Dealing with barriers to energy efficiency and SMEs: Some empirical evidences

This paper aims at providing an identification and an analysis of the most relevant barriers to energy efficiency that limit a widespread implementation of the Best Available Technologies and Practices (BAT/Ps) through the investigation of 128 non-energy intensive manufacturing Small and Medium-sized Enterprises (SMEs) in Northern Italy. The study, starting from the existing literature, performs an investigation of the operational difficulties occurring when it has been decided to undertake the process of investing resources in energy efficiency interventions. The most perceived barriers have been analyzed with respect to several important characteristics (among others, sector and firm’s size). This examination shows also that very much attention should be paid to avoid bundling together SMEs of different sizes and sectors, since different behaviors with respect to the perception of the barriers can be observed. The analysis of the sample presents some interesting trends considering the perception of the barriers with respect to previous experience of the enterprises on energy efficiency. The paper also explores, through a preliminary analysis, the correlations among questions in order to understand the dynamics and the possible effects of a given barrier with respect to others. Several suggestions for future research in this important area have been provided.     

Classification of drivers for industrial energy efficiency and their effect on the barriers affecting the investment decision-making process

Industrial energy efficiency represents a priority for European industrial competitiveness. Many studies offer contributions providing evidence of the existence of driving forces supporting the adoption of energy efficiency measures, but a structured approach to drivers for industrial energy efficiency is still lacking. Therefore, in the present study, we propose a definition of drivers, making emphasis on the industrial decision-maker perspective, that is needed for their classification here proposed. Focus is given to point out the difference between internal and external drivers, highlighting the major stakeholders responsible for their promotion. Drivers are further categorized into: regulatory, economic, informative, and vocational training. Moreover, we propose a framework describing the effect of drivers on barriers in the decision-making process, as well as a preliminary identification of the major stakeholders to promote drivers. The study opens several opportunities for further research in the area of industrial energy efficiency.     

Marketing energy efficiency: perceived benefits and barriers to home energy efficiency

Energy efficiency contributes significantly to the reduction of greenhouse gas emissions and the associated mitigation of climate change. The uptake of energy efficiency measures in the residential sector requires significant effort on the part of homeowners or residents. Past research has revealed that cost savings and social interaction motivate energy efficiency behavior. This study expands on this research by examining the hypothesis that there are regional differences in what motivates individuals to implement home energy efficiency upgrades. Two surveys (N?=?320 and N?=?423) examine the perceived benefits of and barriers to undertaking home energy efficiency improvements in varying geographic regions across the USA and test marketing materials that target these benefits and barriers. The hypothesis that there are regional differences in perceptions of energy efficiency was confirmed. Cost savings were found to be the most important benefit to individuals across the country. Energy efficiency being a good investment is either the second or third most important benefit across all regions. Increased comfort is the last of the top three most important benefits to those in the South and Midwest, while those in the Northeast demonstrated interest in the increase in home retail value associated with energy efficiency, and those in the West found the environmental benefits to be important. High costs of energy efficiency improvements were found to be the most commonly perceived barrier. Reported likelihood to enroll in a home energy efficiency program offered by one’s employer was predicted by perceived likelihood that coworkers would enroll, income level, and personal opinions about the importance of energy efficiency.     

某机械企业能效评价指标体系的构建

运用层次分析法,建立了四级能效评价指标体系,提出能效评价指标体系,没有局限于产品单耗指标,而是将指标体系逐步扩展到某些关键性的工艺参数指标和操作指标,有利于企业开展更细致的差异分析,更准确地找到能效的关键影响因素。     

The impact of energy prices on energy consumption and energy efficiency: evidence from Taiwan

This study aims to explore the impact of energy prices on energy consumption and energy efficiency using industry data for Taiwan over the period of 1982–2011. A frontier-based framework is proposed with a microeconomic foundation to measure energy efficiency and decompose energy consumption into energy utilization and energy wastage in the short and the long run. We learn that the traditional energy efficiency indicators are essentially ambiguous measures. In contrast, the frontier-based framework can focus the measure on energy relatively specifically and capture the essence of a proper efficiency measure more precisely. The empirical analyses reveal that the values of short- and long-run energy efficiency in the Taiwan manufacturing sector are on average 0.6016 and 0.8040, respectively. Moreover, energy utilization is price inelastic in the short run, but in the long run, it is elastic at ?0.79. The energy price elasticity of energy wastage in the short run is ?0.61, which is somewhat higher than the ?0.52 in the long run. The energy price elasticity of energy efficiency in the short run is 0.077 and that in the long run is 0.144. All the energy price elasticities obtained using the frontier-based framework are lower than those obtained using the common framework of the past without distinguishing the heteroscedasticity between the energy utilization and energy wastage.     

The effects of energy price on energy intensity: evidence from Canadian manufacturing sector

This study provides estimates for the long-run elasticity of energy intensity with respect to energy price in Canadian manufacturing industries. The time-series properties of the data are investigated using panel unit root, and the long-run relationships are ascertained based on panel co-integration tests. Estimation of long-run elasticities is then conducted using panel error correction and panel fully modified ordinary least square (PFMOLS) methods. The estimated long-run elasticity is in the tune of ?0.4 for the overall manufacturing sector, but there is significant variation across the industries.     

Return on investment from industrial energy efficiency: evidence from developing countries

Energy efficiency is a foundation of any good energy policy. The economic, security, and environmental benefits of energy efficiency have been recognized for decades. We explore energy efficiency investments derived from survey work in developing countries in 119 projects across nine manufacturing subsectors. The methodology utilizes financial return calculations to highlight gaps and opportunities for meeting the potential of energy efficiency projects in the manufacturing sector. We find a generally very high level of internal rates of return at a project level—with payback periods ranging from 0.9 to 2.9 years; but note that these metrics do not always appropriately influence corporate decision-making for a number of well-understood reasons.     

Looking for free riding: energy efficiency incentives and Italian homeowners

We examine the effect of energy efficiency incentives on household energy efficiency home improvements. Starting in February 2007, Italian homeowners have been able to avail themselves of tax credits on the purchase and installation costs of certain types of energy efficiency renovations. We examine two such renovations—door/window replacements and heating system replacements—using multi-year cross-section data from the Italian Consumer Expenditure Survey and focusing on a narrow period around the introduction of the tax credits. Our regressions control for dwelling and household characteristics and economy-wide factors likely to influence the replacement rates. The effects of the policy are different for the two types of renovations. With window replacements, the policy is generally associated with a 30 % or stronger increase in the renovation rates and number of renovations. In the simplest econometric models, the effect is not statistically significant, but the results get stronger when we allow for heterogeneous effects across the country. With heating system replacements, simpler models suggest that the tax credits policy had no effect whatsoever or that free riding was rampant, i.e., people are now accepting subsidies for replacements that they would have done anyway. Further examination suggests a strong degree of heterogeneity in the effects across warmer and colder parts of the country, and effects in the colder areas that are even more pronounced than those for window replacements. These results should, however, be interpreted with caution due to the low rates of renovations, which imply that the effects are estimated relatively imprecisely.     

Tradable energy efficiency certificates: the Italian experience

The Italian white certificates scheme took effect in January 2005. The command and control component of the scheme, i.e., the energy efficiency obligation, was introduced with the implementation of the first European directives on the liberalization of the electricity and natural gas market (Ministero dell’Industria, del commercio e dell’artigianato. Legislative Decree of 16th March 1999, n.79, 1999; Ministero dell’Industria, del commercio e dell’artigianato. Legislative Decree of 23rd May 2000, n. 164, 2000), in the form of a public service obligation (PSO) raised on distribution companies. The market-based component, the trading of energy efficiency certificates (EECs), was introduced by the government in mid-2001, together with the definition of the level of the obligation and of the other elements of the policy package. In the following three years the regulatory authority for electricity and gas (AEEG) designed the implementing technical and economic regulation governing the system through an extensive public consultation. During the same period, a revision of some of the basic elements of the scheme was also carried out, in order to take into account some institutional changes (i.e., new shared responsibilities between the federal government and regional administrations in the energy policy field), as well as some improvements suggested by the regulator. In December 2007, some components of the mechanism were updated on the basis of the results achieved and of the critical issues that emerged during its implementation (Ministero delle Attività Produttive (MSE). Ministerial Decree of revision and update of the Ministerial Decrees of 20the July 2004, 2007).

Jevons’ Paradox revisited: The evidence for backfire from improved energy efficiency

Beginning with William Stanley Jevons in 1865, a number of authors have claimed that economically justified energy-efficiency improvements will increase rather than reduce energy consumption. ‘Jevons Paradox’ is extremely difficult to test empirically, but could have profound implications for energy and climate policy. This paper summarises and critiques the arguments and evidence that have been cited in support of Jevons’ Paradox, focusing in particular on the work of Len Brookes and Harry Saunders. It identifies some empirical and theoretical weaknesses in these arguments, highlights the questions they raise for economic orthodoxy and points to some interesting parallels between these arguments and those used by the ‘biophysical’ school of ecological economics. While the evidence in favour of ‘Jevons Paradox’ is far from conclusive, it does suggest that economy-wide rebound effects are larger than is conventionally assumed and that energy plays a more important role in driving productivity improvements and economic growth than is conventionally assumed.     

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

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

Domestic use of dirty energy and its effects on human health: empirical evidence from Bhutan

Use of dirty fuels such as fuelwood, charcoal, cow dung and kerosene is common in developing countries, which adversely affects the health of people living in the dwellings, especially children and women. Using the data from a comprehensive and nationally representative Bhutan Living Standard Survey 2012, the present study examines the effects of dirty fuels on human health and household health expenditure. The result from propensity score-matching approach indicate that households using dirty fuels have a higher incidence of respiratory disease by 2.5–3% compared to households using cleaner fuels. The chances of household contracting tuberculosis are higher for households using dirty fuel in the range of 5–6%. It is also observed that the incidence of eye diseases and health expenditures among households using dirty fuels is higher. Hence the policy should focus on providing access to clean sources of energy to wider population.     

Effects of energy price rise on investment: Firm level evidence from Indian manufacturing sector

This paper analyses the effects of the rising prices of energy products on the investment of a large panel of manufacturing firms in India during 1993–2013. The prime motivation behind this study is the absence of an empirical study into this research issue exclusively on Indian economy. The empirical results obtained by estimating an Error Correction Model (ECM) using Generalized Method of Moments (GMM) show that energy price rise has negative effect on the investment of firms in the manufacturing sector. The negative effect is transmitted to the firm's investment through both demand-side and supply-side factors. The transmission also depends upon factors such as the energy intensity of production. The results also show that the sales–growth–investment relationship becomes weak in the face of the rising prices of the energy which could be due to the cautious approach to investment adopted by the firms. Therefore, it calls for the attention of the policy makers to evolve a comprehensive energy-policy to ensure continuous supply of energy at affordable prices to the manufacturers.     

Linking energy efficiency and innovation practices: Empirical evidence from the foundry sector

The Europe 2020 strategy currently promotes energy efficiency and innovation through disconnected targets focusing on either energy or R&D. Similar policies indicate that in practice, these two concepts are usually perceived as mutually exclusive. Furthermore, evidence in the literature regarding the relationship between R&D and energy efficiency is still highly limited. This exploratory study aims to address this gap by investigating the link between innovation practices and energy efficiency through a multiple case study of 30 foundries in Northern Italy. We analysed the firms' innovativeness, measured by internal R&D and Open Innovation practices (inbound and outbound), and energy efficiency, measured by specific energy consumption, level of adoption of energy-efficient technologies and barriers to energy efficiency. The results seem to show that those foundries complementing internal R&D with inbound practices have a higher level of energy efficiency, a higher level of adoption of available technologies, and a lower perception of barriers to efficiency improvements. This finding suggests that diversifying innovation practices could lead to better performance with respect to all three indicators of energy efficiency analysed. This study contributes to understanding how more innovative firms can be more energy efficient, providing interesting highlights for managers and policymakers.     

Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis

Improvement in energy efficiency is one of the main options to reduce energy demand and greenhouse gas emissions. However, large-scale deployment of energy-efficient technologies is constrained by several factors. Employing a survey of 509 industrial and commercial firms throughout Ukraine and a generalized ordered logit model, we quantified the economic, behavioral, and institutional barriers that may impede the deployment of energy-efficient technologies. Our analysis shows that behavioral barriers resulted from lack of information, knowledge, and awareness are major impediments to the adoption of energy-efficient technologies in Ukraine, and that financial barriers may further impede investments in these technologies especially for small firms. This suggests that carefully targeted information provisions and energy audits will enhance Ukrainian firms' investments in energy-efficient technologies to save energy consumption, improve productivity, and reduce carbon emissions from the productive sectors.     

China's energy saving potential from the perspective of energy efficiency advantages of foreign-invested enterprises

The paper investigates the energy saving potential associated with firm ownership-related differences in energy efficiency such as those between domestically and foreign-owned firms. Because of a gap in official statistics this topic has barely been touched upon in the scholarly literature. This paper employs a new energy input–output table that distinguishes firm ownership (Chinese owned enterprises, COEs; and foreign-invested enterprises, FIEs) and trade mode (export processing and normal goods production) to analyze the energy efficiency advantage of FIEs in China in 2007. The results show that the total energy intensities of COEs in the industrial sector are generally 5%–35% higher than that of FIEs across industry groups. At an aggregate level, China could save up to 20.3% of its energy use, if industrial COEs could duplicate the energy use efficiency and production technology of FIEs. This gain would require major technology upgrades among COEs.     

工业企业系统节能诊断与能效分析

阐述系统节能诊断与能效分析的基本原理。通过对某针状焦生产企业实施节能诊断与能效分析,找出存在的耗能原因,并提出相应节能对策,估算可产生1000万元/a的节能效益。最终提出系统节能诊断与能效分析,可为企业提供全面、科学、准确的能源诊断,从而最大化挖掘企业自身的节能潜力。     

Regulating district heating in Romania: Legislative challenges and energy efficiency barriers

Many states in Eastern and Central Europe (ECE) possess extensive district heating (DH) networks that were constructed during the days of communist rule in order to provide a universally accessible energy service that supported Soviet development policies. But the post-communist transition was marked by the exacerbation of the sector’s numerous technical, economic, regulatory and environmental problems, accompanied by its abandonment in favour of alternative methods of domestic heating. Recent efforts to increase the use of DH in ECE as a result of environmental and energy security concerns have taken place in an absence of critical, context-sensitive research.