MEASURING THE EFFICIENCY OF ENERGY-INTENSIVE INDUSTRIES ACROSS 23 EU COUNTRIES

Georgia Makridou,Kostas Andriosopoulos,Michael Doumpos,Constantin Zopounidis 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.7

Energy demand is growing significantly in most countries and is expected to continue to expand—perhaps by 45% between now and 2030, and by more than 300% by the end of the century (Brown & Sovacool, 2012). Industry is generally the largest consumer of energy, currently consuming about 37% of the world’s total delivered energy, and the highest in energy-related CO2 emissions among the major sectors of energy use in an economy. Sadly enough, large amounts of energy consumed by industry are used inefficiently because of lack of awareness about proper energy management and weak energy policies and measures, among others. As a result, the industrial development across the world results in more energy use and leads to more concentration of greenhouse gases emissions. Hence, finding ways to increase energy efficiency in the industrial sector is highly important because the global climate and the region’s energy security depend on it. In this paper the efficiency trends of seven energy-intensive industries namely manufacturing, chemicals, electricity-gas and water supply, construction, mining and quarrying, machinery, and transport in 23 EU countries over the period 2000–2009 is analysed. The performance of the sectors is evaluated in terms of an input/output production framework described by capital stock, employment, total energy consumption, value added, and GHG emissions. On the methodological side, we use the Data Envelopment Analysis (DEA) to measure the relative efficiency of each industrial sector. DEA is a popular nonparametric efficiency analysis technique with many applications energy efficiency assessment (Sarica & Ilhan, 2007; Mukherjee, 2008; Azadeh, Amalnic, Ghaderi, & Asadzadeh, 2007). Given the panel nature of the considered data set, the Malmquist Productivity Index (MPI) is used to assess the trends in energy efficiency over time and to distinguish between the effect of efficiency change and technical change. At the second stage of our analysis, we focus on the analysis of the relationship between the energy efficiency estimates and a set of explanatory factors related to the structural characteristics of considered sectors and the countries. For most sectors MPI has been higher than 1 in most years, thus indicating an improving trend. This trend appears to be stronger in chemicals, electricity, machinery, and mining. In fact, electricity and mining have improved steadily since 2003-04. On the other hand, construction and transport exhibit fluctuations, but in most cases their MPI has been lower than 1. The observed efficiency changes reflected in the MPI could be the result of changes in technical efficiency (efficiency change) and/or in the underlying production technology (technology change). It is evident that most sectors have been driven by technology change. Overall it is apparent that improvements due to efficiency change have been modest at best (e.g., no more than 5-10%), whereas improvements due to changes in the best practices (technology factor) have been significant in most of the sectors. This study’s results not only provide a general evaluation of the investigated industries, but also facilitate various interesting efficiency comparisons, with respect to factors that have the highest explanatory power. Taking into account the results of this study, policy makers could identify the main steps that should be followed to improve each industry’s energy efficiency. Furthermore, the significance of each step can be measured, leading to more informed decisions in terms of priorities given.

재고최소화와 에너지효율성 간의 관계에 대한 실증분석: 국내 철강기업을 중심으로

김길환 공주대학교 KNU 기업경영연구소 2022 기업경영리뷰 Vol.13 No.3

Energy efficiency is critical issue for steel companies because they consume a lot of energy in the produc- tion process. Also, inventory management is one of the paramount management activities for steel companies because they mainly produce intermediate goods. This study aims to investigate the relationship between inven- tory management, which is the important management activity to steel companies, and energy efficiency, which is critical due to the nature of their production process. To achieve this goal, we define energy efficiency with distance function and estimate it using stochastic frontier analysis. Morovere, given that lean inventory manage- ment has been widely applied among most companies, we adopt the concept of inventory leanness to evaluate the level of inventory management within the steel company and use emprical leanness indicator to estimate inventory leanness. Also, we consider energy efficiency as a dependent variable and empirical leanness indicator as a independent variable to exmaine the relationship between energy efficiency and inventory leanness, and we analyze the impacts of company size and industry dynamism on energy efficiency. The main results of this study are as follows. First, the average energy efficiency is around 0.901, which is lower than the optima energy efficiency. Second, both company size and industry dynamism have the negative impacts on energy efficiency. Based on these results, we provide the managerial implication as follows. First, in order to improve energy ef- ficiency, it is necessary for the managers of steel company to actively introduce the lean approach for the inven- tory management. Second, it is required for the mangers of large steel company to examine whether energy is efficiently used in production process. Meanwhile, this study contributes to the related literature by analyzing the relationship between inventory leanness and energy efficiency―not addressed in previous studies―and then revealing the effectiveness of lean inventory management in terms of energy efficiency 에너지를 많이 소비하는 생산시스템의 특성상 철강기업의 에너지효율은 중요한 이슈이다. 또한 철강기업은 중 간재를 주로 생산하므로 재고관리가 핵심 관리 활동 중의 하나이다. 본 연구는 철강기업의 ‘핵심 관리 활동인 재 고관리’와 ‘생산시스템의 특성상 매우 중요한 에너지효율’의 관계를 검토해 보고자 하였다. 이를 위해 거리함수 (Distance Function)에 근거하여 에너지효율성(Energy Efficiency)을 정의한 후 확률변경분석(Stochastic Frontier Analysis)을 통해 에너지효율성을 추정하였다. 그리고 린방식(Lean Practice)의 재고관리 접근이 기업들 사이에 광 범위하게 적용되어 왔다는 점을 감안하여 철강기업의 재고관리 수준을 평가하기 위한 개념으로 재고최소화(In- ventory Leanness)를 채택하였고, 실증최소화지표(Empirical Leanness Indicator)로써 이를 추정하였다. 또한 에너 지효율성과 재고최소화의 관계를 검토하기 위해 에너지효율성을 종속변수로, 실증최소화지표를 독립변수로 하 여 분석을 진행하였다. 추가로 에너지효율성에 미치는 기업 규모와 산업역동성(Industry Dynamism)의 효과도 검 토하였다. 주요 분석 결과는 다음과 같다. 첫째, 분석대상 철강기업의 평균 에너지효율성은 0.901로 최적의 에너 지효율성 수준보다 낮은 수준에서 실제 에너지효율성이 결정되고 있다. 둘째, 재고최소화는 에너지효율성에 양의 영향을 주고 있다. 셋째, 기업 규모 및 산업역동성은 에너지효율성에 음의 영향을 주고 있다. 이와 같은 주요 결과 를 토대로 다음과 같은 시사점을 제시하였다. 첫째, 에너지효율성 개선을 위해 철강기업의 관련 실무자는 린방식 의 재고관리를 적극 도입할 필요가 있다. 둘째, 규모가 큰 철강기업의 관련 실무자는 에너지 사용이 효율적으로 이루어지고 있는지를 검토해 볼 필요가 있다. 한편, 본 연구는 기존 연구에서 고려되지 않았던 재고최소화와 에너 지효율성 간의 관계를 분석하여, 에너지효율 개선 측면에서 작동하는 린방식 재고관리의 효과성을 밝혀냈다는 점 에서 관련 연구에 기여하고 있다.

미국의 에너지공급자효율향상의무화 제도에 관한 연구

김종천(Kim Jong Cheon) 중앙대학교 법학연구원 2014 法學論文集 Vol.38 No.1

The US Energy Efficiency Resource Standard(EERS) is also known as Energy Efficiency Portfolio Standard(EEPS) or Energy Efficiency Commitment(EEC). The mechanism aims to produce, transport and use electricity and natural gases more effectively. EERS requires energy suppliers or distributors to reduce energy through customer energy efficiency programs based on a certain percentage and an increased percentage during a certain period of time or by annual and eventually implies the duty of reducing energy usage on consumers. This policy is similar in concept to Renewable Portfolio Standards (RPS). As energy efficiency facility can also reduce energy demand and greenhouse gases, EERS can be applied to a strategy for mitigating carbon pollution and climate change. In particular, many of the American programs carry out end-use energy efficiency programs to reduce a percentage of electricity and natural gases. As load growth across the country reaches approximately two percent each year, the reduced amount accounts for about fifty percent of load growth. Majority of the US states adopted Texas Public Utility Regulatory Act for energy efficiency. The Act provides provisions on energy efficiency targets, compliance of utility administrators, a way to recover energy efficiency costs, review and evaluation on program choices by the committee, energy efficiency for the state-run energy utilities, energy efficiency for electricity utilities, a project to prove energy efficiency for a solar power system, and writing a plan and a report on energy efficiency. Meanwhile, the Act provides provisions that a energy efficiency system under § 8. 2840 of CALIFORNIA PUBLIC UTILITIES CODE should quote Waste Heat and Carbon Emissions Reduction Act. The Act provides provisions on the definition in regard of the energy efficiency system, confirmation of energy efficiency at combined heat and power plants and of waste heat, electricity fee for combined heat and power plants established by the committee, air quality fee and purchase condition, the establishment of a program on a combined heat and power plant system to reduce greenhouse gases by using waste heat that comes from electricity utilities providing to end-users in relevant areas, cost effectiveness of combined heat and power plants, Pay-As-You-Save Pilot Program, a combined heat and power plant guideline, a duty to report on greenhouse gases reduction from combined heat and power plants. Thus, the Energy Efficiency Resource Standard can play a critical role in reducing greenhouse gases and at the same time driving energy efficiency business from which we can learn. And EERS can contribute to reducing energy significantly and drive an investment in enhancing energy efficiency, which suggests a lot to consider for legislative research on Korea's energy demand.

MEASURING THE EFFICIENCY OF ENERGY-INTENSIVE INDUSTRIES ACROSS 23 EU COUNTRIES

Georgia Makridou,Kostas Andriosopoulos,Michael Doumpos,Constantin Zopounidis 글로벌지식마케팅경영학회 2014 Global Marketing Conference Vol.2014 No.6

Energy demand is growing significantly in most countries and is expected to continue to expand-perhaps by 45% between now and 2030, and by more than 300% by the end of the century (Brown & Sovacool, 2012). Industry is generally the largest consumer of energy, currently consuming about 37% of the world’s total delivered energy, and the highest in energy-related CO2 emissions among the major sectors of energy use in an economy. Sadly enough, large amounts of energy consumed by industry are used inefficiently because of lack of awareness about proper energy management and weak energy policies and measures, among others. As a result, the industrial development across the world results in more energy use and leads to more concentration of greenhouse gases emissions. Hence, finding ways to increase energy efficiency in the industrial sector is highly important because the global climate and the region’s energy security depend on it. In this paper the efficiency trends of seven energy-intensive industries namely manufacturing, chemicals, electricity-gas and water supply, construction, mining and quarrying, machinery, and transport in 23 EU countries over the period 2000-2009 is analysed. The performance of the sectors is evaluated in terms of an input/output production framework described by capital stock, employment, total energy consumption, value added, and GHG emissions. On the methodological side, we use the Data Envelopment Analysis (DEA) to measure the relative efficiency of each industrial sector. DEA is a popular nonparametric efficiency analysis technique with many applications energy efficiency assessment (Sarica & Ilhan, 2007; Mukherjee, 2008; Azadeh, Amalnic, Ghaderi, & Asadzadeh, 2007). Given the panel nature of the considered data set, the Malmquist Productivity Index (MPI) is used to assess the trends in energy efficiency over time and to distinguish between the effect of efficiency change and technical change. At the second stage of our analysis, we focus on the analysis of the relationship between the energy efficiency estimates and a set of explanatory factors related to the structural characteristics of considered sectors and the countries. For most sectors MPI has been higher than 1 in most years, thus indicating an improving trend. This trend appears to be stronger in chemicals, electricity, machinery, and mining. In fact, electricity and mining have improved steadily since 2003-04. On the other hand, construction and transport exhibit fluctuations, but in most cases their MPI has been lower than 1. The observed efficiency changes reflected in the MPI could be the result of changes in technical efficiency (efficiency change) and/or in the underlying production technology (technology change). It is evident that most sectors have been driven by technology change. Overall it is apparent that improvements due to efficiency change have been modest at best (e.g., no more than 5-10%), whereas improvements due to changes in the best practices (technology factor) have been significant in most of the sectors. This study’s results not only provide a general evaluation of the investigated industries, but also facilitate various interesting efficiency comparisons, with respect to factors that have the highest explanatory power. Taking into account the results of this study, policy makers could identify the main steps that should be followed to improve each industry’s energy efficiency. Furthermore, the significance of each step can be measured, leading to more informed decisions in terms of priorities given.

확률적 거리함수를 활용한 지역별 에너지효율성 추정

정다솜 ( Dasom Jeong ),강상목 ( Sangmok Kang ) 한국환경경제학회·한국자원경제학회 2021 자원·환경경제연구 Vol.30 No.4

본 연구의 목적은 전통적 에너지효율의 지표인 에너지원단위(Energy Intensity)를 넘어 확률적 프런티어 접근으로 우리나라의 지역별 에너지효율성을 추정하고 이를 에너지효율 개선을 위한 기초적 자료로 제공하고자 함이다. 이를 위해 1998 - 2018년 기간 동안의 우리나라 16개 시·도의 에너지효율성 및 에너지원단위 효율성을 확률적 거리함수를 활용하여 추정한다. 부가적으로 선행연구에서 혼재하고 있는 자본스톡 추계방법들에 따른 에너지효율성 순위의 강건성을 살펴본다. 분석 결과 첫째, 세 가지 에너지효율의 지표에 따라 지역의 순위에 상당한 변동이 있었으므로 이들을 상호보완적으로 사용해야 할 것이다. 둘째, 에너지효율성은 시간이 지남에 따라 미미하지만 조금씩 개선된 반면, 에너지원단위 효율성은 미미하지만 하락했다. 마지막으로 자본스톡 추계방법에 따른 지역별 에너지효율성은 강건하지 않았다. 경제분석에서 중요한 자본스톡 추정 시 신중을 기해야 할 것이다. The purpose of this study is to provide basic data for improving energy efficiency by estimating the regional energy efficiency in Korea using the stochastic frontier approach beyond the energy intensity that has been traditionally used as an indicator of energy efficiency. In this paper, energy efficiency and energy intensity efficiency were estimated as a stochastic distance function from 1998 to 2018 for 16 cities and provinces in Korea. In addition, the robustness of energy efficiency according to the capital stock estimation methods which had been mixed in previous studies was reviewed. As a result of the analysis, there is a significant change in regional rankings according to the three energy efficiency indicators, so they should be used complementary to each other. Second, while the energy efficiency improved little by little over time, the energy intensity efficiency decreased slightly though. Lastly, energy efficiency by region according to the capital stock estimation method was not robust. Care must be taken in estimating capital stock, which is important in economic analysis.

국내기업 에너지효율 투자 의사결정 단계별 주요 동인의 상대적 중요도 분석 : 퍼지계층분석을 활용하여

박재형,우종률,박지용 한국기후변화학회 2022 한국기후변화학회지 Vol.13 No.4

Energy efficiency is considered a priority because it is not only a management target for companies, but also an effective means for the government of Korea to reduce greenhouse gas emissions and implement carbon neutrality. For this, it is necessary to identify in detail drivers that have a positive impact on energy efficiency-related investments by companies and shift to the development of sophisticated policies that can promote these drivers. Under these circumstances, this study contributes to providing basic data that the government can use as reference data for developing policies to improve corporate energy efficiency by determining drivers that can lead to investments for improving energy efficiency at each stage of corporate decision-making. To this end, we first assumed the company’s decision-making process leading to energy efficiency investments and then selected drivers that have a positive effect on each stage following a literature review. Further, since the government is paying considerable attention to energy efficiency as a means of implementing carbon neutrality, we divided the responding companies on the survey into large emitters of GHGs and small emitters and analyzed the results. Additionally, to improve the reliability of the results, we calculated the relative importance of each driver by applying a fuzzy analytic hierarchy process. We found that an energy price-related driver is more important for large emitters of GHGs. By contrast, we found that small emitters of GHGs placed increased importance on energy audit-related driver, energy efficiency policy-related driver, and technology identification driver. This study provides a framework for the government to take more sophisticated approaches toward developing policies for corporate energy efficiency improvement by identifying drivers that have a positive impact on the implementation of energy efficiency investments at each stage of the corporate decision-making process.

비용-효율적인 에너지기자재의 효율기준 수립 제도화 방안 연구

박민구(Min-Ku Park),박흥석(Hung-Suck Park),오석영(Seok-Young Oh) 한국에너지기후변화학회 2021 에너지기후변화학회지 Vol.16 No.1

The goal of implementing the energy efficiency standards of energy equipment is not only to reduce national energy consumption and greenhouse gases but to achieve a successful market transformation with high-efficiency energy equipment in cost-effective way. This study investigated methodologies about how to get them on the energy efficiency standards in abroad and proposed how to apply those methodologies in Korea. In Korea, energy efficiency of equipment are managed by the Energy Utilization Rationalization Act corresponding to U.S. federal original (EPCA) or European Eco-design. But there is no legal requirement to conduct analysis for technical-economic feasibility or environmental impact on energy efficiency standards. In order to maximize the energy savings and to reduce environmental impacts of energy-using equipment in cost-effective way, the law and related regulations on energy efficiency standards need to be revised to include technical, economic and environmental assessment in the energy efficiency standards procedure for energy using machinery and equipment or materials.

IT기반의 선박에너지절감시스템 성능평가 방법-(2) : 해상시험 수행 결과

유윤자(Yun-Ja Yoo) 한국항해항만학회 2016 한국항해항만학회지 Vol.40 No.4

IMO에서는 선박온실가스 규제를 위해 2013년부터 현존선의 선박에너지효율관리계획인 SEEMP (Ship Energy Efficiency Management Plan)의 시행을 강제화하고 있다. SEEMP에서 권고하는 에너지절감기술 가이드라인은 크게 하드웨어적인 장비의 탑재 및 개조 또는 소프트웨어적인 기술을 통한 연료유 절감효과로 구분된다. 신조선의 경우 하드웨어적인 기술구현이 용이하지만 현존선의 경우 운항상 제약으로 인해 소프트웨어적인 에너지 절감기술 구현이 적용되고 있다. IT기반의 선박에너지절감 시스템 성능평가를 위해 해상시험을 수행 하였고, 시스템 적용 전후의 항차데이터를 이용하여 연료유 절감효과를 비교·분석 하였다. 또한, SEEMP에서 자발적인 사용을 권고하고 있는 선박 경제운항 지표 (EEOI, Ship Energy Efficiency Operation Indicator) 분석을 통한 성능평가 결과를 제시하였다. SEEMP (Ship Energy Efficiency Management Plan) has entered into force since 2013 for the reduction of GHG emission of operating ships. SEEMP guidelines include the hardware modification or installation of energy-saving device on ship. It also includes software based energy-saving technology such as optimum routing, speed optimization, etc. Hardware based technologies are not easy to apply to ongoing vessel due to the operational restriction. Therefore, IT based energy-saving technology was applied and its energy efficiency was evaluated using before and after energy-saving system applied voyage data. SEEMP advises a voluntary participation of EEOI (Ship Energy Efficiency Operation Indicator) use as an indicator of ship energy efficiency operation, and those results were also shown to evaluate the improvement efficiency of energy-saving system.

유가 충격 이질성을 고려한 에너지 다소비 사업장의 에너지 효율성 추정

이우평 ( Woopyeong Yi ),강상목 ( Sangmok Kang ) 한국생산성학회 2018 生産性論集 Vol.32 No.3

To explore more reasonable GHG mitigation policies, more accurate information on the company's energy performance indicators are needed. Generally, energy intensity is frequently used as an indicator for energy performance. Although the indicator has the advantage of being intuitive and simple, it is also true that many other statistical factors are not taken into consideration. At this time, energy efficiency based on Stochastic Frontier Analysis (SFA) technique or Data Envelopment Analysis (DEA) technique can be used as an alternative indicator to energy intensity. The techniques can drive more accurate performance by considering more information than energy intensity. Despite the importance of measuring the energy efficiency of the enterprise unit, study on the energy efficiency measure at enterprise unit or business unit in Korea has rarely been studied so far. The reason for the lack of research on the issue is probably because the data of firm level energy consumption has not been generally publicized. The purpose of this study is to measure the energy efficiency of the energy consumption industry in Korea based on the internal data of the Korea Environmental Industry & Technology Institute. We estimate energy efficiency of facilities in Energy Intensive Industries of Korea with Stochastic Frontier Model. Considering information and degree of freedom of the dataset, sophisticated model is not available. Therefore, this study benchmarks Stochastic Frontier Model proposed by Herrala & Goel (2012) which is one of the very simple model for greenhouse gas efficiency. The benchmarked part from Herrala & Goel (2012) is the functional form and variable selection of the regression equation. It is another matter to decide the estimation method. In this study, time varying panel SFA technique of Battese & Coelli (1992) is benchmarked for estimation. Energy Intensive Industries can be influenced by oil price shock; however, the time span of dataset of the study, 2013-2015, was a period in which the oil price fell sharply. If each firm's sensitivity to exogenous shocks such as oil price shocks, is different, time varying heterogeneity can be included in efficiency measure. Therefore, we control the oil shock heterogeneity using by oil price fluctuation as a proxy variable with firm specific coefficient based on the time varying panel SFA model of Battese & Coelli (1992). As a result, it is found that there are significant energy inefficiencies of firms in iron & steel, nonmetal, and chemical industries. However, there is no significant difference in energy efficiencies in firms in paper industry. The presence of inefficiency means that more energy is used under the same output. Although existence of an energy inefficiency is a negative sign, but it also means that there can be a chance to improve overall energy performance by improving inefficiency. The contribution of this study is in terms of statistical technique rather than finding a specific policy alternative. In particular, the time varying heterogeneity problem presented in this study is newly suggested in the efficiency related study. Policy implications can be found in that it serves as an important part of many analyses, as is the case with energy intensity. The energy efficiency indicator proposed in this study needs to be combined with information from individual companies in order to bring on a substantial policy implication; thus, many follow-up researches are needed.

Energy Efficiency Analysis in Korea with 90-95-2000 Link Energy-Environment IO Table

Kim, Yoon-Kyung 한국암반공학회 2007 Geosystem engineering Vol.10 No.1

Improvement of energy efficiency has been a major public policy concern in Korea. Investment cost for location of avoidance facility such as nuclear power and radioactive waste management facility, environmental pollution etc could significantly reduced from improvement of energy efficiency. Energy efficiency improvement could be one of good solution to cope with volatile energy market. Korea has been high oversea dependency in fossil fuels supply to meet its energy requirement. Its import dependency on fossil fuels in 1995 and 2000 is respectively 96.8% and 97.2%. The fact that Korea depends heavily on imported energy shows it should make more efforts to promote improvement of energy efficiency. Although Korean Government has supported industrial sector in improvement of energy efficiency, some energy analysts and critics point out that Korea has little progressed in energy efficiency improvement. This paper estimated its energy efficiency and analyzed its improvement with energy Input-Output table 90-95-2000 of Korea. The results are appeared differently. The cross section and time series analysis result of the energy efficiency is that energy elasticity for GDP, energy intensity and induced energy consumption between 1995 and 2000 significantly improved. From 1990 to 1995, energy elasticity for GDP is bigger than 1. It means that energy consumption increased rapidly more than GDP growth rate. This is the evidence that energy efficiency was not improved. Energy intensity of each industrial sector between 1995 and 2000 is lower than in cases of1990 and 1995. It shows that energy efficiency was improved. As energy intensity of each industry becomes lower, induced energy consumption of economy goes smaller because of interaction among sectors.