Sectoral Energy Intensity Research Articles

Energy intensity trends and scenarios for China’s industrial sectors: a regional case study

Due to its rapid industrialization and urbanization, China faces the daunting challenge of sharply growing energy and resource consumption. It is now indispensable for the nation to alter its course of development into more sustainable paths in terms of energy and resource efficiency. In this paper, we discuss the energy intensity of the industrial sectors of the Yangtze River Delta, consisting of Shanghai City and the neighboring province of Jiangsu—the fastest economically developing region of the country—and argue possible strategies for energy efficient industrial activities there. We first examine the historical trends of energy intensity associated with industrial sectors and study the factors affecting the evolution of these trends by applying decomposition analysis. We then argue that if “business as usual” (BAU) development patterns are continued, energy intensity level in both regions may surpass China’s policy targets in 2010, and GDP growth as well as energy consumption will exceed possible pathways under current policy targets by 2020. Thus, appropriate measures are urgently needed to lower energy intensity and consumption. Based upon these analyses as well as the Chinese government’s policy orientation, we propose two options as alternative scenarios for improving practices in energy-intensive industries, particularly targeting the cement and steel production sectors. These options are: (1) diffusion of highly energy efficient technologies into these industries, and (2) promotion of a circular economy and industrial symbiosis. We highlight that these options can potentially lead to energy savings and reductions in resource consumption associated with industrial activities and can serve as a regional model for more sustainable industrial activities in China.

The Oil Price-Microeconomy Relationship is Alive and Well

This paper analyzes the oil price-macroeconomy relationship using a model that aims at taking into account all the sources of instability highlighted by previous studies. Mainly, we adopt a sectoral approach and weight oil prices by sectoral energy intensities. Further, inspired by Alfred Marshall’s treatment of time, we also put forward a new approach to model short-term interactions between economic variables that relies on an error-correcting mechanism depending on cumulative errors. Applied to the U.S. economy, our model enables us to estimate stable relationships between oil prices and sectoral economic indicators. Further, it explains both the long-run weakening of the relationship between oil prices and aggregate economic activity and its short-run instability. We show that the oil price-macroeconomy relationship is fading but the oil price-microeconomy relationship is alive and well.

Dynamics of final sectoral energy demand and aggregate energy intensity

This paper proposes a regional and sectoral model of global final energy demand. For the main end-use sectors of consumption (industrial, commercial and public services, residential and road transportation), per-capita demand is expressed as an S-shaped function of per-capita income. Other variables intervene as well, like energy prices, temperatures and technological trends. This model is applied on a panel of 101 countries and 3 aggregates (covering the whole world) and it explains fairly well past variations in sectoral, final consumption since the beginning of the 2000s. Further, the model is used to analyze the dynamics of final energy demand, by sector and in total. The main conclusion concerns the pattern of change for aggregate energy intensity. The simulations performed show that there is no a priori reason for it to exhibit a bell-shape, as reported in the literature. Depending on initial conditions, the weight of basic needs in total consumption and the availability of modern commercial energy resources, various forms might emerge.

What induced China's energy intensity to fluctuate: 1997–2006?

China is the second largest energy consumer in the world. During 1997–2002, China's energy intensity declined by 33%. However, it rose by 10.7% over 2003–2005, and declined by 1.2% in 2006. What induced China's energy intensity to fluctuate so drastically? Industry accounts for approximately 70% of the total energy consumption in China. In this paper, we decompose China's industrial energy intensity changes between 1997 and 2002 into sectoral structural effects and efficiency effects (measured by sectoral energy intensities at two-digit level and including the shifts of product mix in the sub-sector or firm level), using Törnqvist and Sato–Vartia Index methods. The results show that in this period, efficiency effects possibly contributed to a majority of the decline, while the contribution from structural effects was less. During 2003–2005, the excessive expansion of high-energy consuming sub-sectors and the high investment ratio were foremost sources of the increasing energy intensity. Attributed to the government efforts, the energy intensity has started to decline slightly since July 2006. In future, to save more energy, in addition to technical progress, China should attach more importance to optimizing its sectoral structure, and lowering its investment ratio.

The Everyday Life Context of Increasing Energy Demands: Time Use Survey Data in a Decomposition Analysis

SummaryIndustrial ecologists have modeled with precision the material foundations of industrial systems, but given less attention to the demand for products and the drivers of structural changes in these systems. This article suggests that time use data complement data on monetary expenditure and can be used to elucidate the everyday life context in which the changes in the economy take place. It builds upon the claim that goods are not direct sources of utility, but enter specific household activities as inputs. A second argument for the proposed approach is that it can be used to introduce and foster human agency in analyses of production systems. The article uses Finnish time use survey data, consumption expenditure data, and data on the sectoral energy intensities of financial output in the Finnish economy. First, a measure of the energy intensity of activities is derived by relating consumer time use and the required direct and indirect energy requirements. Second, the results include a decomposition of changes in the energy requirements of private consumption in Finland during the 1990s. It is shown that although the same activities on average require increasing energy inputs per unit of time, Finns have simultaneously changed the structure of their everyday life toward less energy‐intensive activities.

Energy intensities and CO<SUB align=right>2 emissions in Catalonia: a SAM analysis

In this paper, we estimate sectoral energy intensities and CO2 emissions for the Catalonian economy. In order to evaluate energy intensities, we use the SAM (Social Accounting Matrix) multiplier analysis applied to a SAM of the economy. CO2 emissions are estimated by means of the Leontief input-output submodel of the SAM, together with a table of coefficients of emissions per unit of monetary expenditures. This new methodology allows us to dispense with energy input-output tables for the base period. Our results are of the same order of magnitude as others obtained by physical measurement methods. We also simulate how changes in demand and energy energy efficiency parameters may affect CO2 emissions for the economy.

Eight methods for decomposing the aggregate energy-intensity of industry

Since the early 1980s, the decomposition technique has been widely used in industrial energy analysis and for energy-policy evaluation. We describe eight different methods for decomposing the aggregate energy intensity of industry into the impacts associated with changes in industrial production structure and sectoral energy intensity. These eight methods, derived from economic index numbers, include two methods that are often used by researchers and three methods that are proposed for the first time. We show the linkages between index numbers and decomposition methods, which would assist analysts in method selection when undertaking decomposition studies. A simple example is presented to illustrate the characteristics of the eight methods.

The dynamics of the energy intensity of the Russian economy against the background of global trends

The paper addresses and compares the dynamics of energy intensity of Russia and some industrial countries. The possible impacts of two scenarios of Russian economy development in the next 30 years on the energy intensity of industry, transport and residential sectors are considered. A forecasting method is based on application of a set of models, including a 20-sector dynamic model of Russia's economy. Analysis shows that the autonomous decline in energy/GNP ratio in Russia will be much more intensive than in Europe. However, all things being equal, the energy intensity of the economy and per capita energy consumption in Russia should be higher than in Western Europe due to peculiarities in the structure of the economy, the climate and other factors.

Energy prices, eco-tax policies and competitiveness in the industrial sector

This paper analyses the determinants of energy prices in industry and their impacts on energy productivity in selected countries that have introduced environment-related taxes on fossil fuels. Energy prices are mainly determined by the developments on international resource markets and by the structure of energy production in the respective countries. Owing to concerns of international competitiveness, current environment-related taxes go along with numerous deductions and exemptions in most countries so that they seldom influence energy prices. There is a positive link between energy price, energy productivity and energy intensity of various industrial sectors, but the performance of industry in terms of energy productivity seems to be barely affected by current environment-related taxation.

An analysis of sectoral energy intensity in India

An analysis of sectoral energy intensity in India

An analysis of sectoral energy intensity in India

The paper uses an input–output framework to calculate energy intensities for different sectors in Indian economy. The overall coal intensity has declined during 1983–1990 but oil and electricity intensities have increased during 1983–1990. The results indicate that sectors like coal tar products, wool, silk, synthetic textiles, non-ferrous metals, paper and paper products, leather and leather products, non-metallic mineral products have worsened during 1983–1990. Sectors like cement, fertilizer, etc. have become energy efficient.

The use of physical indicators for the monitoring of energy intensity developments in the Netherlands, 1980–1995

Decreasing the energy intensity of processes and activities is an important means by which to reduce energy-related carbon dioxide emissions in the near future. Monitoring of the developments in energy intensity is necessary in order to check whether policies to decrease energy intensity have the desired effect. Value-based indicators have been used in many such monitoring studies. It has been suggested only recently that physical indicators might lead to a better understanding of energy intensity developments. In this paper we aim at developing meaningful physical energy intensity indicators for all sectors of the Dutch economy and to study the sectoral energy intensity developments for the period 1980–1995 by means of these indicators. It turned out to be possible to develop aggregate activity indicators on a physical basis for most of the subsectors. Physical and value-based energy intensity indicators yielded substantial differences in the energy intensity developments calculated. On average, the annual decrease in energy intensity for the period 1980–1995 was 1.4%, calculated on the basis of physical energy intensity indicators, and 1.6% on the basis of economic indicators. The methodology based on physical indicators turned out to be suitable for monitoring energy intensity developments. However, more data are required and thorough analysis of the energy consumption per subsector is necessary to improve this type of analysis based on physical activity indicators.

Decomposition of energy-induced CO 2 emissions in manufacturing

This paper presents two general methods for decomposing energy-induced carbon dioxide (CO 2) emissions in the manufacturing industry based on the Divisia index approach. Changes in the aggregate CO 2 intensity are distributed among four causal factors, namely fuel CO 2 emission coefficients, manufacturing production structure, fuel shares and sectoral energy intensities. We describe the basic features of the methodology and the information it provides. We then use four specific methods to decompose changes in the aggregate CO 2 intensities in China, South Korea and Taiwan. The results obtained show that the intensity effect has the largest impact on the changes in the aggregate CO 2 intensities in the three economies.

Decomposition of Aggregate Energy Intensity of Industry with Application to China, Korea and Taiwan

There have been significant decreases in the aggregate energy intensity of industry in China, Korea and Taiwan since 1980. We decompose changes in this often-used energy performance indicator into contributions associated with industry product mix and sectoral energy intensity. In all cases, the results obtained show a large effect of changes in sectoral energy intensity and a relatively smaller effect of changes in product mix. We further decompose the sectoral energy intensity effect to identify the impact of fuel substitution. It is concluded that decreases in the aggregate energy intensity of industry in the three economies were due primarily to improvements in fuel use efficiency.

Decomposition of the energy-intensity index with application for the Korean manufacturing industry

We present a method for decomposing industrial energy demand using the Divisia approach. This method involves decomposition of the aggregate energy-intensity index measured in terms of energy consumption per unit output. The factors considered are changes in production structure and sectoral energy intensities. The effect associated with sectoral energy intensities is further decomposed into those associated with fuel substitution and real energy intensities. We have applied the methodology to data of the Korean manufacturing industry. The results obtained show that increases in aggregate intensity for total energy consumption since 1988 are due primarily to the effect of increased real energy intensities. The contributions from structural changes and interfuel substitution were relatively small.

The Evolution of Taiwan's

The purpose of this paper is to investigate the context of energy policy in Taiwan over time (ie. before and after the oil crises) and analyze its effect on the energy industries and other sectors. Emphasis is placed on laws, regulations and measures which relate to energy policy. A model employing a Divisia index to decompose the components of energy intensity of Taiwan's industrial sectors from 1961 to 1990 is utilised. The paper also draws policy implications and discusses the outlook for Taiwan's energy policy in the future.

Decomposition methodology in industrial energy demand analysis

We discuss some methodological and application issues related to decomposing national industrial energy consumption into changes associated with aggregate industrial production level, production structure and sectoral energy intensity. Past studies are classified and reviewed with respect to study scope and decomposition technique. A framework for decomposition method formulation which incorporates three different approaches is presented. Several specific methods are described and their applications are illustrated with an example. Relevant application issues, such as method selection, periodwise vs time-series decomposition, significance of levels of sector disaggregation, and result interpretation are discussed.

Using scenarios to explore future energy demand in industrialized countries

We present three scenarios of OECD average sectoral energy intensities in the year 2010. These represent the direction in which current and expected trends seem to be moving; what might happen if energy efficiency were given a high priority by governments and the private sector; and what might be achieved if restraining energy use became a very high priority for public policy (eg if CO 2 emissions were recognized as a serious problem). The scenarios delineate an important (if somewhat vague) boundary between a relatively easily attainable improvement in efficiency and a more problematical level of change. With a mixture of pricing and other policies, they suggest that OECD primary energy use in 2010 could be 20–25% less than currently seems likely (or about equal to demand in 1989) if fairly determined efforts were made. To increase that reduction to 40–45% would be very challenging, but not impossible.

Interfuel substitution and decomposition of changes in industrial energy consumption

Several recent studies have dealt with the methodology of decomposing the change in industrial energy consumption between two years into three separate components. Each component is associated with one of the following three effects: changes in production level, product-mix, and sectoral energy intensity. The component attributable to sectoral energy intensity gives the overall effect of interfuel substitution, changes in the physical efficiencies of fuel use, and factors which are unaccounted for. In this paper, we present a method for isolating the effect of interfuel substitution such that the change in energy consumption is decomposed into four separate components. With this extension, the mechanisms of change in energy use in industry can be studied in depth and with improved understanding. We have applied our method to data of Taiwan and the results are presented. We also discuss the assumptions made and some practical considerations in the use of our method.

Dislocation structure in the strain localized region in fatigued 70/30 brass and the interaction with grain boundary: Kaneshiro, H., Katagiri, K., Makabe, C., Yafuso, T. and Kobayashi, H. Metall. Trans. A21A, (3), 667–671, Mar. 1990

Intangible capital has been found to be an increasingly important source of productivity and economic growth. However, its effects on energy intensity have received little attention. Given the importance of reducing energy intensity, this study advances the understanding of the relationship between intangible capital and sectoral energy intensity by taking advantage of a rich dataset of 40 economies derived from the World Input-Output Database (WIOD), spanning across 13 years (1995–2007). A relatively robust causal relationship between intangible capital and sectoral energy intensity has been identified. The qualitative and quantitative interactions of this relationship with income level and sectoral heterogeneity have also been revealed.It is found that the effect of intangible capital on reducing sectoral energy intensity generally diminishes along with increasing income level but a moderate quadratic relationship is identified in some types of intangible capital. Finally, sectors where intangible capital have the largest and smallest effect are also pinpointed.