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Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis

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  • Hochman, Gal
  • Timilsina, Govinda R.

Abstract

Improvement in energy efficiency is one of the main options to reduce energy demand and greenhouse gas emissions. However, large-scale deployment of energy-efficient technologies is constrained by several factors. Employing a survey of 509 industrial and commercial firms throughout Ukraine and a generalized ordered logit model, we quantified the economic, behavioral, and institutional barriers that may impede the deployment of energy-efficient technologies. Our analysis shows that behavioral barriers resulted from lack of information, knowledge, and awareness are major impediments to the adoption of energy-efficient technologies in Ukraine, and that financial barriers may further impede investments in these technologies especially for small firms. This suggests that carefully targeted information provisions and energy audits will enhance Ukrainian firms' investments in energy-efficient technologies to save energy consumption, improve productivity, and reduce carbon emissions from the productive sectors.

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  • Hochman, Gal & Timilsina, Govinda R., 2017. "Energy efficiency barriers in commercial and industrial firms in Ukraine: An empirical analysis," Energy Economics, Elsevier, vol. 63(C), pages 22-30.
    • Handle: RePEc:eee:eneeco:v:63:y:2017:i:c:p:22-30
    DOI: 10.1016/j.eneco.2017.01.013
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    3. Löschel, Andreas & Lutz, Benjamin Johannes & Massier, Philipp, 2017. "Credit constraints, energy management practices, and investments in energy saving technologies: German manufacturing in close-up," CAWM Discussion Papers 98, University of Münster, Münster Center for Economic Policy (MEP).
    4. Liao, Nuo & He, Yong, 2018. "Exploring the effects of influencing factors on energy efficiency in industrial sector using cluster analysis and panel regression model," Energy, Elsevier, vol. 158(C), pages 782-795.
    5. Antonella Biscione & Dorothee Boccanfuso & Annunziata de Felice & Francesco Porcelli, 2021. "Barriers to Firms Energy Efficiency in Transition Countries," Working Papers 1014, European Centre of Peace Science, Integration and Cooperation (CESPIC), Catholic University 'Our Lady of Good Counsel'.
    6. Agyarko, Kofi A. & Opoku, Richard & Van Buskirk, Robert, 2020. "Removing barriers and promoting demand-side energy efficiency in households in Sub-Saharan Africa: A case study in Ghana," Energy Policy, Elsevier, vol. 137(C).
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    8. Yajima, Naonari & Arimura, Toshi H., 2022. "Promoting energy efficiency in Japanese manufacturing industry through energy audits: Role of information provision, disclosure, target setting, inspection, reward, and organizational structure," Energy Economics, Elsevier, vol. 114(C).
    9. Antonella Biscione & Annunziata de Felice & Teodoro Gallucci, 2022. "Energy Saving in Transition Economies: Environmental Activities in Manufacturing Firms," Sustainability, MDPI, vol. 14(7), pages 1-17, March.
    10. Haider, Salman & Danish, Mohd Shadab & Sharma, Ruchi, 2019. "Assessing energy efficiency of Indian paper industry and influencing factors: A slack-based firm-level analysis," Energy Economics, Elsevier, vol. 81(C), pages 454-464.
    11. Chang, Kai & Wan, Qiong & Lou, Qichun & Chen, Yili & Wang, Weihong, 2020. "Green fiscal policy and firms’ investment efficiency: New insights into firm-level panel data from the renewable energy industry in China," Renewable Energy, Elsevier, vol. 151(C), pages 589-597.
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    More about this item

    Keywords

    Energy-efficiency; Barriers to energy efficiency; Discrete choice models; Generalized ordered logit model; Ukraine;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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