficiency and productivity change of China’s iron and steel industry: Accounting for undesirable outputs

This paper used data from 50 enterprises in China’s iron and steel industry to evaluate their energy efficiency and productivity change. The study first used a conventional data envelopment analysis model and the Malmquist Productivity Index (MPI) to measure the energy efficiency and productivity change over the period 2001–2008. The results indicated inefficiency in many of the plants: The average energy efficiency was only 61.1%. The annual growth rate of productivity was 7.96% over this period and technical change was the main contributor to this growth. The research then took undesirable outputs into consideration by using the Malmquist–Luenberger Productivity Index (MLPI) to explore the productivity change from 2006 to 2008. Omitting undesirable outputs would result in biased efficiency change and technical change. This paper also claimed that environmental regulation has a potentially positive impact on technical change.     

Building energy index and end-use energy analysis in large-scale hospitals—case study in Malaysia

Hospital energy consumption is relatively high, while saving energy and reducing cost comprise one of the most important challenges considered by the majority of building designers, engineers, and decision makers. An end-use energy analysis was conducted in a large-scale hospital in Malaysia to identify energy apportioning and energy end use in the areas of air conditioning, lifts, lighting, equipment, and others. The analysis was carried out by assessing the collected desktop and field data as well as some calculations. The Building Energy Index (BEI) was calculated to compare the consumption levels in the selected hospital, which is a typical hospital building, with other hospitals in Malaysia as well as low energy buildings and Malaysian standards. The main energy source in this case study was electricity with a supply of around 75 % of total energy consumption. The current average annual electricity consumed by this hospital was 44,637,966 kWh, out of which 63 % was used by air conditioning systems and 17 % by lighting. The BEI comparison revealed that the calculated BEI of 384 kWh/m²/year is significantly higher than Malaysian rating systems and standards which recommend 200 kWh/m²/year for hospitals, 135 kWh/m²/year for commercial sectors, and is higher than previously observed hospitals with a BEI of less than 300 kWh/m²/year.     

Seasonal relationship of peak demand and energy impacts of energy efficiency measures—a review of evidence in the electric energy efficiency programmes

While energy efficiency programmes traditionally focus on energy savings, there is also a policy interest in their impact on system peak demand. Examples include demand-side management, integrated resource planning and recent developments to integrate energy efficiency into forward capacity markets. However, there is only limited research on the relationship between peak demand impacts and overall energy savings from efficiency measures, although this relationship can have important bearings on efficiency programmes. This paper reviews utility efficiency programmes in nine jurisdictions in North America and analyses how the seasonal peak-energy relationship differs between commercial and industrial (C&I) and residential sectors, among efficiency measures. In terms of the seasonal difference in peak demand impacts, these programmes show that residential lighting and residential water heating can deliver greater peak savings in weekday early evening winter peak periods. By contrast, C&I lighting and residential appliances make higher peak savings in weekday afternoon summer peak periods. A seasonal difference is more significant in lighting, especially residential lighting, than other measures. The evidence from North America also suggests that space cooling in both sectors and C&I lighting may well make greater peak savings relative to non-peak impacts than other measures during summer peak periods, while in winter peak periods, residential lighting can achieve greater peak savings relative to non-peak impacts. This review highlights the significance of regional electricity use patterns along with climatic and regulatory conditions and indicates how further research may contribute to appropriate electricity demand reduction programme design and monitoring regimes in particular regions.     

Where to produce rapeseed biodiesel and why? Mapping European rapeseed energy efficiency

Rapeseed is widely used to produce biodiesel, especially in Europe. In several studies, it has been shown that there is a good potential for growing this crop across the continent. However there is still little awareness that the energy efficiency of biofuel production from rapeseed is very low. Energy efficiency can be expressed in terms of Energy Return for Energy Invested (EROEI). We mapped EROEI values for all EU countries plus Switzerland based on expected yields derived from rapeseed suitability maps. We find that EU countries produce rapeseed biofuel with EROEI values of 2.2 and lower. We suggest that plans for biofuel cropping have to be supplemented by maps of EROEI. It is not only relevant to show where rapeseed can be grown, but we should also look at where its use for bioenergy can be efficient. In the area theoretically suitable for growing rainfed rapeseed (excluding unsuitable areas and water), 37.6% of the area can produce rape methyl ester (RME) biofuel only with an energy loss. We conclude that the energy efficiency of rapeseed biodiesel is low and spatially heterogeneous, and unless there are major technological improvements in the production process, replacing fossil fuels by biofuels from rapeseed is hardly a feasible option.     

Monitoring energy efficiency trends in European industry: Which top-down method should be used?

Several index decomposition methods are commonly employed to provide a top-down view of energy consumption trends in manufacturing industry. These approaches typically use value added data for an industrial sector to decompose energy trends into structural, intensity and activity effects. Additionally in Europe a commonly employed top-down indicator called ODEX uses units of physical output, rather than value added, to analyse energy efficiency developments only. Therefore it has been difficult to compare ODEX directly to decomposition approaches. This paper presents a new decomposition method called VALDEX, based on the existing ODEX methodology, but using value added data. Extending ODEX to a full decomposition method allows tests commonly used in index decomposition theory to be applied and enables direct comparison with other methods. This helps evaluate the robustness of the existing ODEX methodology. Using industry data from three European countries, the results yielded by five decomposition methods are compared. In the cases examined, both the Laspeyres and VALDEX methods have significant residuals. Laspeyres consistently overestimates total energy consumption while VALDEX underestimates it. Methods that produce small or no unexplained residuals give converging results for each effect for the countries analysed, and provide a more reliable view of energy trends.     

LMDI decomposition analysis of energy consumption in Andalusia (Spain) during 2003–2012: the energy efficiency policy implications

The aim of this paper is to analyse the changes in final energy consumption in Andalusia through logarithmic mean Divisia index (LMDI) decomposition analysis during the period 2003–2012. The results lead us to conclude that a reduction of final energy (FE) consumption of 1 % took place as a result of a diminishing in structural effect by 11 % and an increase in the activity effect and intensity effect by 7.4 and 3.5 %, respectively. Chain-linked LMDI decomposition shows the existence of two sub-periods, with a turning point in 2008. The first period, coinciding to a great extent with the Andalusian Energy Plan 2003–2006 (PLEAN), showed an increase in final energy consumption, mostly due to the activity effect but also to the intensity effect. The second period, coinciding with the implementation of the Andalusian Sustainable Energy Plan 2007–2013 (PASENER), shows a reduction in the activity, structure and intensity effects. The results allow us to conclude that many of the energy efficiency measures, implemented through the PASENER, are related to sectors that experienced a decline in energy consumption due to the intensity effect, such as transport, primary and service sectors. Additionally, although they were included in PASENER, more policy attention should be given to the energy transformation, residential and industrial sectors which increased the demand for energy due to the intensity effect during this period. Finally, the energy-saving behaviour of economic agents due to the economic downturn should also be considered as an explanation for the diminishing in energy consumption during this sub-period.     

Improving households’ access to electricity and energy consumption pattern in Nigeria: Renewable energy alternative

Access to substantial quantity and quality energy infrastructures is essential to rapid and sustainable economic development. Access to modern energy services directly contributes to economic growth and poverty reduction through the creation of wealth. No country can develop and sustain beyond subsistence means without having at least minimum access to energy services for the larger portion of its population. The present study examines the households’ access to modern energy (electricity) services and pattern of energy consumption in Nigeria. It was found that the access to modern form of energy in the country is very low despite the country's abundant energy endowment. Greater proportions (over 40%) of Nigerian households do not have access to electricity and still depend largely on traditional forms of energy (e.g., firewood, kerosene, etc.) as energy sources. However, Nigeria is abundantly endowed with renewable energy resources. This can be significantly developed to generate modern and clean electricity to meet the yearning demand of its citizens without imposing serious hazard on the environment.     

Does energy efficiency improve technological change and economic growth in developing countries?

Does a trade-off exist between energy efficiency and economic growth? This question underlies some of the tensions between economic and environmental policies, especially in developing countries that often need to expand their industrial base to grow. This paper contributes to the debate by analyzing the relationship between energy efficiency and economic performance at the micro- (total factor productivity) and macro-level (countries' economic growth). It uses data on a large sample of manufacturing firms across 29 developing countries to find that lower levels of energy intensity are associated with higher total factor productivity for the majority of these countries. The results are robust to a variety of checks. Suggestive cross-country evidence points towards the same relation measured at the macro-level as well.     

Wind energy in Brazil—present and future

In Brazil, the power generation is predominantly hydroelectric, corresponding approximately to 91.4% of the installed capacity. The energy crisis in the Brazilian electric sector meant the end of the centralized generation and the launching of a decentralized generation approach aiming to add to the existing plants through small- and medium power capacity. Such a condition matches the wind energy characteristic profile. In northeastern Brazil is one of the most promising areas for wind exploitation, where the largest wind speed occurs exactly when the rate of flow in Sao Francisco river, which accounts for all the power energy supply of the northeast region, is low. Thus, during this critical period, the wind farms can produce electrical energy, saving the Sao Francisco waters and on top of that with no environmental risk, thus contributing to the overall reduction of CO₂ emission in the atmosphere. Because of those factors, the National Electrical Energy Agency (ANEEL), the Brazilian regulatory authority, has approved 77 projects for construction of wind farms, attracting foreign investment, besides the installation of wind turbine industries. The increasing use of the wind energy is prevailing over the absence of a specific legislation for the sector, but the National Congress has already taken some measures such as the act bill no. 2905/2000 and the temporary measure no. 14/2001.     

Enhancement of energy generation efficiency in industrial facilities by SOFC – SOEC systems with additional hydrogen production

Industry is one of the highest energy consumption sector: some facilities like steelworks, foundries, or paper mills are highly energy-intensive activities. Many countries have already implemented subsidies on energy efficiency in generation and utilisation, with the aim of decreasing overall consumption and energy intensity of gross domestic product. Meanwhile, researchers have increased interest into alternative energy systems to decrease pollution and use of fossil fuels. Hydrogen, in particular, is proposed as a clean alternative energy vector, as it can be used as energy storage mean or to replace fossil fuels, e.g. for transport.This work analyses the re-vamping of the energy generation system of a paper mill by means of reversible solid oxide cells (RSOCs). The aim is not only to increase efficiency on energy generation, but also to create a polygeneration system where hydrogen is produced. Application on a real industrial facility, based in Italy with a production capacity of 60000 t/y of paper, is analysed. First, the current energy system is studied. Then, a novel system based on RSOC is proposed. Each component of the systems (both existing and novel) is defined using operational data, technical datasheet, or models defined with thermodynamic tools. Then, the interaction between them is studied. Primary energy analysis on the novel system is performed, and saving with respect to the current configuration is evaluated. Even if the complexity of the system increases, results show that saving occurs between 2 and 6%. Hydrogen generation is assessed, comparing the RSOC integrated system with proton exchange membrane (PEM) electrolysis, in terms of both primary energy and economics. Results exhibit significant primary energy and good economic performance on hydrogen production with the novel system proposed (hydrogen cost decreases from 10 €/kg to at least 8 €/kg).     

Building energy saving potential in Hot Summer and Cold Winter (HSCW) Zone,China—Influence of building energy efficiency standards and implications

Hot Summer and Cold Winter (HSCW) region plays an important role in China's building energy conservation task due to its high consumption in recent years for both climate and social reasons. National and local building energy standards according to which the buildings are built and operated can affect the building energy consumption to a great extent. This study investigated the energy saving potential in Hot Summer and Cold Winter Zone under different level of energy efficiency standards (China local, China national, and UK standard). Chongqing was taken as an example, and the commercial energy simulation tool eQuest was applied to analyze the building end-use energy. With the existing situation as a baseline, the building energy saving for residential section could achieve 31.5% if the Chinese national standard were satisfied, and the value would further increase to 45.0% and 53.4% when the Chongqing local and UK standard were met. For public buildings, the corresponding energy saving potentials were 62.8%, 67.4% and 75.9%. Parameter sensitivity analysis was conducted. The analysis was able to provide suggestions on energy saving implementation priorities for residential and public buildings. Indications to improve building energy standards and their implementation were also discussed.     

Has energy efficiency performance improved in China?—non-energy sectors evidence from sequenced hybrid energy use tables

We conduct a comparative analysis of two energy efficiency indicators for China: heating value energy intensity (HEI) and economic value energy intensity (MEI). We formulate 1997–2002–2007–2012 hybrid energy comparable sequence use tables in an input-output accounting framework, and compare the two indicators using a randomized block ANOVA. The results show that MEIs and HEIs have significantly different variability patterns among sectors and are evolutionarily divergent over time. The directional changes in MEI and HEI are found to be inconsistent at both the sectoral and national levels. A further analysis with a LMDI index decomposition model shows that the difference between HEI LMDI and HEI LMDI is principally caused by energy prices. Based on the evidence from the two indicators and their relationship to energy prices, we are unconvinced about China's purported improvements in energy efficiency in recent years.     

Economic growth,urbanization and energy consumption — A provincial level analysis of China

As the largest developing country, with fast-paced economic growth, China's development has been characterized by a high degree of energy consumption, high level of heavy industry, international trade and urbanization progress. In this study, we extend the current literature by incorporating urbanization, energy consumption and international trade into a production function using a panel data set model over the period from 2001 to 2012. The results show that urbanization and capital are the major contributors to China's economic growth. Meanwhile, there exists a “U-shaped” relationship between urbanization and economic growth; that heavy industry exerts a significant negative effect on economic growth using system generalized methods of moments (GMM-sys) estimation methods; and the relationship between international trade and economic growth is mixed and no consistent results support the conclusion that the international trade promotes economic growth. Adjusting the industry and trade structure in economic growth is the priority for the policy makers.     

Cost-effectiveness of energy efficiency programmes—evaluating the impacts of a regional programme in France

This paper presents the evaluation of a regional energy efficiency programme implemented in two “départements” of France. électricité de France (EDF), a French energy company, provides refurbishment advice and financial incentives to end-users in the residential sector as well as specific training courses and certification to local installation contractors and building firms. Refurbishment measures analysed in this paper are efficient space heating equipment (condensing boilers, heat pumps and wood stoves or boilers), solar water heating systems and the installation of double-glazed windows. A billing analysis based on a survey of programme participants’ energy consumption is used to calculate the energy savings attributed to the programme. In order to receive an economic feedback of this demonstration programme, the evaluation of both saved energy and programme costs is of importance. Detailed knowledge of the programme’s cost-effectiveness is essential for EDF to achieve the saving obligations imposed by the French White Certificate scheme at the lowest cost. Results of this evaluation can support the development and implementation of further energy efficiency programmes with similar characteristics in other regions of France. The cost-effectiveness is determined from the perspective of the programme participant and the society as well as the energy company in charge of the programme. All cost and benefit components are calculated in Euro per kilowatt-hour, which allows a direct comparison of levelized costs of conserved energy with the avoidable costs of the energy supply system.     

German and Norwegian policy approach to residential buildings’ energy efficiency—a comparative assessment

Buildings in private and domestic use are responsible for about 30% of the global greenhouse gas emissions attributable mainly to their need for heating and cooling energy. This corresponds to about 40% of the global final energy consumption. Therefore, a viable implementation of building energy efficiency policies is inevitable to realize a transformation of the energy system to mitigate climate change. Within the building sector lies a huge potential for emission reduction consisting in the renovation of the existing building stock and climate-friendly building guidelines applicable to new constructions, both adapting CO₂-neutral technology solutions. However, as there are several different pathways leading to a decarbonized energy system, there is always the question which political and technological solutions are most efficient, effective, and feasible. This paper aims to analyze building efficiency policy measures and instruments and the related technological solutions in two front-runner countries of the energy transition, possessing different structural conditions: Germany and Norway. We hence apply a comparative approach which allows us to present and assess the policies in place. The paper answers three research questions: (1) Which policies prevail in Germany and Norway to foster the deployment of energy efficient and decarbonized solutions for residential buildings? (2) How do these policies respond to country-specific barriers to the energy transition in the building sector, and (3) What effects do they have on the actual implementation of technological and societal solutions? This research provides a new insight to the highly relevant topic of energy efficiency in buildings in the context of international Intended Nationally Determined Contribution benchmarking and discusses some unsolved trade-offs in the translation of the global climate governance into the national building sector.     

Hydrogen energy research and development in India—an overview

India is trying hard to improve the standard of living of its peoples, and therefore increase the energy consumption. Amongst the many options. India is also researching the various aspects of the hydrogen energy system. This paper presents an overview of hydrogen energy research and development work in India, starting with a summary of the energy situation in the country.     

Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?

An analytical job creation model for the US power sector from 2009 to 2030 is presented. The model synthesizes data from 15 job studies covering renewable energy (RE), energy efficiency (EE), carbon capture and storage (CCS) and nuclear power. The paper employs a consistent methodology of normalizing job data to average employment per unit energy produced over plant lifetime. Job losses in the coal and natural gas industry are modeled to project net employment impacts. Benefits and drawbacks of the methodology are assessed and the resulting model is used for job projections under various renewable portfolio standards (RPS), EE, and low carbon energy scenarios We find that all non-fossil fuel technologies (renewable energy, EE, low carbon) create more jobs per unit energy than coal and natural gas. Aggressive EE measures combined with a 30% RPS target in 2030 can generate over 4 million full-time-equivalent job-years by 2030 while increasing nuclear power to 25% and CCS to 10% of overall generation in 2030 can yield an additional 500,000 job-years.     

Trends of energy efficiency in Finnish road freight transport 1995–2009 and forecast to 2016

A framework for modeling and analyzing the energy efficiency of road freight transport is presented in this paper. This framework is tested by using the data from the Finnish Goods Transport by Road statistics. The data was enhanced by calculating the fuel consumption for each trip in the data. To calculate this, weight-fuel consumption functions were estimated for each Euro-class vehicles and road type. This is a new method for analyzing the energy efficiency of road freight transport and it could be applied also in other countries gathering freight transport data with continuous company surveys. The analysis show that the energy efficiency of road freight transport in Finland improved during 1995–2002, but has declined since. The major drivers in the development have been the changes in the level of empty running and vehicle fuel efficiency. Extrapolating current statistical trends of factors that influence the energy efficiency show that the target set by the Finnish government for improving energy efficiency by 9% until 2016 will not be achieved. However, the target is possible to be achieved by a combination of small changes to some determinants.     

The energy sector in Eritrea—institutional and policy options for improving rural energy services

The energy consumption patterns and in particular, those of the rural household and small and medium enterprises (SMEs) in Eritrea are assessed. Eritrea's total final energy consumption in 1998 was estimated to be around 619,580 toe, of which 68% was consumed by the household sector, 16% by the commercial/public sector, 13% by transport and 3% by industry. The sources of energy were 66.3% biomass based (fuelwood, dung, charcoal, agri-residue), 31% oil products and 2% electricity. It is also noted that 98% of the rural population and 20% of the urban residents do not have access to electricity. Over 80% of the energy needs of rural enterprises is met by biomass or animate/human labour. To analyse the root problems hindering the wider dissemination of modern energy services to rural areas, two key hypotheses related to policy and institutional framework were selected and tested. The findings indicate that Eritrea has general energy policies pertaining to the development of electricity, oil and renewable energy sub-sectors for the benefit of the public and the economy. The absence of sharply focussed, pro-rural energy policy and/or their policy instruments has been observed. The key problem is, however, the weakness in implementation of rural energy projects and programmes. This is mainly due to inappropriate institutional structure and/or gaps in the structure, in addition to lack of corporate culture; poor incentives for workers; and, poor linkages among the various stakeholders concerned in energy for rural development.     

Do undesirable output and environmental regulation matter in energy efficiency analysis? Evidence from Indian Cement Industry

Energy use in the production of desirable output often results in the generation of undesirable emission with detrimental impact on the environment, and whose disposal is frequently monitored by public authorities. Previous studies, however, paid little attention to undesirable output and environmental regulation related to its disposal while estimating energy use efficiency. Analysis of energy efficiency ignoring undesirable output could result in biased estimates of efficiency. Thus the aim of this paper is to estimate energy use efficiency in the presence of energy related undesirable emission by taking Indian cement industry as a suitable context of my analysis. Depending on the presence and absence of undesirable output and environmental regulation, three measures of efficiency have been estimated at the state level from 2000–01 to 2004–05 by applying Data Envelopment Analysis. Energy efficiency is defined as the ability of the producer to reduce the energy input to the largest extent possible, conditional on the given level of output and non-energy inputs. Empirical results reveal that energy efficiency estimates are biased if only desirable output is considered. Results also demonstrate that environmental regulation has a reinforcing effect on energy use efficiency.