Energy efficiency,sustainability and economic growth

This paper explores two linked theses related to the role energy in economic development, and potential sources of increased energy efficiency for continued growth with reduced greenhouse gas (GHG) emissions. The first thesis is that, while reduced GHG emissions are essential for long-term global sustainability, the usual policy recommendation of increasing energy costs by introducing a carbon tax may be relatively ineffective under current market structures and have an unnecessarily adverse impact on economic growth. Our second thesis is that there exists a practical near-term strategy for reducing GHG emissions while simultaneously encouraging continued technology-driven economic growth. Moreover, this strategy does not require radical new technologies, but rather improved regulation or—more precisely—better deregulation of the electric power sector.     

Energy security,efficiency and carbon emission of Chinese industry

For the Chinese industry as the mainstay of the national economy and dominant energy user and carbon emitter, an integrative assessment is performed from major energy policy perspectives of energy security, energy efficiency and carbon emission. Extensive systems indicators, including oil dependence ratio, average oil growth rate; indices of energy diversity, of carbonization and of oil growth risk; ratios of energy use to output, to value added and to compensation for laborers; ratios of carbon emission to output, to value added and to compensation for laborers, are devised to assess the Chinese industry 2002–2007 with most recent statistics availability. Combined indicators are identified by sparse principle component analysis to characterize sector performances. The industrial sectors are classified into five clusters and the main features of each cluster are pinpointed using fuzzy clustering algorithm. Concrete results facilitate comparisons of sectors to enable more accurate policy recommendations.     

Energy consumption-economic growth relationship and carbon dioxide emissions in China

This paper applies the panel unit root, heterogeneous panel cointegration and panel-based dynamic OLS to re-investigate the co-movement and relationship between energy consumption and economic growth for 30 provinces in mainland China from 1985 to 2007. The empirical results show that there is a positive long-run cointegrated relationship between real GDP per capita and energy consumption variables. Furthermore, we investigate two cross-regional groups, namely the east China and west China groups, and get more important results and implications. In the long-term, a 1% increase in real GDP per capita increases the consumption of energy by approximately 0.48–0.50% and accordingly increases the carbon dioxide emissions by about 0.41–0.43% in China. The economic growth in east China is energy-dependent to a great extent, and the income elasticity of energy consumption in east China is over 2 times that of the west China. At present, China is subject to tremendous pressures for mitigating climate change issues. It is possible that the GDP per capita elasticity of carbon dioxide emissions would be controlled in a range from 0.2 to 0.3 by the great effort.     

The odd couple: The relationship between state economic performance and carbon emissions economic intensity

Historical time trends indicate that both carbon and energy intensity have declined in the United States over the last several decades, while economic performance, as measured by per capita GSP, has improved. This observation indicates that it may be possible to reduce carbon intensity without a reduction in economic performance. This paper assesses using panel analysis, the empirical relationship between carbon emissions intensity and economic performance, and examines the direction of causality between the two variables. Data for the analysis covered 48 states, excluding Hawaii, Alaska, and Washington DC, from 1980 to 2000. The results indicate significant bi-directional relationship between carbon emissions intensity and state economic performance, both using an aggregate indicator for carbon emissions intensity, decomposed using Laspeyres indexes and disaggregated by sector. This implies that it should be possible to implement statewide and sector-specific policies to reduce energy and carbon intensity and at the same time improve economic performance.     

Defining limits: Energy constrained economic growth

The historical and deductive merits for an explicit energy-based economic growth formulation are presented. Parameters in the formulation are successfully calibrated to empirical data and a range of forecasts is made for global economic growth potential to 2050, based on a plausible case of energy availability. The results demonstrate the vital importance of energy security and lead to the conclusion that the current socio-economic paradigm may not be sustainable.     

A multivariate causality test of carbon dioxide emissions,energy consumption and economic growth in China

This paper uses multivariate co-integration Granger causality tests to investigate the correlations between carbon dioxide emissions, energy consumption and economic growth in China. Some researchers have argued that the adoption of a reduction in carbon dioxide emissions and energy consumption as a long term policy goal will result in a closed-form relationship, to the detriment of the economy. Therefore, a perspective that can make allowances for the fact that the exclusive pursuit of economic growth will increase energy consumption and CO₂ emissions is required; to the extent that such growth will have adverse effects with regard to global climate change.     

Energy efficiency trends and policy in Slovenia

The energy dependency of Slovenia is high (52.1%), but it is a little lower than the average energy dependency in the EU 27 (53.8%). Slovenia imports all its petroleum products and natural gas and partly coal and electricity. The energy intensity of Slovenia is higher by about 50% than the average in the EU 27. The target of the EU Directive on energy end-use efficiency and energy services adopted in 2006 is to achieve a 9% improvement of EE (energy efficiency) within the period 2008-2016. The new target of the EU climate and energy package “20-20-20 plan” is a 20% increase in EE by 2020. Since 1991 the Slovenian government has been supporting energy efficiency activities. The improvement of EE was one of the targets of strategic energy documents ReSROE (Resolution on the Strategy of Use and Supply of Energy in Slovenia from 1996 and ReNEP (Resolution on the National Energy Programme) from 2004 adopted by the Slovenian National Assembly (Parliament) in previous years. The Energy Act adopted in 1999 defines the objective of energy policy as giving priority to EE and utilization of renewable energy sources. The goals of the “National Energy Action Plan 2008-2016 (NEEAP)” adopted by the Slovenian government in 2008 include a set of energy efficiency improvement instruments in the residential, industrial, transport and tertiary sectors. The target of the NEEAP is to save final energy in the 2008-2016 period, amounting to at least 4261 GWh or 9% of baseline consumption. The indicators of energy efficiency trends show considerable improvement in the period from 1998 to 2007. The improvement of EE was reached in all sectors: manufacturing, transport and households. The paper analyses the structure, trends of energy consumption and energy efficiency indicators by sectors of economic activity. A review of energy efficiency policy and measures is described in the paper.     

Energy efficiency in pumps

In this paper, “energy efficiency” studies, done in a big industrial facility’s pumps, are reported. For this purpose; the flow rate, pressure and temperature have been measured for each pump in different operating conditions and at maximum load. In addition, the electrical power drawn by the electric motor has been measured. The efficiencies of the existing pumps and electric motor have been calculated by using the measured data.

Potential energy saving opportunities have been studied by taking into account the results of the calculations for each pump and electric motor. As a conclusion, improvements should be made each system. The required investment costs for these improvements have been determined, and simple payback periods have been calculated.

The main energy saving opportunities result from: replacements of the existing low efficiency pumps, maintenance of the pumps whose efficiencies start to decline at certain range, replacements of high power electric motors with electric motors that have suitable power, usage of high efficiency electric motors and elimination of cavitation problems.     

Energy demand and carbon emissions under different development scenarios for Shanghai,China

In this paper, Shanghai's CO₂ emissions from 1995 to 2006 were estimated following the IPCC guidelines. The energy demand and CO₂ emissions were also projected until 2020, and the CO₂ mitigation potential of the planned government policies and measures that are not yet implemented but will be enacted or adopted by the end of 2020 in Shanghai were estimated. The results show that Shanghai's total CO₂ emissions in 2006 were 184 million tons of CO₂. During 1995–2006, the annual growth rate of CO₂ emissions in Shanghai was 6.22%. Under a business-as-usual (BAU) scenario, total energy demand in Shanghai will rise to 300 million tons of coal equivalent in 2020, which is 3.91 times that of 2005. Total CO₂ emissions in 2010 and 2020 will reach 290 and 630 million tons, respectively, under the BAU scenario. Under a basic-policy (BP) scenario, total energy demand in Shanghai will be 160 million tons of coal equivalent in 2020, which is 2.06 times that of 2005. Total CO₂ emissions in 2010 and 2020 in Shanghai will be 210 and 330 million tons, respectively, 28% and 48% lower than those of the business-as-usual scenario. The results show that the currently planned energy conservation policies for the future, represented by the basic-policy scenario, have a large CO₂ mitigation potential for Shanghai.     

Energy rebound and economic growth: A review of the main issues and research needs

Contrary to conventional wisdom, more efficient use of energy may actually through rebound effects lead to greater instead of less total consumption of energy—or at least to no diminution of energy consumption. If so, energy efficiency strategies may serve goals of raising economic growth and affluence, but as an environmental or energy policy strategy could backfire, leading to more resource use in absolute terms rather than less. This, in turn, could in the long run hamper economic growth, for instance if resource scarcity crowds out technical change. The hypothesis that rebound is greater than unity (‘backfire’) predicts the observed real-world correlation between rising energy consumption and rising efficiency of energy services, however difficult it may be to define a precise holistic metric for the latter. The opposing hypothesis, i.e. that rebound is less than unity and that energy efficiency increases therefore result in less energy consumption than before, requires on the other hand strong forces that do account for the empirically observed economic growth. This paper summarises some of the discussions around the rebound effect, puts it into perspective to economic growth, and provides some insights at the end that can guide future empirical research on the rebound topic.     

Energy efficiency in the transport sector

The distribution of energy use in the transport sector in the United States of America is presented and analysed in terms of the efficient use of energy in various applications. Comparisons are drawn with other modelling efforts.     

Strategies for carbon dioxide emissions reductions: Residential natural gas efficiency,economic, and ancillary health impacts in Maryland

As part of its commitments to the Regional Greenhouse Gas Initiative (RGGI), the State of Maryland, USA, auctions emission permits to electric utilities, creating revenue that can be used to benefit consumers and the environment. This paper explores the CO₂ emissions reductions that may be possible by allocating some of that revenue to foster efficiency improvements in the residential sector’s use of natural gas. Since these improvements will require changes to the capital stock of houses and end use equipment, efficiency improvements may be accompanied by economic and ancillary health impacts, both of which are quantified in this paper.     

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.     

Energy consumption and economic growth revisited in African countries

The aim of this paper is to provide new empirical evidence on the relationship between energy consumption and economic growth for 21 African countries over the period from 1970 to 2006, using recently developed panel cointegration and causality tests. The countries are divided into two groups: net energy importers and net energy exporters. It is found that there exists a long-run equilibrium relationship between energy consumption, real GDP, prices, labor and capital for each group of countries as well as for the whole set of countries. This result is robust to possible cross-country dependence and still holds when allowing for multiple endogenous structural breaks, which can differ among countries. Furthermore, we find that decreasing energy consumption decreases growth and vice versa, and that increasing energy consumption increases growth, and vice versa, and that this applies for both energy exporters and importers. Finally, there is a marked difference in the cointegration relationship when country groups are considered.     

Energy,exergy and economic analysis of industrial boilers

In this paper, the useful concept of energy and exergy utilization is analyzed, and applied to the boiler system. Energy and exergy flows in a boiler have been shown in this paper. The energy and exergy efficiencies have been determined as well. In a boiler, the energy and exergy efficiencies are found to be 72.46% and 24.89%, respectively. A boiler energy and exergy efficiencies are compared with others work as well. It has been found that the combustion chamber is the major contributor for exergy destruction followed by heat exchanger of a boiler system. Furthermore, several energy saving measures such as use of variable speed drive in boiler's fan energy savings and heat recovery from flue gas are applied in reducing a boiler energy use. It has been found that the payback period is about 1 yr for heat recovery from a boiler flue gas. The payback period for using VSD with 19 kW motor found to be economically viable for energy savings in a boiler fan.     

Energy consumption,economic growth and prices: A reassessment using panel VECM for developed and developing countries

This paper reinvestigates the energy consumption–GDP growth nexus in a panel error correction model using data on 20 net energy importers and exporters from 1971 to 2002. Among the energy exporters, there was bidirectional causality between economic growth and energy consumption in the developed countries in both the short and long run, while in the developing countries energy consumption stimulates growth only in the short run. The former result is also found for energy importers and the latter result exists only for the developed countries within this category. In addition, compared to the developing countries, the developed countries’ elasticity response in terms of economic growth from an increase in energy consumption is larger although its income elasticity is lower and less than unitary. Lastly, the implications for energy policy calling for a more holistic approach are discussed.     

Energy investment and economic growth : A simplified approach

A model is developed to investigate the effect of energy investment on economic growth under a set of simplifying assumptions. The economy is treated as a two sector aggregate; the energy sector and the rest of the economy, whereas the model describing the energy-economy interaction is linear to the differential changes of the variables, adaptable to structural evolution and requires a modest amount of data for initialization. It can be used in a single stage or an iterative mode to produce outcomes for the short and medium run. The analysis reveals that energy productive investment has had an impact on the rate of formation of the non-energy capital stock and subsequently on economic growth. These effects appear amplified under a regime of increasing energy price.     

Energy consumption and economic growth in Turkey during the past two decades

The Turkish economy has undergone a transformation from agricultural to industrial, enhanced by rapid urbanization, especially after 1982. Turkey's gross national production has grown at an average annual rate of 5% since 1983, ranking it at the top of the OECD countries, although the growth pattern has been uneven. Economic growth in recent years has been associated with the privatization of public enterprises. Turkey's energy demand has risen rapidly as a result of social and economic development. The country's energy consumption has grown considerably since the beginning of the 1980s. The Turkish government encourages foreign and Turkish private sector investors to implement the energy projects and is currently working on a new investment model for the construction of new generation plants to create the additional capacity needed. The Turkish energy sector, with its current size of 30 billion US dollars and projected size of 55 billion US dollars by 2015, as well as the fundamental restructuring process it has been going through since 2001, attracts both local and foreign investors. The sector needs an investment amount of approximately 130 billion US dollars by 2020. The aim of the present paper is to investigate the increasing of Turkish energy demand with the growth of the economy and utilization of domestic energy sources and the case of investments and imports in Turkey during the past two decades.     

Energy structure,marginal efficiency and substitution rate: An empirical study of China

Energy efficiency is an important factor in developing energy policies as it represents the extent to which resources support economic output. In recent literature, relevant studies have mainly focused on aggregate energy efficiency, but rarely touched on the marginal efficiency of diverse energy resources and their comparative substitution rate. During 1978–2003, China's energy efficiency continually increased; and consequently became a hot topic in contemporary literature. However, there is no empirical study on the relationship between energy structure and energy efficiency. In order to close the gap, this paper reports the empirical study of the impact of China's energy structure on its energy efficiency from 1978 to 2003. The work covered primary estimation of the marginal efficiency of coal and petroleum in China, as well as the comparative substitution rate. Results indicate that the substitution rate between petroleum and coal is a factor of 5.38.     

Energy efficiency in India: Assessing the policy regimes and their impacts

In the recent years, India has emerged as one of the fast growing economies of the world necessitating equally rapid increase in modern energy consumption. With an imminent global climate change threat, India will have difficulties in continuing with this rising energy use levels towards achieving high economic growth. It will have to follow an energy-efficient pathway in attaining this goal. In this context, an attempt is made to present India's achievements on the energy efficiency front by tracing the evolution of policies and their impacts. The results indicate that India has made substantial progress in improving energy efficiency which is evident from the reductions achieved in energy intensities of GDP to the tune of 88% during 1980–2007. Similar reductions have been observed both with respect to overall Indian economy and the major sectors of the economy. In terms of energy intensity of GDP, India occupies a relatively high position of nine among the top 30 energy consuming countries of the world.