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Article
Publication date: 1 May 2005

Wilco W. Chan

The over‐estimation of the energy requirements in new hotels would not only increase energy consumption but also result in other additional costs. To address this issue…

Abstract

Purpose

The over‐estimation of the energy requirements in new hotels would not only increase energy consumption but also result in other additional costs. To address this issue, this study attempts to establish the benchmark of electricity consumption and models energy demand of hotels.

Design/methodology/approach

A survey of 17 hotels and two power suppliers was conducted. Two approaches, namely averaging and multiple regression, were used to analyze the data.

Findings

The former approach found that the average electricity usage was 313 kWh/m2/year for city hotels in subtropical areas. The multivariate analysis revealed two significant variables – cooling degree day and number of occupied rooms– which determine the level of electricity consumption. Based on these findings, projections on electricity consumption for hotels in the next few years were made.

Originality/value

This study provides a fine‐tuned norm of electricity consumption, confirms the best temperature of cooling degree days for modeling electricity demand and further highlights some practical measures on saving electricity.

Details

International Journal of Contemporary Hospitality Management, vol. 17 no. 3
Type: Research Article
ISSN: 0959-6119

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Article
Publication date: 30 July 2021

Amit Prakash Jha and Sanjay Kumar Singh

The Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener…

Abstract

Purpose

The Indian power sector is dominated by coal. Environmental awareness and advances in techno-economic front have led to a slow but steady shift towards greener alternatives. The distributions of both fossil fuel resources and renewable energy potential are not uniform across the states. Paper attempts to answer how the states are performing in the sector and how the renewable energy and conventional resources are affecting the dynamics.

Design/methodology/approach

The authors employ a two-stage data envelopment analysis (DEA) to rank the performance of Indian states in the power sector. Multi-stage analysis opens up the DEA black-box through disaggregating power sector in two logical sub-sectors. The performance is evaluated from the point-of-view of policy formulating and implementing agencies. Further, an econometric analysis using seemingly unrelated regression equations (SURE) is conducted to estimate the determinants of total and industrial per-capita electricity consumption.

Findings

Efficiency scores obtained from the first phase of analysis happens to be a significant explanatory variable for power consumption. The growth in electricity consumption, which is necessary for economic wellbeing, is positively affected by both renewable and non-renewable sources; but conventional sources have a larger impact on per-capita consumption. Yet, the share of renewables in the energy mix has positive elasticity. Hence, the findings are encouraging, because development in storage technologies, falling costs and policy interventions are poised to give further impetus to renewable sources.

Originality/value

The study is one of the very few where entire spectrum of the Indian power sector is evaluated from efficiency perspective. Further, the second phase analysis gives additional relevant insights on the sector.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

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Article
Publication date: 1 June 2021

Asia Kausar, Faiza Siddiqui, Abdul Khalique Gadhi, Saif Ullah and Omer Ali

This study aims to find out the dynamic and causal long-run and the short-run relationship between energy consumption (electricity usage) and energy production (electricity

Abstract

Purpose

This study aims to find out the dynamic and causal long-run and the short-run relationship between energy consumption (electricity usage) and energy production (electricity creation) and also find out the relationship of these two variables based on past values for the SAARC nations (Pakistan, India, Bangladesh, Sri Lanka and Nepal).

Design/methodology/approach

Vector auto-regressive (VAR), auto-regressive distributive Lag (ARDL) and Granger causality test have been used in this study to estimate the dynamic and causal relationship between variables.

Findings

The unit-root tests were found insignificant at a magnitude but significant at the initial difference. VAR test results were found insignificant, which means co-integration among variables exists, which was tested by ARDL approach. Results suggested that energy consumption has a short-run relationship with energy production, but it was found insignificant in the other way round. The results of this study also suggest that both variables cause each other in the long run.

Research limitations/implications

This study was conducted in a limited environment as we do not have access to energy policies of SAARC countries, and also data access was limited; only five countries’ data was available. This study can help government bodies and policymakers to exchange the electricity across borders to diminish the electricity shortage in the SAARC region, as countries with abandoned resources can produce electricity at a little cost.

Originality/value

Penal data for this study was collected from World Development Indicators from the year 1971 to 2015.

Details

International Journal of Energy Sector Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1750-6220

Keywords

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Abstract

Details

Energy Economics
Type: Book
ISBN: 978-1-78756-780-1

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Article
Publication date: 29 January 2018

Djula Borozan and Dubravka Pekanov Starcevic

The purpose of this paper is to explore the developments in final electricity consumption, estimate the portions of changes that can be attributed to national, sectoral or…

Abstract

Purpose

The purpose of this paper is to explore the developments in final electricity consumption, estimate the portions of changes that can be attributed to national, sectoral or regional factors, and to investigate determinants of the regional component (RC) in Croatia at the subnational level in the period 2001-2013.

Design/methodology/approach

In the first stage, the dynamic shift-share method is used to decompose final electricity consumption, and then, in the second stage, the panel population-averaged logit model is conducted to find the main determinants of the extracted RC.

Findings

The results show that both the sectoral factor and the regional factor are responsible for an increase in electricity consumption over the period considered, whereby the regional specificities had a larger impact in general. Thereby, the most developed regions, including the tourism-oriented ones, exhibited the largest average increase in electricity consumption mainly due to positive effects of the regional-specific factors, while the negative effects of these factors were mainly responsible for low average rates of changes in electricity consumption in less developed regions.

Practical implications

The results suggest that regional-specific energy conservation programs might be more effective in improving energy efficiency than the sector-oriented ones, as well as that socio-economic and contextual determinants matter when it comes to the probability of having a positive regional effect on the electricity consumption rate.

Originality/value

The paper investigated the determinants of the extracted RC which has not yet been addressed in the energy economics literature.

Details

International Journal of Energy Sector Management, vol. 12 no. 2
Type: Research Article
ISSN: 1750-6220

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Article
Publication date: 9 May 2016

Markus Surmann, Wolfgang Andreas Brunauer and Sven Bienert

On the basis of corporate wholesale and hypermarket stores, this study aims to investigate the relationship between energy consumption, physical building characteristics…

Abstract

Purpose

On the basis of corporate wholesale and hypermarket stores, this study aims to investigate the relationship between energy consumption, physical building characteristics and operational sales performance and the impact of energy management on the corporate environmental performance.

Design/methodology/approach

A very unique dataset of METRO GROUP over 19 European countries is analyzed in a sophisticated econometric approach for the timeframe from January 2011 until December 2014. Multiple regression models are applied for the panel, to explain the electricity consumption of the corporate assets on a monthly basis and the total energy consumption on an annual basis. Using Generalized Additive Models, to model nonlinear covariate effects, the authors decompose the response variables into the implicit contribution of building characteristics, operational sales performance and energy management attributes, under control of the outdoor weather conditions and spatial–temporal effects.

Findings

METRO GROUP’s wholesale and hypermarket stores prove significant reductions in electricity and total energy consumption over the analyzed timeframe. Due to the implemented energy consumption and carbon emission reduction targets, the influence of the energy management measures, such as the identification of stores associated with the lowest energy performance, was found to contribute toward a more efficient corporate environmental performance.

Originality/value

In the context of corporate responsibility/sustainability of wholesale, hypermarket and retail corporations, the energy efficiency and reduction of carbon emissions from corporates’ real estate assets is of emerging interest. Besides the insights about the energy efficiency of corporate real estate assets, the role of the energy management, contributing to a more efficient corporate environmental performance, is not yet investigated for a large European wholesale and hypermarket portfolio.

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Article
Publication date: 16 August 2019

Sima Rani Dey and Mohammed Tareque

The purpose of this paper is to assess the empirical cointegration, long-run and short-run dynamics as well as causal relationship between electricity consumption and real…

Abstract

Purpose

The purpose of this paper is to assess the empirical cointegration, long-run and short-run dynamics as well as causal relationship between electricity consumption and real GDP in Bangladesh for the period of 1971‒2014.

Design/methodology/approach

Autoregressive Distributed lag (ARDL) “Bound Test” approach is employed for the investigation in this study.

Findings

Both short-run and long-run coefficients are providing strong evidence of having positive significant association between electricity consumption and GDP. Our long-run results remain robust to different measurements and estimators as well. The study reveals the unidirectional causal flow running from per capita electricity consumption to per capita real GDP in the short run. The study result also yields strong evidence of bidirectional causal relationship between per capita electricity consumption and per capita real GDP in the long run with feedback. It is suggested that both electricity generation and conservation policy will be effective for Bangladesh economy.

Originality/value

In prior studies, lack of causality between electricity consumption and GDP is due to the omitted variables. Combined effects of public spending and trade openness on GDP and electricity consumption are also considerable.

Details

Journal of Asian Business and Economic Studies, vol. 27 no. 1
Type: Research Article
ISSN: 2515-964X

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Article
Publication date: 13 July 2021

Timothy King Avordeh, Samuel Gyamfi and Alex Akwasi Opoku

The purpose of this paper is to investigate the impact of temperature on residential electricity demand in the city of Greater Accra, Ghana. It is believed that the…

Abstract

Purpose

The purpose of this paper is to investigate the impact of temperature on residential electricity demand in the city of Greater Accra, Ghana. It is believed that the increasing trend of temperatures may significantly affect people’s lives and demand for electricity from the national grid. Given the recurrent electricity crisis in Ghana, this study will investigate both the current and future residential energy demands in the light of temperature fluctuations. This will inform future power generation using renewable energy resources mix to find a sustainable solution to the recurrent energy demand challenges in Ghana. This study will help the Government of Ghana to better understand the temperature dependence of residential energy demand, which in turn will help in developing behavioral modification programs aimed at reducing energy consumption. Monthly data for the temperature and residential electricity consumption for Greater Accra Region from January 2007 to December 2018 obtained from the Ghana Meteorological Service (GMS) and Ghana Grid Company (Gridco), respectively, are used for the analysis.

Design/methodology/approach

This study used monthly time series data from 2007 to 2018. Data on monthly electricity demand and temperature are obtained from the Ghana Grid Company and GMS. The theoretical framework for residential electricity consumption, the log-linear demand equation and time series regression approaches was used for this study. To demonstrate certain desirable properties and to produce good estimators in this study, an analysis technique of ordinary least squares measurement was also applied.

Findings

This study showed an impact on residential electricity requirements in the selected regions of Greater Accra owing to temperature change. The analysis suggests a substantial positive response to an increase in temperature demand for residential electricity and thus indicates a growth of the region’s demand for electricity in the future because of temperature changes. As this analysis projects, the growth in the electricity demand seems too small for concern, perhaps because of the incoherence of the mechanisms used to regulate the temperature by the residents. However, two points should be considered when drawing any conclusions even in the case of Greater Accra alone. First, the growth in the demand for electricity shown in the present study is the growth of demand due only to increasing temperatures that do not consider changes in all the other factors driving the growth of demand. The electricity demand will in the future increase beyond what is induced by temperature, due to increasing demand, population and mechanization and other socioeconomic factors. Second, power consumption understated genuine electricity demand, owing to the massive shedding of loads (Dumsor) which occurred in Ghana from 2012 to 2015 in the analysis period that also applies in the Greater Accra region. Given both of these factors, the growth in demand for electricity is set to increase in response to climate change, which draws on the authorities to prepare more critically on capacity building which loads balancing. The results also revealed that monthly total residential electricity consumption, particularly the monthly peak electricity consumption in the city of Accra is highly sensitive to temperature. Therefore, the rise in temperature under different climate change scenarios would have a high impact on residential electricity consumption. This study reveals that the monthly total residential electricity demand in Greater Accra will increase by up to 3.1%.

Research limitations/implications

The research data was largely restricted to only one region in Ghana because of the inconsistencies in the data from the other regions. The only climate variable use was temperature because it was proven in the literature that it was the most dominant variable that affects electricity demand, so it was not out of place to use only this variable. The research, however, can be extended to capture the entire regions of the country if sponsorship and accurate data can be obtained.

Practical implications

The government as the policy and law-making authority has to play the most influential role to ensure adaptation at all levels toward the impact of climate change for residential consumers. It is the main responsibility of the government to arrange enough supports to help residential consumers adapt to climate change and try to make consumers self-sufficient by modification of certain behaviors rather than supply dependent. Government bodies need to carefully define their climate adaptation supports and incentive programs to influence residential-level consumption practices and demand management. Here, energy policies and investments need to be more strategic. The most critical problem is to identify the appropriate adaptation policies that favor the most vulnerable sectors such as the residential sector.

Social implications

To evaluate both mitigation and adaptation policies, it is important to estimate the effect of climate change on energy usage around the world. Existing empirical figures, however, are concentrated in Western nations, especially the USA. To predict how electricity usage will shift in the city of Greater Accra, Ghana, the authors used regular household electricity consumption data.

Originality/value

The motivation for this paper and in particular the empirical analysis for Ghana is originality for the literature. This paper demonstrates an adequate understanding of the relevant literature in modern times.

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Article
Publication date: 29 April 2021

Anupam Das and Adian McFarlane

The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica.

Abstract

Purpose

The purpose of this paper is to examine the impact of remittance inflows (remittances) on electricity consumption and electric power losses in Jamaica.

Design/methodology/approach

The authors use annual data from 1976 to 2014 and apply vector error correction modelling, Granger causality testing and impulse response analysis.

Findings

First, the authors find that there is co-integration between remittances and the energy variables, namely electricity consumption and electric power losses. Second, short-run Granger causality exists between the energy variables and remittances. This causality is bidirectional between the energy variables and positive changes in remittances, but it is unidirectional running from the energy variables to negative movements in remittances. Third, the authors find that in the long-run remittances have a negative relationship with electric power losses and a positive relationship with the consumption of electricity.

Practical implications

Findings from this paper will help to elucidate the relationship between electricity consumption, and electric power losses, and remittances.

Social implications

The problem of electric power losses is acute in Jamaica and it is mostly due to theft. At the same time, Jamaica receives significant remittances. Social policy could have a role to encourage the use of remittances to help stem the theft of electricity.

Originality/value

This is the first study that examines the relationships between remittances, electricity consumption and electric power losses.

Details

Journal of Economic Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0144-3585

Keywords

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Article
Publication date: 10 June 2019

Rajesh Sharma and Pradeep Kautish

By disentangling the impact of positive and negative shocks of GDP, FDI and oil consumption on electricity consumption, the purpose of this paper is to investigate whether…

Abstract

Purpose

By disentangling the impact of positive and negative shocks of GDP, FDI and oil consumption on electricity consumption, the purpose of this paper is to investigate whether this bifurcation significantly determines the level of electricity consumption in the short run and long run.

Design/methodology/approach

Using the recently developed nonlinear autoregressive distributed lag (NARDL) bounds approach, the study investigates the changes in the level of electricity consumption over a period of 1980–2015. The inclusion of a dummy variable for the possible structural break makes the electricity demand function more reliable. After checking the stationarity of data series, the study has employed the bounds test, which confirms the existence of the long run stability in the system. Further, using the VECM, the causality among the comprised variables has also been examined.

Findings

The findings confirm that not only the positive shocks but also the negative shocks in GDP have a positive and significant impact on electricity consumption in the long run. Similarly, the increased FDI has widened the scope of electricity consumption in the region, whereas the negative shocks’ impact is found negative in the long run. In comparison to GDP and FDI, the influence of the increased oil consumption on electricity demand is found negative and significant in India, which reveals that electricity acts as a significant substitute for oil consumption in the long run.

Originality/value

To the best of the literature evidences available, none of the studies in the past has examined electricity demand in an NARDL framework. The study may help in estimating the demand for electricity consumption comprehensively, as this approach captures the separate influence of favourable and unfavourable changes while determining the level of electricity consumption. This approach may be crucial for policy makers, especially in an energy importer country, such as India.

Details

International Journal of Social Economics, vol. 46 no. 6
Type: Research Article
ISSN: 0306-8293

Keywords

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