Abstract
Energy use in Indonesia’s steel industry accounts for about 20–35% of total production costs. Consequently, energy end-use efficiency is a crucial measure that is used to reduce energy intensity and decrease production costs. This article aims to investigate the relationships among different barriers to energy efficiency improvement (EEI), using a framework with the following six constructs: government policy, the financial–economic factor, the managerial–organizational factor, the technological factor, workforce, and quality and type of feedstock and fuel used. The data were collected from steel firm practitioners in Indonesia, using a questionnaire to test our framework. The results demonstrate that the applied framework was applicable. We find that EEI is moderately influenced by all constructs but that the managerial–organizational factor has the greatest direct effect on improvements and is the most significant factor.
Highlights
As industrial energy use accounts for about 36–37% or one-third of the world’s final energy demand [1], the industrial sector has a large impact on greenhouse gas (GHG) mitigation and is, an important sector in terms of improved energy efficiency [2]
Our results show that composite reliability and Cronbach’s alpha coefficients of constructs exceed the value of 0.60, which confirms the degree of internal consistency of the measurement variables
Our study examined six categories that are related to barriers to energy efficiency:government policy, the financial–economic factor, the managerial–organizational factor, technology, workforce, and used feedstock–fuel
Summary
As industrial energy use accounts for about 36–37% or one-third of the world’s final energy demand [1], the industrial sector has a large impact on greenhouse gas (GHG) mitigation and is, an important sector in terms of improved energy efficiency [2]. For energy-intensive industries, it is known that energy costs may account for up to and over 30% of total production costs [3], so at the firm level, improving energy efficiency is intended to generate direct economic benefits by decreasing the amount of energy used in production [4,5]. This global industrial sector share consists of 42%, 75%, 44% and 20% of the global electricity generated, coal, natural gas, and oil consumption, respectively [6]. It is estimated that the world manufacturing industry emits 43% of anthropogenic carbon dioxide emissions and accounts for about
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