Abstract
This paper presents an analysis of energy saving and changes in energy intensities in Thai manufacturing sector by Logarithmic Mean Divisia Index decomposition technique. This method includes three effects consists of the energy intensity effect, the structural effect and the effect of the economic growth on the energy consumption in Thailand by using the 25-year annual data from 1990 to 2014, carried out in four phases; (i) before National Energy Conservation law, (ii) during the effect of the law, (iii) Transition period of the law from first to second version, and (iv) during the effect of the law (No.2). We found that the most effective intensity effect is in the third phase due to the effect of the implementation of new energy efficient equipment from the second phase by enforcement of the law, especially in non-metallic sector, while the first phase illustrates the lowest intensity effect due to the energy conservation law had not been occurred. However, due to the highest economic growth of the country and change from agricultural to industrial development direction, the first phase presents the most effective structural effect, then this effect continuously decreased by time. We also conclude that the energy conservation law have direct effect to energy efficiency of the country however, strictly individual regulation which have target to enforce to energy intensive industries is still required for sustainable energy efficiency improvement.
Highlights
The final energy consumption in Thailand increases continuously during the past 25 year
By considering the energy and economic significant impact, the twentyfive-year period of this study was divided into four period; i.e. (i) The first sub-period is from 1990 to 1997 which presents the high economic progress of the country before The National Energy Conservation law A.D.1992 and the time before the 1997 economic crises, (ii) The second, from 1997 to 2007, during the effect of the law and the period of economic slowdown after the crises. (iii) The third transition period of the law from 2007 to 2010 from first to second version and the global economic slowdown, and (iv) The last from 2010 to 2014, during the effect of the law (No.2) and the political crisis in the Thai economy
Table 1. shows that during 1990 to 2014, all economic sectors that consumed the largest amount of energy were transport and manufacturing sectors [11] share average at 37.3% and 34.9% respectively.The growth of energy consumption of the manufacturing sector continued to increased 3.8% whereas the growth of energy consumption of the transport sector declined to 3.9% in last period
Summary
The final energy consumption in Thailand increases continuously during the past 25 year. The economic growth rate in the period 1990-2014 averaged at 4.36 percent. In period 1997 - 2007 was 3.71 percent. In period 2007 - 2010 was 2.33 percent and the last period 2010 - 2014 economic growth increased average at 2.95 percent [1]. The growth of manufacturing sector has grown rapidly and continuously, so in energy planning essential to learn more effect and factors that affect to energy use in this sector
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