Abstract

This paper develops some policy options for Thailand’s industrial sector. The energy simulation model, the Long-range Energy Alternatives Planning (LEAP) system, has been used to simulate how energy might develop from 2005-2030. Five policy interventions are selected, and how these would change energy development is examined, and compared to a reference case. Further, the industrial policy options are assessed using a multi-criteria decision-making framework. Results of this study can increase the knowledge and understanding to make an explicit consideration of the transition from high carbon intensive energy system to one which is substantially decarbonized. The most significant energy-savings are improvement of energy efficiency and process integration. These policy options also have the large potential to reduce CO2 emissions.

Highlights

  • Climate change and energy issues are demanding new efforts to addressing the challenges

  • The industrial sector accounts for 40% of primary energy demand and approximately the same share for CO2 emissions

  • The manufacturing industry contributes about 95% of CO2 emissions from industrial sector, while construction and mining industries contribute the rest [1]

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Summary

Introduction

Climate change and energy issues are demanding new efforts to addressing the challenges. The industrial sector accounts for 40% of primary energy demand and approximately the same share for CO2 emissions. The growth rate of manufacturing valueadded accelerated from 5% to 15% per year between the first and second half of the 1980s, and continued to grow rapidly by 11% per year in the first half of the 1990s. As a result, manufacturing’s contribution to overall gross domestic product (GDP) increased rapidly from 23% to 31% between 1980 and 1995. This performance came to an abrupt halt in 1996, when manufacturing exports declined. In the period 1996-2000, manufacturing value-added and exports grew by an average of 3% and 2% per year

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