scholarly journals Barriers to and Drivers of Energy Management in Swedish SMEs

Energies ◽  
2021 ◽  
Vol 14 (21) ◽  
pp. 6925
Author(s):  
Noor Jalo ◽  
Ida Johansson ◽  
Mariana Andrei ◽  
Therese Nehler ◽  
Patrik Thollander
Keyword(s):  
Energy Efficiency ◽  
Energy Management ◽  
Energy Use ◽  
Driving Forces ◽  
Optimal Level ◽  
Paper Mills ◽  
Energy Efficiency Gap ◽  
Efficiency Measures ◽  
Building Program ◽  
Efficiency Gap

The energy efficiency gap is known as the difference between optimal level of energy efficiency and the actual level of achieved energy efficiency. Energy management has proven to further close the energy efficiency gap. Energy management may differ depending on whether it concerns a large, energy-intensive company or small and medium-sized enterprises (SMEs). SMEs are of high interest since they form a large share of the economy today. For SMEs, a lighter form of energy management, in the form of energy efficiency network participation, has proven to deliver sound energy efficiency impact, while for larger, energy-intensive firms, a certified energy management system may be more suitable. However, various barriers inhibit adoption of energy efficiency measures. While there is an array of research on barriers to and driving forces for energy efficiency in general, research on barriers to, and driving forces for, energy management is rare, one exception being a study of energy-intensive pulp and paper mills. This holds even more so for industrial SMEs. This paper aims to identify the barriers to, and drivers for, energy management in manufacturing SMEs. Results of this explorative study show that the top four barriers to energy management are lack of time/other priorities, non-energy-related working tasks are prioritized higher, slim organization, and lack of internal expert competences, i.e., mainly organizational barriers. The top four drivers for energy management are to reduce production waste, participation in energy efficiency networks, cost reduction from lower energy use, and commitment from top management. Furthermore, results show that energy management among the studied SMEs seems to not be as mature, even though the companies participated in an energy management capacity building program in the form of energy efficiency networks, which, in turn, shows a still largely untapped potential in the societal aim to reduce the energy efficiency and management gaps. The main contribution of this paper is a first novel attempt to explore barriers to, and drivers for, energy management among SMEs.

Analyzing the “energy-efficiency gap”

2017 ◽  
Vol 10 (2) ◽  
pp. 66-88 ◽  
Author(s):  
Kanupriya Bhardwaj ◽  
Eshita Gupta
Keyword(s):  
Energy Efficiency ◽  
Negative Impact ◽  
High Income ◽  
Primary Data ◽  
Content Type ◽  
Household Level ◽  
Energy Efficiency Measures ◽  
Energy Efficiency Gap ◽  
Efficiency Measures ◽  
Efficiency Gap

Purpose The key purpose of this paper is to quantify the size of the energy-efficiency gap (EEG) for air conditioners at the household level in Delhi. Most of the studies in the EEG tradition broadly define EEG as the difference between the actual and optimal level of energy efficiency. The optimal level of energy efficiency is defined at the societal level (that weigh social costs against social benefits) and the private level (that weigh private costs against private benefits). Design/methodology/approach The authors base the empirical results in this study on the basis of the primary data collected through in-person interviews of the high-income urban households in Delhi in 2014-2015. The sample of 101 households was collected through purposive random sampling. The survey data include information on type and number of AC possessed, hours of operations, socioeconomic characteristics and awareness and habits of households. Findings Using primary data of 101 high-income urban household, the paper finds that average EEG is about 10 per cent of total electricity demand of ACs at the household level. The maximum current saving potential measured as a difference between hypothetical energy consumption, if everyone adopts five star ACs, and actual energy consumption is estimated about 14 per cent of the total electricity demand of ACs. Results from the ordinary least squares regressions demonstrate that individual’s habits, attitude, awareness of energy-efficiency measures and perceptions significantly determine the size of the EEG. Among other things, authors’ empirical analysis shows that information can play a central role in guiding investment in energy-efficient technologies. From the analysis of improving access to understandable information about cost savings, payback period and emission reduction, it is found that full information leads to the significant reduction in the size of the expected private energy-efficiency gap from 10 to 2.98 per cent at the household level. Research limitations/implications This paper tests the significance of non-economic and non-social factors in determining the size of the EEG. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households. Originality/value In this study, authors try to estimate the size of the EEG of ACs for the high-income urban households in Delhi. The private energy-efficiency gap estimated at 10 per cent of the household demand for ACs indicates existing saving opportunity for the private households. It is found that provision of comprehensive information about cost savings, payback period and emission reduction reduces the size of the EEG significantly from 10 to 2.72 per cent at the private level. This highlights the existence of limited and incomplete information in the market about the possible costs and benefits of energy-efficiency investments. This paper tests the significance of non-economic and non-social factors in determining the size of the energy-efficiency gap. Apart from socioeconomic factors such as income, occupation and education, individual’s energy-conserving habits and attitudes, awareness of energy-efficiency measures and perceptions are other important factors found to have a significant negative impact on the size of the EEG. This is particularly important for the designing of information programs by policymakers for promoting energy-efficiency choices in view of the change that is required in the behavior and attitudes of the households.

scholarly journals What energy management practice can learn from research on energy culture?

2018 ◽  
Vol 9 (4) ◽  
pp. 515-551 ◽  
Author(s):  
Jan Niklas Rotzek ◽  
Christoph Scope ◽  
Edeltraud Günther
Keyword(s):  
Energy Efficiency ◽  
Energy Management ◽  
Management Practice ◽  
Content Type ◽  
Cultural Aspects ◽  
Energy Efficiency Gap ◽  
Starting Point ◽  
Energy Behavior ◽  
Industrial Energy ◽  
Efficiency Gap

Purpose This investigation aims to reframe the sizeable literature on barriers and drivers for energy efficiency measures (EEMs) and the phenomenon of the energy efficiency gap. The authors identify a gap between academic methods and industrial needs, as well as a neglect of the cultural dimension, despite its considerable impact. On the basis of this insight, the purpose of this paper is to integrate all of the various influences on industrial energy behavior previously identified in the literature in a refined energy cultures framework. Design/methodology/approach This paper includes a systematic literature review of research in the field of energy management, energy efficiency and cultural aspects within barriers and drivers of energy behavior. The authors select and refine an existing energy cultures framework for the industrial context. To meet industrial needs, the authors applied an ontology mapping of its core elements onto an international standard common for industrial energy management practice. Findings First, the authors present a refined framework for industrial energy cultures incorporating past barriers and drivers as factors. The framework enables an evaluation of attitude and behavioral aspects, underlying technologies, organizational culture and actions related to energy as a system of interdependencies. Second, the factors are ranked on the basis of the number of appearances and empirical metadata. Economic aspects such as “purchase, installment and hidden costs”, “general investment and risk behavior” and “regulatory conditions” are the highest ranked factors, but “existing knowledge about EEM”, “hierarchy approach: top down” and “environmental concerns” follow closely and represent cultural aspects, which are still underrated. Third, while illustrating a successful mapping onto a standardized process of continuous improvement, the authors also argue for heightened academia–practice efforts. Practical implications Reframing the energy efficiency gap as a problem of what aspirations play a role, what technology is chosen and how technologies are used should increase the level of implementation of EEMs in the real business world. Introducing the refined energy cultures framework serves as a starting point for future transdisciplinary collaboration between academia and practice. Social implications Targeting the energy efficiency gap is an essential part of the sustainable development goals. The refined energy cultures framework allows for a better understanding of the industrial energy behaviors that are responsible for a significant share of a company’s success. The introduction of energy cultures serves as a starting point for future scholarly research within sustainability management accounting. Originality/value The investigation combines existing research streams, their concepts and their results about cultural aspects related to energy efficiency for both academics and practitioners. This review is the first to capture all of the various factors analyzed in academic literature using the energy cultures framework as a basis. The authors add to the theoretical development of that framework with its application to the industrial context. This is identified as a gap. Its refinement helps to holistically understand barriers and drivers of industrial EEMs to support its practical implementation.

scholarly journals Energy Efficiency gap and the barrier models in France

2019 ◽  
Vol 1 (1) ◽  
pp. 14-16
Author(s):  
Harishkumar ◽  
Maheshkumar
Keyword(s):  
Energy Efficiency ◽  
Energy Management ◽  
Large Scale ◽  
Third Party ◽  
Small Scale ◽  
Motivating Factors ◽  
Energy Audit ◽  
Energy Efficiency Gap ◽  
Management Technology ◽  
Efficiency Gap

In this article, attempt has been made to identify the energy efficiency gap in SME (Small Scale Enterprises) and LME (Large Scale Enterprises) in France and the various models involved in overcoming this barrier. These models involve implementing several techniques like Energy Audit or contracting energy management to a third-party organization. This paper also discusses the motivating factors behind top-level management for implementing energy efficient practices in an energy intensive organization. Finally, this article also discusses the importance of energy management technology and the use of implementing them in real world.

scholarly journals Assessing the Energy-Efficiency Gap

2017 ◽  
Vol 55 (4) ◽  
pp. 1486-1525 ◽  
Author(s):  
Todd D. Gerarden ◽  
Richard G. Newell ◽  
Robert N. Stavins
Keyword(s):  
Energy Efficiency ◽  
Energy Efficient ◽  
Measurement Errors ◽  
Energy Use ◽  
Relevant Literature ◽  
Academic Research ◽  
Future Research ◽  
Market Failures ◽  
Energy Efficiency Gap ◽  
Efficiency Gap

Energy-efficient technologies offer considerable promise for reducing the financial costs and environmental damages associated with energy use, but it has long been observed that these technologies may not be adopted by individuals and firms to the degree that might be justified, even on a purely financial basis. We survey the relevant literature on this “energy-efficiency gap” by presenting two complementary frameworks. First, we divide potential explanations for the energy-efficiency gap into three categories: market failures, behavioral explanations, and model and measurement errors. Second, we organize previous research in terms of the fundamental elements of cost-minimizing energy-efficiency decisions. This provides a decomposition that organizes thinking around four questions. First, are product offerings and pricing economically efficient? Second, are energy operating costs inefficiently priced and/or understood? Third, are product choices cost minimizing in present value terms? Fourth, do other costs inhibit more energy-efficient decisions? We synthesize academic research on these questions, with an emphasis on recent empirical findings, and offer suggestions for future research. (JEL D24, D82, L94, L98, O33, Q41, Q48)

scholarly journals Deconstructing the Energy-Efficiency Gap: Conceptual Frameworks and Evidence

2015 ◽  
Vol 105 (5) ◽  
pp. 183-186 ◽  
Author(s):  
Todd Gerarden ◽  
Richard G. Newell ◽  
Robert N. Stavins
Keyword(s):  
Energy Efficiency ◽  
Energy Efficient ◽  
Measurement Errors ◽  
Energy Use ◽  
Market Failures ◽  
Conceptual Frameworks ◽  
Energy Efficiency Gap ◽  
Financial Costs ◽  
Environmental Damages ◽  
Efficiency Gap

Energy-efficient technologies offer considerable promise for reducing the financial costs and environmental damages associated with energy use, but these technologies appear not to be adopted to the degree that appears justified, even on a purely private basis. We present two complementary frameworks for understanding this so-called “energy paradox” or “energy efficiency gap.” First, we build upon previous literature by dividing potential explanations for the energy efficiency gap into three categories: market failures, behavioral anomalies, and model and measurement errors. Second, we examine the elements of cost-minimizing energy efficiency decisions, the typical benchmark used in assessing the gap's magnitude.

scholarly journals Limited Attention and the Residential Energy Efficiency Gap

2015 ◽  
Vol 105 (5) ◽  
pp. 192-195 ◽  
Author(s):  
Karen Palmer ◽  
Margaret Walls
Keyword(s):  
Energy Efficiency ◽  
Energy Use ◽  
Residential Buildings ◽  
Limited Attention ◽  
Residential Energy ◽  
Factors Affecting ◽  
Energy Efficiency Gap ◽  
Residential Energy Efficiency ◽  
Energy Audits ◽  
Efficiency Gap

Inattention may be an important contributor to the energy efficiency gap and may be particularly acute in residential buildings where many different features will determine a home's energy use. Energy audits can provide information on how to reduce energy loss in a home, but the use of audits is rare. We use data from a national survey of 1700 homeowners to study the factors affecting a home owner's choice to have an audit. We create an index of energy inattention for our survey respondents. This index and two additional behavioral factors prove to be important determinants of the audit choice.

scholarly journals Is There an Energy Efficiency Gap?

2012 ◽  
Vol 26 (1) ◽  
pp. 3-28 ◽  
Author(s):  
Hunt Allcott ◽  
Michael Greenstone
Keyword(s):  
Energy Efficiency ◽  
Energy Use ◽  
The United States ◽  
Negative Externalities ◽  
Welfare Gains ◽  
Conservation Policies ◽  
Energy Efficiency Gap ◽  
The Subject ◽  
Efficiency Gap ◽  
Central Economic

Many analysts of the energy industry have long believed that energy efficiency offers an enormous “win-win” opportunity: through aggressive energy conservation policies, we can both save money and reduce negative externalities associated with energy use. In 1979, Daniel Yergin and the Harvard Business School Energy Project estimated that the United States could consume 30 or 40 percent less energy without reducing welfare. The central economic question around energy efficiency is whether there are investment inefficiencies that a policy could correct. First, we examine choices made by consumers and firms, testing whether they fail to make investments in energy efficiency that would increase utility or profits. Second, we focus on specific types of investment inefficiencies, testing for evidence consistent with each. Three key conclusions arise: First, the evidence presented in the long literature on the subject frequently does not meet modern standards for credibility. Second, when one tallies up the available empirical evidence from different contexts, it is difficult to substantiate claims of a pervasive Energy Efficiency Gap. Third, it is crucial that policies be targeted. Welfare gains will be larger from a policy that preferentially affects the decisions of those consumers subject to investment inefficiencies.

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