Investments In Energy-efficient Technologies Research Articles

ЕНЕРГЕТИЧНА СКЛАДОВА ЕКОЛОГІЧНОЇ БЕЗПЕКИ: УКРАЇНА У ВІДОБРАЖЕННІ

Energy security is important for any state. It is important for the state''s environment and economy. Ukraine is an energy dependent state, as well as an import-energy dependent one. The paper is devoted to the statistical analyses of Ukrainian energy sector from the position of its world representation. The purpose of this research is on the base of statistical analysis of current internal and external trends in the energy sector of Ukraine to consider possible mechanisms to stimulate and accelerate environmental-friendly energy security of Ukraine. Main objectives: to trace the dynamics of world and Ukrainian main energy indicators in the synergy with the state energy security index; to cluster launched efficiency-targeted energy projects in Ukraine in geo-industry aspect. Analyses of dynamics of energetic vs environmental performance of Ukraine in 2000-2014 world ranks shows that being in low segment of world rankings on aspects of energy and environmental security, Ukraine shows positive tendencies to the improvement, however with slow steps. In order to identify the most promising and most attractive sector of the economy in Ukraine to investors we held grouping of current launching energy-efficient projects in the aspect of industries and sectors where energy-efficient technologies operate. The rank analyses depicted that the most popular among economic sectors for energy efficiency investments are enterprises of agriculture and consumer goods industry, and the most attractive regions of Ukraine for implementation of investments in energy efficient technologies are Ivano-Frankivsk, Luhansk and Kherson oblasts.

Extending the energy efficiency gap

In order to reach the EU: s 20–20–20 primary energy savings target, energy efficiency needs to increase. Previous research on energy use and energy efficiency has focused mainly on the diffusion of energy efficient technologies. The discrepancy between optimal and actual implementation of energy efficient technologies has been illustrated in numerous articles and is often referred to as the energy efficiency gap. However, efficient technologies are not the only ways to increase energy efficiency. Empirical studies have found that a cost-effective way to improve energy efficiency is to combine investments in energy-efficient technologies with continuous energy management practices. By including energy management into an estimated energy efficiency potential this paper introduces an extended energy efficiency gap, mainly in manufacturing industries and the commercial sector. The inclusion of energy management components in future energy policy will play an important role if the energy savings targets for 2020, and later 2050, are to be met in the EU.

Exploring the potential for energy conservation in French households through hybrid modeling

Although the building sector is recognized as having major potential for energy conservation and carbon dioxide emission mitigation, conventional bottom–up and top–down models are limited in their ability to capture the complex economic and technological dynamics of the sector. This paper introduces a hybrid framework developed to assess future household energy demand in France. Res-IRF, a bottom–up module of energy consumption for space heating, has several distinctive features: (i) a clear separation between energy efficiency, i.e. investment in energy efficient technologies, and sufficiency, i.e. changes in the utilization of energy consuming durables which allows the rebound effect to be assessed; (ii) the inclusion of barriers to energy efficiency in the form of intangible costs, consumer heterogeneity parameters and the learning-by-doing process; (iii) an endogenous determination of retrofitting which represents trade-offs between retrofit quantity and quality. Subsequently, Res-IRF is linked to the IMACLIM-R computable general equilibrium model. This exercise shows that, compared to a 37% reduction in final energy demand achievable in business as usual in existing dwellings in 2050, an additional reduction of 21% could be achieved if relevant barriers to efficiency and sufficiency were overcome.

New Approaches for Energy Efficiency Market Penetration

ABSTRACT Penetrating the energy efficiency market is a challenge anywhere in the world. Many business models have been designed and implemented. Despite the fact that energy prices are continuously on the rise, industries in most countries have maintained the practice of investing in expanding production rather than in making operations more energy efficient. The higher cost of operations is simply transferred to the consumers in the form of increased prices for services and products. To date, investments in production expansion always win over investments in reducing operating costs through improving the efficiency of energy use. However, with oil prices exceeding $100 per barrel, the benefits of energy efficiency—reduced costs, increased productivity and competitiveness, economic development, and improved environment—are becoming increasingly attractive and feasible. Yet investment in energy efficient technologies and systems lags behind the potential for benefits. Investors are still reluctant to implement energy efficiency projects for several reasons. This article examines a new business model in energy efficiency market penetration. The new business approach adds energy consulting services and training to the traditional energy project services. The ESCO's consulting services establish energy programs with the host organization. The program aims to increase awareness and makes the client's staff feel that the project is its own. This helps success and sustainability. It builds confidence in the client for high investment energy efficiency projects. In any energy efficiency market, sustainability of ESCOs is very difficult. Project contracts are relatively large, and their timing is usually uneven. A high business development cost is associated with winning project contracts. The new business model creates a steady stream of smaller income to support the ESCO staff and office between projects. Examples of the implementation of new market penetration models are presented in this article.

Making a stronger case for industrial energy efficiency by quantifying non-energy benefits

This paper describes a more compelling case for industry to promote the non-energy benefits of energy efficiency investments. We do this in two ways to actively appeal to chief executive officers (CEOs) and chief financial officers (CFOs) primary responsibility: to enhance shareholder value. First, we describe the use of a project-by-project corporate financial analysis approach to quantify a broader range of productivity benefits that stem from investments in energy-efficient technologies, including waste reduction and pollution prevention. Second, and perhaps just as important, we present such information in corporate financial terms. These standard, widely-accepted analysis procedures are more credible to industry than the economic modeling done in the past because they are structured in the same way corporate financial analysts perform discounted cashflow investment analyses on individual projects. Case studies including such financial analyses, which quantify both energy and non-energy benefits from investments in energy-efficient technologies, are presented. Experience shows that energy efficiency projects’ non-energy benefits often exceed the value of energy savings, so energy savings should be viewed more correctly as part of the total benefits, rather than the focus of the results. Quantifying the total benefits of energy efficiency projects helps companies understand the financial opportunities of investments in energy-efficient technologies. Making a case for investing in energy-efficient technologies based on energy savings alone has not always proven successful. Evidence suggests, however, that industrial decision makers will understand energy efficiency investments as part of a broader set of parameters that affect company productivity and profitability.

The role of building energy efficiency in managing atmospheric carbon dioxide

This paper provides an overview of recent findings concerning trends and prospects for carbon dioxide emissions from the buildings sector. Reports by the Intergovernmental Panel on Climate Change and the US Department of Energy note that buildings account for 25–30% of total energy-related carbon dioxide (CO2) emissions. This means building energy use contributes 10–12% of the increasing net radiative forcing that is inducing global warming. On average, between 1980 and 1990, CO2 emissions from buildings have grown by 1.7% per year with rates of growth four times greater in developing countries. The high growth in developing countries is mainly due to changes in structural factors (demographics, economic growth) and increases in the amount of energy services demanded by energy consumers. Experience in OECD countries has shown that technologies and policies exist to significantly reduce energy demand in buildings. Some of the main policy instruments to reduce energy demand include energy efficiency standards for buildings and appliances, voluntary agreements, financial/economic incentives, and market transformation programs. When converted to carbon emissions, energy forecasts of the World Energy Council suggest that business-as-usual trends will result in building CO2 emissions growing by 2.6% a year to the year 2020, with the vast majority of the growth taking place in non-OECD countries. Significant opportunities to help raise building energy efficiency at home and abroad exist, should countries begin to more fully commit to mitigating greenhouse gases. Commitments by countries to contain the growth of greenhouse gas emissions in an economically sound manner is likely to induce significant increases in the investment in energy-efficient technologies.

The "New" View of Investment Decisions and Public Policy Analysis: An Application to Green Lights and Cold Refrigerators

Recent research in investment theory emphasizes the importance of sunk investment costs, uncertainty in returns, and flexibility in investment timing. Allowing for the presence of these characteristics alters traditional discounted cash flow rules for when to invest. Those rules will recommend investing at lower rate-of-retum thresholds than is optimal. This article describes this research and suggests the range of potential situations to which the theory applies. It also discusses the implications for policy analysis and suggests that government programs to encourage investment may, in some cases, be inappropriate. After discussing a wide array of possible applications, we focus on one in particular: programs to encourage energy-efficient investment. The examples suggest the importance of applying the new investment theory for economic analysis of investment in energy-efficient technologies.

Economics and rational conservation policy

Energy analysts have long been concerned with the apparently low level of energy-efficient investments and have suggested the presence of various market barriers and failures that hinder investment. The concept of a barrier as defined here is some force that is working against investment in energy-efficient technologies. Market failures, on the other hand, are failures of the competitive paradigm that lead to economically inefficient outcomes. Market barriers require no particular response on the part of government while market failures may call for some policy response.