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Article
Publication date: 26 January 2022

Zaekhan, Nachrowi Djalal Nachrowi, Djoni Hartono and Widyono Soetjipto

This study aims to identify and analyse energy intensity in Indonesia’s manufacturing industry based on industrial sub-sector, island region, technology intensity, firm size, type…

Abstract

Purpose

This study aims to identify and analyse energy intensity in Indonesia’s manufacturing industry based on industrial sub-sector, island region, technology intensity, firm size, type of ownership and exporter status to determine which of these characteristics have the highest potential to decrease energy intensity.

Design/methodology/approach

Using firm characteristics data from statistics of large and medium industries in Indonesia, this study decomposed energy consumption of Indonesian firms into economic activity, economic structure and energy intensity for the period 2010–2014 through the logarithmic mean Divisia index (LMDI).

Findings

The results showed the decomposed energy intensity based on the six sub-categories. From the sub-categories, several characteristics which induced the most increases in energy intensity are highlighted. Several industrial sub-sectors were classified as highly energy-consuming, including rubber and plastic products, glass and non-metal mineral products, food, electrical machinery and apparatus, chemical, paper, motor vehicles and trailers and tobacco. Results from other sub-categories indicated that firms with high energy intensity were located in the Java--Bali region, had medium technology intensity and were exporters. Meanwhile, firm size and ownership type sub-categories did not show clear differences in energy intensity.

Practical implications

This study provides more focused policy recommendations for related policymakers and stakeholders to emphasise the most energy-inefficient and energy-intensive firm based on the results from each sub-category and hence policy priorities to reduce energy consumption can be well-targeted.

Originality/value

This study contributes to the field through a more thorough energy intensity analysis based on the classification of Indonesian firm characteristics to provide a more detailed insight on the cause of the ever-increasing energy intensity level in the country.

Details

International Journal of Energy Sector Management, vol. 16 no. 5
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 13 September 2022

Bright Akwasi Gyamfi, Paul Adjei Kwakwa and Tomiwa Sunday Adebayo

The International Energy Agency states that the global energy intensity must reduce by 2.9% yearly before attaining Sustainable Development Goal 7.3 by 2030. However, the European…

Abstract

Purpose

The International Energy Agency states that the global energy intensity must reduce by 2.9% yearly before attaining Sustainable Development Goal 7.3 by 2030. However, the European Union (EU) seeking to attain a climate-neutral EU by 2050 shall require a substantial rate of reducing energy intensity. Consequently, this study aims to investigate how (clean) renewable energy, income, trade openness, technological innovation and nonrenewable energy consumption impact energy intensity for the EU countries.

Design/methodology/approach

The quantile regression, augmented mean group and causality techniques were used for analyses. Panel data for 26 EU nations over the 1990 and 2019 period was used.

Findings

The empirical evidence indicates that the variables have long-run equilibrium relationships. However, the analysis revealed that clean energy and income reduce energy intensity whiles trade, technological innovation and nonrenewable energy consumption increase energy intensity. An interactive term analysis shows that renewable energy and trade interact to reduce further, the negative effect of income on energy intensity. Causality results revealed a feedback connection between energy intensity and clean energy, income, trade liberalization as well as the interaction between income and trade liberalization. A one-way causality was obtained between energy intensity and technological innovation, nonrenewable energy consumption and the interaction between clean energy and income.

Practical implications

The results imply that EU countries stand to gain if more resources are committed to encouraging the production and consumption of cleaner/renewable energy. Advancement in policies that support renewable energy and facilitate green growth will help reduce energy intensity for the region. Trade policies that promote lower energy consumption should be strengthened.

Originality/value

The effect of renewable energy on energy intensity is assessed. The moderating impact of renewable energy and trade openness on the income–energy intensity relationship for the EU countries is examined. Moreover, this study uses the quantile estimation technique to assess the nonlinear effect of the explanatory variables on energy intensity.

Details

International Journal of Energy Sector Management, vol. 17 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 1 March 2021

Jiuli Yin, Qing Ding and Xinghua Fan

Reductions in emissions intensity have been expressed in commitments of many countries’ intended nationally determined contribution. Energy structure adjustment is one of the main…

Abstract

Purpose

Reductions in emissions intensity have been expressed in commitments of many countries’ intended nationally determined contribution. Energy structure adjustment is one of the main approaches to reduce carbon emissions. This paper aims to study the causal relationship between carbon emission intensity and energy consumption structure in China based on path analysis.

Design/methodology/approach

After data collection, this paper performs correlation analysis, regression and path analysis.

Findings

Correlation results display clear collinearity among energy structure variables. Regression finds that coal, oil, natural gas and technology can be used as indicators for carbon intensity while primary electricity has been excluded. Path analysis shows that coal had the largest direct and positive impact on emission intensity. Natural gas had a positive direct and negative indirect effect through its negative relationship with coal on emission intensity. Technology has the largest negative elasticity while all fossil energies are positive. Results indicate a negative effect of energy structure adjustment on China’s national carbon intensity.

Originality/value

Given the major role of China in global climate change mitigation, significant future reductions in China’s CO2 emissions will require transformation toward low-carbon energy systems. Considering the important role in mitigating global climate change, China needs to transition toward a low-carbon energy system to significantly reduce its carbon intensity in the future.

Article
Publication date: 8 March 2022

Ujjaini Mukhopadhyay and Ratnakar Pani

In the backdrop of growing global concern on escalating CO2 emission leading to climate disorder and controversy between economic growth and environment, this study undertakes a…

Abstract

Purpose

In the backdrop of growing global concern on escalating CO2 emission leading to climate disorder and controversy between economic growth and environment, this study undertakes a decomposition analysis of the top 20 emitters of the world during 1992–2016 with two objectives: to identify the relative contribution of the major driving factors in CO2 emission and to comprehend the role and performance of sectoral energy consumption pattern in changing the emission level.

Design/methodology/approach

The paper uses variance analysis method to perform two stage decomposition: first, it decomposes emission into the major driving factors, and, secondly, it also decomposes fossil fuel intensity of different sectors into fuel mix and energy intensity effects, which are new in the literature.

Findings

The results indicate that aggressive pursuit for economic growth, particularly by developing countries, is the major reason behind unprecedented emission growth, with income effect, fossil fuel intensity effect and population effect having substantial roles. Considerable decline in dependence on fossil fuel, coupled with rising emissions, signifies that emission intensity is still to be harnessed. Sectoral decomposition shows that while fossil fuel intensity has declined in residential sector, it has remarkably shot up in industry, transport and commercial sectors. On the other hand, sectoral energy intensity has declined, particularly due to favourable performances of transport and commercial sectors.

Research limitations/implications

The detailed country-wise sectoral analysis identifies the sectors with favourable contribution in curtailing emission and lends a direction to other countries for policy making.

Originality/value

This study contributes by incorporating multi-country sectoral segregation in decomposition analysis. It focuses not only on energy intensity, but on the effect of energy substitution in each sector as well. It identifies the sectors that have lowered their dependence on fossil fuel to highlight that emission can effectively be dealt with through a prudent choice of fuel mix.

Details

Management of Environmental Quality: An International Journal, vol. 33 no. 4
Type: Research Article
ISSN: 1477-7835

Keywords

Article
Publication date: 27 February 2007

M.H. Bala Subrahmanya

How do energy consumption, efficiency and economic performance vary between small enterprises belonging to two different product clusters whose production process and technologies…

1241

Abstract

Purpose

How do energy consumption, efficiency and economic performance vary between small enterprises belonging to two different product clusters whose production process and technologies differ?

Design/methodology/approach

The objectives are analyzed based on empirical data gathered from a field survey of small enterprises with reference to auto ancillaries in Shimoga and brick‐making enterprises in Malur of Karnataka State in India. Simple averages, correlation and multiple‐regression techniques are used for the analysis.

Findings

The study brought out that higher energy intensity results in higher share of energy cost in total variable cost. Energy intensity had a negative relationship with value of output. Energy makes a statistically significant contribution to returns to scale. The classification of small enterprises into two groups based on above average energy intensity and below average energy intensity, and the subsequent regression analysis brought out that energy intensity had a positive influence on returns to scale in auto ancillaries whereas a negative influence on returns to scale in bricks enterprises.

Research limitations/implications

The sample‐size formulation could not be done on a scientific basis due to the absence of comprehensive data on all small enterprises operating in the respective clusters and therefore, the findings may not be generalized.

Practical implications

Industry specific characteristics must be taken into account while introducing “energy efficiency improvement” programmes as a means of enhancing competitiveness in “energy intensive” small enterprises.

Originality/value

The paper illustrates the scope for energy conservation and efficiency improvement in Indian small enterprises.

Details

International Journal of Energy Sector Management, vol. 1 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 13 September 2021

Maman Ali M. Moustapha, Qian Yu and Benjamin Adjei Danqauh

The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the…

Abstract

Purpose

The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the difference-in-difference (DID) and the propensity score matching methods (PSM). Based on the current debates on renewable energy policies (REP) and due to the fact that energy efficiency has been a challenge for ECOWAS member states. The authors set up a framework to assess the EREP effect on energy intensity.

Design/methodology/approach

Using the DID and PSM approaches the paper assesses the effect of EREP on energy intensity. The following three different paths are considered: Path 1 tests the EREP effect on electricity access. Path 2 tests the use of renewable energy sources as a factor to enhance the energy intensity. Path 3 tests whether or not use of renewable energy deployment has the potential to raise the total percentage of primary energy supply. The principle is to investigate if and to what extend the EREP increases the energy intensity.

Findings

The results indicate that EREP has a significantly positive effect on increasing the percentage of energy intensity in ECOWAS member states that has implemented the policy, resulting for a large percentage of the population to electricity access in treated groups. Empirical estimation results largely corroborate the three paths’ hypotheses. The result indicated that the EREP has increased the percentage of electricity access throughout the region.

Originality/value

The paper explores a more appropriate framework to examine the effect of EREP and enriches the literature on the impact of REP by combining a policy evaluation approach (PSM-DID) method. This paper is the first to the knowledge to estimate the EREP effect by using a non-parametric approach. The majority of previous studies have focused on using case studies, exploratory analysis approaches and econometric methods.

Details

International Journal of Energy Sector Management, vol. 16 no. 4
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 28 September 2023

Williams Miller Appau, Elvis Attakora-Amaniampong and Iruka Chijindu Anugwo

To significantly adopt and improve indoor energy efficiency in building infrastructure in developing countries can be a challenging venture. Thus, this study aimed to assess the…

Abstract

Purpose

To significantly adopt and improve indoor energy efficiency in building infrastructure in developing countries can be a challenging venture. Thus, this study aimed to assess the satisfaction of indoor environmental quality and its effect on energy use intensity and efficient among student housing.

Design/methodology/approach

The study is quantitative and hinged on the contrast theory. A survey of 1,078 student residents living in purpose-built student housing was contacted. Using Post-Occupancy Evaluation and Multiple Linear Regression, critical variables such as thermal comfort, visual comfort and indoor air quality and 21 indicators were assessed. Data on annual energy consumption and total square metre of the indoor area were utilised to assess energy use intensity.

Findings

The study found a direct relationship between satisfaction with indoor environmental quality and energy use intensity. The study showed that students were more satisfied with thermal comfort conditions than visual and indoor air quality. Overall, these indicators contributed to 75.9% kWh/m2 minimum and 43.2% kWh/m2 maximum energy use intensity in student housing in Ghana. High occupancy and small useable space in student housing resulted in high energy use intensity.

Practical implications

Inclusions of sustainable designs and installation of smart mechanical systems are feedback to student housing designers. Again, adaptation to retrofitting ideas can facilitate energy efficiency in the current state of student housing in Ghana.

Originality/value

Earlier studies have argued for and against the satisfaction of indoor environmental quality in student housing. However, these studies have neglected to examine the impact on energy use intensity. This is novel because the assessment of energy use intensity in this study has a positive influence on active design incorporation among student housing.

Details

Property Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0263-7472

Keywords

Open Access
Article
Publication date: 6 December 2023

Md. Mahadi Hasan and A.T.M. Adnan

Growing food insecurity is a leading cause of fatalities, particularly in developing nations like Sub-Saharan Africa and Southeast Asia. However, the rising energy consumption and…

Abstract

Purpose

Growing food insecurity is a leading cause of fatalities, particularly in developing nations like Sub-Saharan Africa and Southeast Asia. However, the rising energy consumption and carbon dioxide (CO2) emissions are mostly associated with food production. Balancing the trade-offs between energy intensity and food security remains a top priority for environmentalists. Despite the critical role of the environment in food security, there is a scarcity of substantial studies that explore the statistical connections among food security, CO2 emissions, energy intensity, foreign direct investment (FDI) and per capita income. Therefore, this study aims to provide more precise and consistent estimates of per capita CO2 emissions by considering the interplay of food security and energy intensity within the context of emerging economies.

Design/methodology/approach

To examine the long-term relationships between CO2 emissions, food security, energy efficiency, FDI and economic development in emerging economies, this study employs correlated panel-corrected standard error, regression with Newey–West standard error and regression with Driscoll–Kraay standard error models (XTSCC). The analysis utilizes data spanning from 1980 to 2018 and encompasses 32 emerging economies.

Findings

The study reveals that increasing food security in a developing economy has a substantial positive impact on both CO2 emissions and energy intensity. Each model, on average, demonstrates that a 1 percent improvement in food security results in a 32% increase in CO2 levels. Moreover, the data align with the Environmental Kuznets Curve (EKC) theory, as it indicates a positive correlation between gross domestic product (GDP) in developing nations and CO2 emissions. Finally, all experiments consistently demonstrate a robust correlation between the Food Security Index (FSI), energy intensity level (EIL) and exchange rate (EXR) in developing markets and CO2 emissions. This suggests that these factors significantly contribute to environmental performance in these countries.

Originality/value

This study introduces novelty by employing diverse techniques to uncover the mixed findings regarding the relationship between CO2 emissions and economic expansion. Additionally, it integrates energy intensity and food security into a new model. Moreover, the study contributes to the literature by advocating for a sustainable development goal (SDG)-oriented policy framework that considers all variables influencing economic growth.

Details

Journal of Business and Socio-economic Development, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2635-1374

Keywords

Article
Publication date: 19 July 2019

Salman Haider and Javed Ahmad Bhat

Because of growing energy consumption and increasing absolute CO2 emissions, the recent calibrations about the environmental sustainability across the globe have mandated to…

Abstract

Purpose

Because of growing energy consumption and increasing absolute CO2 emissions, the recent calibrations about the environmental sustainability across the globe have mandated to achieve the minimal energy consumption through employing energy-efficient technology. This study aims to estimate linkage between simple measure of energy efficiency indicator that is reciprocal of energy intensity and total factor productivity (TFP) in case of Indian paper industry for 21 major states. In addition, the study incorporates the other control variables like labour productivity, capital utilization and structure of paper industry to scrutinize their likely impact on energy efficiency performance of the industry.

Design/methodology/approach

To derive the plausible estimates of TFP, the study applies the much celebrated Levinsohn and Petrin (2003) methodology. Using the regional level data for the period 2001-2013, the study employs instrumental variable-generalized method of moments (GMM-IV) technique to examine the nature of relationship among the variables involved in the analysis.

Findings

An elementary examination of energy intensity shows that not all states are equally energy intensive. States like Goa, Rajasthan, Jharkhand and Tamil Nadu are less energy intensive, whereas Uttar Pradesh, Kerala, Chhattisgarh, Assam and Punjab are most energy-intensive states on the basis of their state averages over the whole study period. The results estimated through GMM-IV show that increasing level of TFP is associated with lower level of energy per unit of output. Along this better skills and capacity utilization are also found to have positive impact on energy efficiency performance of industry. However, the potential heterogeneity within the structure of industry itself is found responsible for its higher energy intensity.

Practical implications

States should ensure and undertake substantial investment projects in the research and development of energy-efficient technology and that targeted allocations could be reinforced for more fruitful results. Factors aiming at improving the labour productivity should be given extra emphasis together with capital deepening and widening, needed for energy conservation and environmental sustainability. Given the dependence of structure of paper industry on the multitude of factors like regional inequality, economic growth, industrial structure and the resource endowment together with the issues of fragmented sizes, poor infrastructure and availability and affordability of raw materials etc., states should actively promote the coordination and cooperation among themselves to reap the benefits of technological advancements through technological spill overs. In addition, owing to their respective state autonomies, state governments should set their own energy saving targets by taking into account the respective potentials and opportunities for the different industries. Despite the requirement of energy-efficient innovations, however, the cons of technological advancements and the legal frameworks on the employment structure and distributional status should be taken care of before their adoption and execution.

Originality/value

To the best of our knowledge, this is the first study that empirically examines the linkage between energy efficiency and TFP in case of Indian paper industry. The application of improved methods like Levinsohn and Petrin (2003) to derive the TFP measure and the use of GMM-IV to account for potential econometric problems like that of endogeneity will again add to the novelty of study.

Details

International Journal of Energy Sector Management, vol. 14 no. 1
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 5 April 2022

Nemiraja Jadiyappa and Raveesh Krishnankutty

This study aims to examine the impact of green operation (measured using the energy intensity of its operations) on the value of corporate firms in stock markets. The authors also…

Abstract

Purpose

This study aims to examine the impact of green operation (measured using the energy intensity of its operations) on the value of corporate firms in stock markets. The authors also examine the channel of such an impact and its implication on a firm's financing choices.

Design/methodology/approach

The authors conduct various univariate and multivariate regression analyses on a panel of all non-financial Indian firms listed on the National Stock Exchange from 2010 through 2018. The authors use the sensitivity of investments to the cash flows model to test the financial constraints hypothesis.

Findings

The authors’ analysis shows a positive relationship between energy efficiency (firms that consume a lesser amount of energy per unit of sale) and the value of firms in the stock market. The authors empirically attribute this greater valuation to the lesser volatility of stock returns, measured by the standard deviation of daily stock returns. Finally, the authors observe that investments in energy-efficient firms are less sensitive to their internal cash flows.

Practical implications

The results suggest that less green firms face greater constraints in accessing finance from external sources and, therefore, depend more on internal than external capital to finance their investments. Hence, managers of such firms can ease their financing pressures by making their operations greener.

Originality/value

In this study, the authors examine the implications of green operations on the financing choices of firms. This aspect of going green is important because managers will have enough incentives to invest in green technologies as that would increase their access to external finance and, hence, decrease their financial constraints.

Details

International Journal of Managerial Finance, vol. 18 no. 4
Type: Research Article
ISSN: 1743-9132

Keywords

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