Adoption Of Energy-efficient Technologies Research Articles

Promoting energy efficiency at household level: a literature review

The household sector is one of the most energy-intensive sectors in Europe, and thus a focal point for reducing greenhouse gas emissions associated with energy consumption. Energy efficiency is considered a key measure to reduce household energy consumption, but several factors could lead to an underinvestment in energy efficiency. This is the so-called energy efficiency gap or paradox. The factors in question are grouped under market failures (including informational failures), behavioural failures and other factors. Various policies can be used to address these failures and promote the adoption of energy-efficient technologies, including energy standards and codes, economic incentives and information instruments. This paper reviews the empirical evidence to date on energy efficiency policies and discusses their effectiveness. On the one hand, command and control instruments seem to be effective policies, but they have to overcome several barriers. In the case of price instruments, subsidies and taxes do not seem to be effective while rebates present mixed results as they sometimes are effective and in other cases, they could present significant shortcomings. Finally, the effectiveness of informational policies is not always ensured as they depend on the country, sector and product category. Information feedback tools also seem to be effective as they work as a constant reminder of energy-efficient behaviour. Some limitations of energy efficiency policies are also identified, such as the difficulties of implementing codes and standards given that a minimum level need to be achieved, differences in the effectiveness of rebate programmes and non-conclusive results in regard to the effectiveness of monetary energy efficiency labels.

Establishing Energy Efficiency—Drivers for Energy Efficiency in German Manufacturing Small- and Medium-Sized Enterprises

Despite strong political efforts in Europe, industrial small- and medium-sized enterprises (SMEs) seem to neglect adopting practices for energy efficiency. By taking a cultural perspective, this study investigated what drives the establishment of energy efficiency and corresponding practices in SMEs. Based on 10 ethnographic case studies and a quantitative survey among 500 manufacturing SMEs, the results indicate the importance of everyday employee behavior in achieving energy savings. The studied enterprises value behavior-related measures as similarly important as technical measures. Raising awareness for energy issues within the organization, therefore, constitutes an essential leadership task that is oftentimes perceived as challenging and frustrating. It was concluded that the embedding of energy efficiency in corporate strategy, the use of a broad spectrum of different practices, and the empowerment and involvement of employees serve as major drivers in establishing energy efficiency within SMEs. Moreover, the findings reveal institutional influences on shaping the meanings of energy efficiency for the SMEs by raising attention for energy efficiency in the enterprises and making energy efficiency decisions more likely. The main contribution of the paper is to offer an alternative perspective on energy efficiency in SMEs beyond the mere adoption of energy-efficient technology.

A hybrid energy system model to evaluate the impact of climate policy on the manufacturing sector: Adoption of energy-efficient technologies and rebound effects

Improving efficiency is an important option for reducing manufacturing sector emissions. More efficient technologies reduce energy use and emissions. However, efficiency improvements can induce unexpected effects known as rebound effects. Although previous studies have analyzed these effects, these studies fail to precisely evaluate the rebound effects due to improvements in technology efficiency. Bottom-up models are appropriate for analyzing efficiency improvements at the technology level, but they face limitations in exploring output changes because they usually assume that demand is given. In contrast, top-down models are appropriate for observing output changes in an efficiency-improving sector and in the rest of the economy, but they face limitations in explicitly describing technological changes. This study therefore constructs a hybrid model to overcome the limitations of both types of models and evaluates the impacts of climate policy in Korea’s manufacturing sector when rebound effects are considered. The expected emissions reduction due to new technology adoption in the manufacturing sector is 23.8 million tons CO2eq without rebound effects, but when rebound effects are included, the actual emission reduction (12.7 million tons CO2eq) is about 50% of the expected amount.

Determinants of household use of energy-efficient and renewable energy technologies in rural Ethiopia

The poor households living in low-income countries depend on traditional sources for basic energy service; which has a broader socio-economic and environmental adverse effect. To mitigate the problem policy measures were used to increase access to energy-efficient and renewable energy technology. However, there are few studies on demand-side particularly on the drivers of household joint technology adoption behavior. Against this backdrop, this paper examined the determinants of household behavior concerning the adoption decision of energy-efficient and renewable energy technology using cross-sectional data collected from 195 households in central Ethiopia. For identification, the generalized ordered probit model which is a more flexible discrete choice model was applied. The findings reveal that the richer the households, the more likely that they adopt both improved cookstoves and renewable energy technology because of the greater financial capacity to afford to pay the upfront cost of the technologies. Household size and assets such as landholding size and the number of cattle owned positively associated with the use of both technologies. Likewise, a high level of education attained by the head of the household likely reduces the likelihood of adoption of neither technology but increases the likelihood of adoption of renewable energy. Participation in off-farm income-earning activities likely increases the propensity to invest in renewable energy. Similarly, household membership in local cooperatives found to increase the propensity to invest in renewable energy technology. While access to credit found to increase the adoption of energy-efficient technology. The finding of this study implies that poverty reduction and education policies increase the propensity to invest in energy-efficient and renewable energy technology. Likewise, better access to credit, off-farm employment opportunities, and cooperatives are also important.

Exploring the role of positive direct experience in the adoption of energy efficient technologies: evidence from a Swiss field study on the promotion of low-flow showerheads

Despite the considerable potential of low-flow showerheads to reduce household energy demand, their widespread implementation is still far from being realised. In this study, we compare the joint effect of a contextually embedded intervention in a public swimming pool to promote low-flow showerheads coupled with a mass campaign by a Swiss city’s utility to the stand-alone effect of the mass campaign. We also explore the factors that influence the outcome of the contextually embedded intervention. The quasi-experimental design of the study was possible due to the co-occurring installation of low-flow showerheads in a local public swimming pool and a campaign of a local utility, which offered low-flow showerheads for domestic use at a substantially reduced price. Our findings showed that the combined intervention was substantially more effective than the mass campaign alone. However, this result has to be interpreted with caution owing to the imperfect comparability of the two campaigns. Based on a survey of 402 swimming pool visitors, the study findings demonstrate the crucial role of a positive direct experience in the promotion of low-flow showerheads. This had a significant positive impact on attitudes towards low-flow showerheads, which in turn was found to be the most important determinant of purchase intention. The results suggest that more active communication of energy efficiency measures in public facilities might contribute to reductions in household energy use. Such campaigns can be used to share experiences of energy efficiency technologies and, therefore, promote the use of similar systems at home.

Leveraging inter-firm influence in the diffusion of energy efficiency technologies: An agent-based model

Energy efficiency technologies (EETs) are crucial for saving energy and reducing carbon dioxide emissions. However, the diffusion of EETs in small and medium-sized enterprises is rather slow. Literature shows the interactions between innovation adopters and potential adopters have significant impacts on innovation diffusion. Enterprises lack the motivation to share information, and EETs usually lack observability, which suppress the inter-firm influence. Therefore, an information platform, together with proper policies encouraging or forcing enterprises to disclose EET-related information, should help harness inter-firm influence to accelerate EETs’ diffusion. To explore whether and how such an information platform affects EETs’ diffusion in small and medium-sized enterprises, this study builds an agent-based model to mimic EET diffusion processes. Based on a series of controlled numerical experiments, some counter-intuitive phenomena are discovered and explained. The results show that the information platform is a double-edged sword that notably accelerates EETs’ diffusion by approximately 47% but may also boost negative information to diffuse even faster and delay massive adoption of EETs. Increasing network density and the intensity of inter-firm influence are effective to speed EET diffusion, but their impacts diminish drastically after reaching some critical values (0.05 and 0.15 respectively) and eventually harm the stability of the system. Hence, the findings implicate that EET suppliers should carefully launch their promising but immature products; policies that can reduce the perceived risk by enterprises and the effort to maintain an informative rather than judgmental information platform can prominently mitigate the negative side effects brought by high fluidity of information.

Systems dynamic modeling to analyze the systemic viability of the combined use of regenerative converters and energy storage in a UPS manufacturer

Abstract The industrial sector is the largest consumer of energy in the world. In this sector, non-energy intensive companies have untapped energy efficiency potential, such as Uninterruptible Power Supply (UPS) manufacturers. Among the companies classified as non-energy-intensive, the International Energy Agency estimates that the untapped potential for energy efficiency is equivalent to the energy consumption of Japan and South Korea per year, together. In the literature, this unexplored potential is termed as a gap in energy management. The approaches found in the literature present a scenario where most companies exclusively use financial indicators to evaluate investment in energy efficiency. However, even if the results of these indicators are financially attractive, the level of adoption of energy efficiency technologies remains low. Studies on this unexplored potential present technological vies and do not contemplate conjuncture risks and uncertainties that may influence in the adoption of a technological solution. This study aims to analyze through practical application the systemic viability of the combined use of regenerative converters and energy storage in a UPS manufacturer, as well as the use of renewable energy sources for self-generation. The variables were identified through an SLR and combined into a closed loop diagram. A conceptual model was structured by representing the dynamic relationships between variables and the behavior of these variables in decisions related to energy efficiency. Systems Dynamic Modeling (SDM) was used to simulate the behavior of systems in different scenarios considering the use of such technologies and possible variations in energy supply and demand. The estimated financial results of each scenario are presented taking into account the assumptions of a computational model. The results of the model suggest that the use of Regenerative Converter Pulse Width Modulation (RC-PWM) is positive in any context, presenting ROI higher than 4 in the Red Rate Flag scenarios. The option for Distributed Microgeneration (DMG) exerts a negative influence on financial attractiveness, especially in the option of trading energy in a free environment. Government incentives and Peak Shaving (PS) have had a low influence on financial attractiveness for over 10 years. The developed model can be used to visualize alternatives and make decisions in similar situations.

Promoting adoption while avoiding rebound: integrating disciplinary perspectives on market diffusion and carbon impacts of electric cars and building renovations in Austria

BackgroundMany countries state ambitious targets for reducing carbon emissions. Their policy strategies emphasize energy efficiency by means of technological innovations. However, these strategies are at risk of severe rebound effects, as savings from more efficient products and facilities may be (over-)compensated by rearrangements in consumer behavior. While rebound effects are widely acknowledged, it is less clear how they arise from the complex interactions between market actors, consumer preferences, and policy initiatives.ResultsWe propose a simplified representation of these complex dynamics, in order to point out levers for counteracting rebound effects. A pathway mapping integrates results from fuzzy cognitive mapping of expert knowledge, from a household survey on adoption and use and from macroeconomic modelling of energy efficiency policies. Core drivers identified across all methods are joined to a cause-and-effect diagram. The respective strengths of influence are standardized to effect coefficients. By tracing policy impulses through the web of interlinked drivers, the pathway mapping illustrates direct, mediated, and unintended impacts on market diffusion, rebound, and carbon emission reductions of energy-efficient technologies. Pathway mapping is demonstrated as an approach for integrating diverse disciplinary methods into a joint narrative illustrating overarching dynamics.ConclusionsApplying this methodology to building renovations and electric cars in Austria, the need to balance technology adoption and use becomes apparent. Convergent drivers stimulate the market uptake of the energy-efficient technology and simultaneously constrain rebound effects. For instance, educating customers on product features and activating their pro-environmental values, encourages technology adoption as well as ecological use. Contrastingly, divergent drivers have opposing effects on adoption and use. For example, fuel taxes counteract rebound, but also hinder adoption by increasing lifetime costs. Higher income enables adopters to carry upfront investment costs, but also increases spending in other, carbon-intensive consumption domains. The pathway maps show that market-oriented instruments promote the adoption of energy-efficient technologies but also the rebound effect in their subsequent use. Policy interventions should be carefully designed to leverage convergent and to circumnavigate divergent drivers in order to address multiple impact paths. Climate strategies should not underestimate the role of socio-psychological characteristics and key actors.

Revealed versus Stated Preferences: What Have We Learned About Valuation and Behavior?

In this article I review and discuss the use of stated and revealed preference methods in two contexts: the estimation of the value per statistical life (VSL) and the “energy efficiency gap,” namely the slow pace of adoption of energy efficient technologies, even when they make economic sense. I examine whether revealed preference and stated preference studies complement one another in answering basic valuation and policy questions. I conclude that stated preference methods can fill some of the gaps typical of revealed preference approaches. For example, in the VSL context, they can address risk latency, age, and health status questions, and reach populations that are typically not represented in labor markets. Even more important, in stated preference studies, risk attributes can be varied independently from one another across respondents, allowing the analyst to estimate the effect of each of them on the VSL. Stated preference methods also have the potential to explore aspects of energy efficiency decisions (including uncertainty in the energy savings or disruption in the home during renovations) that are not easily observed in revealed preference studies. Estimating discount rates (a key issue in energy efficiency decisions) poses challenges in both revealed and stated preference studies.

Energy-Related Financial Literacy and Bounded Rationality in Appliance Replacement Attitudes: Evidence From Nepal

Bounded rationality is an example of an important behavioral failure responsible for the energy-efficiency gap, whereby agents under-invest in energy-efficient technologies. One means of addressing this is by improving the energy-related financial literacy of households, which is defined as the combination of energy knowledge and cognitive abilities that are needed in order for agents to take sound decisions with respect to investment in durables. This has been found to improve the ability of agents to calculate the lifetime costs of technologies. The objective of this paper is to evaluate the determinants of energy-related financial literacy of respondents from about 2000 urban households in the Terai region of Nepal, and to analyze whether this ability has an effect on replacement attitudes of households regarding inefficient technologies. Using a novel household survey data, we find that respondents have low levels of energy-related financial literacy. While we find differences in the role of some socio-economic determinants of energy-related financial literacy compared to previous studies from developed countries, we also find certain common results, such as female respondents having lower scores. Additionally, we find that higher levels of energy-related financial literacy, especially stronger computational abilities, lead to more rational attitudes with regards to replacement of old appliances. As development has brought, and continues to bring, more households in low and middle-income countries (LMICs) closer to technologies of their liking, ensuring the adoption of energy-efficient technologies may be critical for ensuring sustainable development in the decades to come, and higher energy-related financial literacy may be one means of achieving that.

A large-scale test of the effects of time discounting, risk aversion, loss aversion, and present bias on household adoption of energy-efficient technologies

This paper empirically and jointly analyses the relations between standard time discounting, risk aversion, loss aversion, and present bias and household stated adoption of low to high stake energy efficiency technologies (EETs): light emitting diodes (LEDs), energy-efficient appliances, and retrofit measures. The analysis relies on a large representative sample drawn from eight European Union countries. Preferences over time, risk, and losses were elicited and jointly estimated from participant choices in incentivized, context-free multiple price list experiments. The findings from econometrically estimating EET adoption equations provide some support for the hypothesis that individuals who are more loss-averse, or more risk-averse, or who exhibit a lower time discount factor are less likely to have adopted EETs. Yet, some of the results (significance levels and effect sizes) appeared sensitive to the addition of covariates, which may be an indication of bad controls. Finally, omitting one or several of the parameters capturing preferences over time, risk, and losses when estimating the EET adoption equations, did not appear to cause omitted variable bias.

Adoption of energy efficient technologies by households – Barriers, policies and agent-based modelling studies

Increasing the adoption of energy efficient technologies by households is one of the formulated strategies to reduce greenhouse gas emissions. This paper presents a systematic review of agent-based modelling studies on the adoption of energy efficiency by households. It starts with an overview of barriers for adoption, of energy efficiency policies, energy efficiency model types. Afterwards, an analysis is given of technologies modelled, policies simulated, decision-making theories included, and the use of empirical data. An overview is presented of how technologies, barriers and policies relate in the models. Furthermore, the core policy recommendations from existing models are presented. The analysis shows that the reviewed studies predominantly focus on a subset of barriers – a lack of capital, a lack of information, high upfront cost, ignorance, inertia and other priorities. So far, agent-based models have focused on how subsidies, technology bans and information campaigns influence energy efficiency adoption. There is ample opportunity for future agent-based modelling research on energy efficiency adoption policy by studying other residential technologies, other barriers, and other policies that fit the agent-based modelling paradigm well.

Climate change impacts in Missouri State Parks: Perceptions from engaged park users

Frequent visitors to natural areas may be more receptive to climate change messages and more likely to act on their environmental values. To aid in developing targeted communication strategies, this exploratory study assessed how engaged state park users perceive climate change impacts and what they view as the agency role in climate change mitigation, education, and communication. Photo elicitation and semi-structured interviews were conducted with 18 members of the Missouri Parks Association (MPA), an advocacy group. While participants expressed concern about the threat of climate change to state parks, some doubted their ability to identify impacts. Despite this, participants accurately identified most of the regional threats predicted by experts, including increased flooding and drought, early blooming, invasive species, and extreme weather. Some reported that participation in the study inspired them to observe climate impacts more closely. Participants affirmed that state parks should lead climate change education and mitigation efforts, while acknowledging the challenges of addressing a politically charged subject. Regarding communication, MPA members recommend focusing on the science behind climate change and ecological mitigation. Although this study focused on Missouri state parks, results may be applicable to visitors in other Midwestern states. Management implications●Study participants supported managerial action on climate change adaptation through education and ecological management.●They acknowledged the political challenges managers face. This study supports presenting scientific evidence to the public and framing climate-change communication around specific, resource-related impacts, especially vegetation, wildlife, and landscape themes that visitors identify as locally salient.●Alternatively, park management could focus natural resource-based climate change education on the broader ecological benefits of environmental behavior.●Staff can also highlighting environmental efforts underway in parks, such as adoption of energy efficient technology and landscape management practices aimed at increasing ecological resilience.●Staff should be educated, empowered and encouraged to deliver locally-relevant climate change interpretation.

Energy Saving Measures and Simulation in the Library Building of University of Surabaya

The rapid rate use of fossil fuels globally results in many environmental problems. The adoption of energy efficient technology has the potential to substantially reduce the amount of energy used in buildings. This paper discuses the energy saving measures and simulation for a six-floor library building, University of Surabaya, Indonesia. Simulation was carried out using the Excellence in Design for Greater Efficiency (EDGE) simulation software. The results of simulation showed that 53% of energy efficiency can be reached, without lowering of the building comfort, by applying of four measures at the same time are daylight photoelectric sensors for internal spaces (OFE29), radiant cooling and heating system (OFE16), higher thermal performance glass (OFE8), and external shading devices (OFE4). The implementation of the four measures would result in reduction of 758 ton of CO2/year with a payback period of 2.2 years.Keywords: Energy efficiency, energy building, energy saving, library building, energy simulation Pemanfaatan energy fosil dalam jumlah yang besar secara global menimbulkan permasalahan berkaitan dengan lingkungan. Usaha untuk mengimplementasikan teknologi dalam penghematan energi sangat signifikan dalam penerapannya pada bangunan. Tulisan ini mendiskusikan parameter-parameter penghematan energi serta mensimulasikannya pada sebuah bangunan perpustakaan Universitas Surabaya yang terdiri dari 6 lantai. Simulasi dilakukan menggunakan sofware EDGE. Hasil simulasi menunjukkan bahwa kombinasi 4 parameter penghematan energi dapat memberikan penghematan energi hingga 53%. Parameter tersebut adalah daylight photoelectric sensors for internal spaces (OFE29), radiant cooling and heating system (OFE16), higher thermal performance glass (OFE8), dan external shading devices (OFE4). Implementasi keempat parameter tersebut akan mengurangi emisi karbodiokasida 758 ton per tahun dengan payback period sekitar 2,2 tahun.Kata kunci: Efisiensi energi, energi pada bangunan, hemat energi, bangunan perpustakaan, simulasi energi

Appliance labeling and consumer heterogeneity: A discrete choice experiment in India

Appliance labels are a widely used policy instrument to increase the adoption of energy-efficient technologies. Most countries use categorical labels to facilitate comparison of appliances based on energy consumption. Studies have found that consumers respond positively to the labels, but the differentiated response to the categories on labels is not well understood in the literature. This study presents the results of a discrete choice experiment corroborated by an analysis of secondary market data to demonstrate that consumers differentiate between label categories; with a greater value being placed on appliances with higher levels of energy efficiency performance. We examine two appliances - air conditioners and refrigerators and observe that there are some differences in consumer response - likely due to the different usage patterns of the two appliances. Consumer responses were observed in hypothetical choice situations constructed ensuring statistical and design efficiency. In a mixed logit model specification with correlated random parameters, the magnitude and the distribution of consumer preference for the highest category of energy efficiency are estimated. The results are validated by estimating the incremental price of higher category of energy efficiency using market data for comparison. The sources of consumer heterogeneity for the highest category of energy efficiency are identified after controlling for other consumer variables. The findings presented in this paper are useful for improving the effectiveness of existing energy efficiency programs and designing new programs to accelerate adoption of energy efficient technologies.

Determinants of enterprises use of energy efficient technologies: Evidence from urban Ethiopia

In this paper, we examine the determinants of Micro, Small and Medium Enterprises’ adoption of energy efficiency practices and technologies, using cross-sectional data of 8174 randomly selected enterprises from ten major urban areas of Ethiopia. For identification, we rely on a generalized ordered probit model. The findings reveal that, as the size of the enterprise becomes larger, it is more likely the enterprise will undertake energy efficient practices and technologies. This may be because larger enterprises are less likely to face constraints related to capital or know-how to adopt these technologies. Further, clustered enterprises are also more likely to use energy efficient technologies, revealing spillover effect of being located in the same place or it may reflect entrepreneurs’ predisposition towards efficiency. By contrast, entrepreneurs who perceive pro-environmental activities as unnecessary and costly are less likely to use energy efficient technologies. Our results imply that expansion of industrial zones (clusters) to newly established enterprises may help in increasing adoption of energy efficient technologies. Further, informational (educational) campaigns about the private and public(environmental) benefits of energy efficient technologies are also important.

Modeling household energy consumption and adoption of energy efficient technology

This study develops a model to study household energy use behavior that can impose common preferences for feasible demand estimation with multiple discrete technology choices and multiple continuous energy consumption uses. The model imposes fixed proportions production and additivity of uses for plausible estimation feasibility while adopting a second-order translog flexible functional form to focus on flexibility in identification of consumer preferences that determine interactions among energy uses and between short-run and long-run choices. Using a unique household-level dataset from California, the model is applied to estimate short-run household demand for electricity and natural gas and the long-run technology choices with respect to clothes washing, water heating, space heating, and clothes drying. The estimation results support commonality of underlying preferences except in one case that is explained by an unavailable variable.

Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis

Improvement in energy efficiency is one of the main options to reduce energy demand and greenhouse gas emissions. However, large-scale deployment of energy-efficient technologies is constrained by several factors. Employing a survey of 509 industrial and commercial firms throughout Ukraine and a generalized ordered logit model, we quantified the economic, behavioral, and institutional barriers that may impede the deployment of energy-efficient technologies. Our analysis shows that behavioral barriers resulted from lack of information, knowledge, and awareness are major impediments to the adoption of energy-efficient technologies in Ukraine, and that financial barriers may further impede investments in these technologies especially for small firms. This suggests that carefully targeted information provisions and energy audits will enhance Ukrainian firms' investments in energy-efficient technologies to save energy consumption, improve productivity, and reduce carbon emissions from the productive sectors.

How do policies for efficient energy use in the household sector induce energy-efficiency innovation? An evaluation of European countries

Research on innovation induced by climate-mitigation policy has been focused predominantly on the supply side of the energy system. Despite considerable climate-mitigation potential on the demand side, less attention is given to the innovation effect of policies addressing the household sector. Based on a comprehensive data set, including 550 policy measures over 30 years (1980–2009) and covering 21 European countries, we find—based on econometric estimations—that policies targeting efficient energy use in the household sector significantly increase the number of patented energy-efficiency inventions. A comparison of the different policy types reveals a particularly strong influence from financial subsidies and energy labels. The results indicate that policies supporting early market adoption of energy-efficient technologies are effective in fostering innovation.

Biomass energy consumption, economic growth and carbon emissions: Fresh evidence from West Africa using a simultaneous equation model

This study investigated the relationship among biomass energy consumption, economic growth and carbon emissions in West Africa during 1980–2010. This nexus was explored by integrating the pollution production function and energy demand function with an augmented endogenous growth model. Moreover, this paper employed a simultaneous equation model estimated with three stage least squares (3SLS). Analysis was conducted for individual West African countries and panel of the countries.The overall results show that a complete significant interactive relationship (feedback effects) exists among GDP, biomass consumption and carbon emission in five West Africa countries (Nigeria, Burkina Faso, The Gambia, Mali and Togo). There are partial significant links among the variables in the remaining West African countries. A complete significant nexus among the variables was also discovered for panel of the countries. Based on the results, some policy implications were drawn for West African countries. There is need to reduce the prevailing high energy intensity of output in West Africa through the adoption of energy-efficient technologies. It is also imperative to find clean energy alternatives (or complementary) to biomass use so as to reduce the resulting high carbon emissions which may hinder the attainment of high and sustainable growth in the nearest future.