Barriers to energy efficiency in industrial bottom-up energy demand models--A review
AbstractThe goal of this paper is to review bottom-up models for industrial energy demand with a particular focus on their capability to model barriers to the adoption of energy-efficient technologies. The integration of barriers into the models is an important prerequisite for a more detailed and realistic modeling of policies for energy efficiency. Particularly with the emergence of more and more varying policy instruments, it also becomes crucial for the models to take account of these policies as well as the barriers they address in a more realistic way. Our review revealed that, despite the broadly evident existence of market failures and barriers for energy-efficient technologies, they are only partly and in a rather aggregated form considered in today's bottom-up models. The state-of-the-art bottom-up model is based on an explicit representation of the technology stock and considers the costs of energy efficiency options in detail. But with regard to barriers, most models only make use of an aggregated approach, like an adjusted discount rate. While some models do not even consider technology costs and energy prices, but instead use exogenous technology diffusion rates, other more advanced models took first steps towards considering barriers in more detail. The latter allows differentiation between multiple parameters that influence technology adoption. Still, even in the most advanced models, only a few of the observed barriers are explicitly considered. At the same time, new approaches to considering barriers like uncertainty or the (slow) spread of information are being developed in other disciplines. We conclude the paper by summarizing promising ways to improve representation of barriers in bottom-up models.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Renewable and Sustainable Energy Reviews.
Volume (Year): 15 (2011)
Issue (Month): 6 (August)
Contact details of provider:
Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Schleich, Joachim & Gruber, Edelgard, 2008. "Beyond case studies: Barriers to energy efficiency in commerce and the services sector," Energy Economics, Elsevier, vol. 30(2), pages 449-464, March.
- Peter Russ & Patrick Criqui, 2007. "Post-Kyoto CO2 emission reduction : the soft landing scenario analysed with POLES and other world models," Post-Print halshs-00078489, HAL.
- Pizer, William A. & Popp, David, 2007.
"Endogenizing Technological Change: Matching Empirical Evidence to Modeling Needs,"
dp-07-11, Resources For the Future.
- Pizer, William A. & Popp, David, 2008. "Endogenizing technological change: Matching empirical evidence to modeling needs," Energy Economics, Elsevier, vol. 30(6), pages 2754-2770, November.
- William A. Pizer & David Popp, 2007. "Endogenizing Technological Change: Matching Empirical Evidence to Modeling Needs," NBER Working Papers 13053, National Bureau of Economic Research, Inc.
- van Soest, Daan P., 2005. "The impact of environmental policy instruments on the timing of adoption of energy-saving technologies," Resource and Energy Economics, Elsevier, vol. 27(3), pages 235-247, October.
- Rivers, Nic & Jaccard, Mark, 2006. "Useful models for simulating policies to induce technological change," Energy Policy, Elsevier, vol. 34(15), pages 2038-2047, October.
- Barker, Terry & Ekins, Paul & Foxon, Tim, 2007. "Macroeconomic effects of efficiency policies for energy-intensive industries: The case of the UK Climate Change Agreements, 2000-2010," Energy Economics, Elsevier, vol. 29(4), pages 760-778, July.
- Daan van Soest & Erwin Bulte, 2001. "Does the Energy-Efficiency Paradox Exist? Technological Progress and Uncertainty," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 18(1), pages 101-112, January.
- Hainoun, A. & Seif-Eldin, M.K. & Almoustafa, S., 2006. "Analysis of the Syrian long-term energy and electricity demand projection using the end-use methodology," Energy Policy, Elsevier, vol. 34(14), pages 1958-1970, September.
- Chateau, B. & Lapillonne, B., 1978. "Long-term energy demand forecasting A new approach," Energy Policy, Elsevier, vol. 6(2), pages 140-157, June.
- Geroski, Paul A, 1999.
"Models of Technology Diffusion,"
CEPR Discussion Papers
2146, C.E.P.R. Discussion Papers.
- Zhang, ZhongXiang & Folmer, Henk, 1998. "Economic modelling approaches to cost estimates for the control of carbon dioxide emissions1," Energy Economics, Elsevier, vol. 20(1), pages 101-120, February.
- de Almeida, Edmar Luiz Fagundes, 1998. "Energy efficiency and the limits of market forces: The example of the electric motor market in France," Energy Policy, Elsevier, vol. 26(8), pages 643-653, July.
- Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008.
"Modeling endogenous technological change for climate policy analysis,"
Elsevier, vol. 30(6), pages 2734-2753, November.
- Gillingham, Kenneth T. & Newell, Richard G. & Pizer, William A., 2007. "Modeling Endogenous Technological Change for Climate Policy Analysis," Discussion Papers dp-07-14, Resources For the Future.
- Harris, Jane & Anderson, Jane & Shafron, Walter, 2000. "Investment in energy efficiency: a survey of Australian firms," Energy Policy, Elsevier, vol. 28(12), pages 867-876, October.
- Lutz, Christian & Meyer, Bernd & Nathani, Carsten & Schleich, Joachim, 2005. "Endogenous technological change and emissions: the case of the German steel industry," Energy Policy, Elsevier, vol. 33(9), pages 1143-1154, June.
- Anderson, Soren T. & Newell, Richard G., 2004.
"Information programs for technology adoption: the case of energy-efficiency audits,"
Resource and Energy Economics,
Elsevier, vol. 26(1), pages 27-50, March.
- Newell, Richard & Anderson, Soren, 2002. "Information Programs for Technology Adoption: The Case of Energy-Efficiency Audits," Discussion Papers dp-02-58, Resources For the Future.
- Simon, Herbert A, 1979.
"Rational Decision Making in Business Organizations,"
American Economic Review,
American Economic Association, vol. 69(4), pages 493-513, September.
- Simon, Herbert A., 1978. "Rational Decision-Making in Business Organizations," Nobel Prize in Economics documents 1978-1, Nobel Prize Committee.
- Allan, Grant & Hanley, Nick & McGregor, Peter & Swales, Kim & Turner, Karen, 2007. "The impact of increased efficiency in the industrial use of energy: A computable general equilibrium analysis for the United Kingdom," Energy Economics, Elsevier, vol. 29(4), pages 779-798, July.
- Berglund, Christer & Soderholm, Patrik, 2006. "Modeling technical change in energy system analysis: analyzing the introduction of learning-by-doing in bottom-up energy models," Energy Policy, Elsevier, vol. 34(12), pages 1344-1356, August.
- Murphy, Rose & Rivers, Nic & Jaccard, Mark, 2007. "Hybrid modeling of industrial energy consumption and greenhouse gas emissions with an application to Canada," Energy Economics, Elsevier, vol. 29(4), pages 826-846, July.
- Kainuma, Mikiko & Matsuoka, Yuzuru & Morita, Tsuneyuki, 2000. "The AIM/end-use model and its application to forecast Japanese carbon dioxide emissions," European Journal of Operational Research, Elsevier, vol. 122(2), pages 416-425, April.
- Matsuoka, Yuzuru & Kainuma, Mikiko & Morita, Tsuneyuki, 1995. "Scenario analysis of global warming using the Asian Pacific Integrated Model (AIM)," Energy Policy, Elsevier, vol. 23(4-5), pages 357-371.
- Schleich, Joachim, 2009. "Barriers to energy efficiency: A comparison across the German commercial and services sector," Ecological Economics, Elsevier, vol. 68(7), pages 2150-2159, May.
- de Groot, Henri L. F. & Verhoef, Erik T. & Nijkamp, Peter, 2001.
"Energy saving by firms: decision-making, barriers and policies,"
Elsevier, vol. 23(6), pages 717-740, November.
- Henri L.F.M. de Groot & Erik T. Verhoef & Peter Nijkamp, 1999. "Energy Saving by Firms: Decision-Making, Barriers and Policies," Tinbergen Institute Discussion Papers 99-031/3, Tinbergen Institute.
- Koopmans, Carl C. & te Velde, Dirk Willem, 2001. "Bridging the energy efficiency gap: using bottom-up information in a top-down energy demand model," Energy Economics, Elsevier, vol. 23(1), pages 57-75, January.
- Ma, T. & Grubler, A. & Nakamori, Y., 2009. "Modeling technology adoptions for sustainable development under increasing returns, uncertainty, and heterogeneous agents," European Journal of Operational Research, Elsevier, vol. 195(1), pages 296-306, May.
- Schumacher, Katja & Sands, Ronald D., 2007.
"Where are the industrial technologies in energy-economy models? An innovative CGE approach for steel production in Germany,"
Elsevier, vol. 29(4), pages 799-825, July.
- Katja Schumacher & Ronald D. Sands, 2006. "Where Are the Industrial Technologies in Energy-Economy Models?: An Innovative CGE Approach for Steel Production in Germany," Discussion Papers of DIW Berlin 605, DIW Berlin, German Institute for Economic Research.
- DeCanio, Stephen J, 1998. "The efficiency paradox: bureaucratic and organizational barriers to profitable energy-saving investments," Energy Policy, Elsevier, vol. 26(5), pages 441-454, April.
- Kainuma, Mikiko & Matsuoka, Yuzuru & Morita, Tsuneyuki & Masui, Toshihiko & Takahashi, Kiyoshi, 2004. "Analysis of global warming stabilization scenarios: the Asian-Pacific Integrated Model," Energy Economics, Elsevier, vol. 26(4), pages 709-719, July.
- Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
- Gielen, Dolf & Taylor, Michael, 2007. "Modelling industrial energy use: The IEAs Energy Technology Perspectives," Energy Economics, Elsevier, vol. 29(4), pages 889-912, July.
- Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy paradox and the diffusion of conservation technology," Resource and Energy Economics, Elsevier, vol. 16(2), pages 91-122, May.
- Greening, Lorna A. & Boyd, Gale & Roop, Joseph M., 2007. "Modeling of industrial energy consumption: An introduction and context," Energy Economics, Elsevier, vol. 29(4), pages 599-608, July.
- Oda, Junichiro & Akimoto, Keigo & Sano, Fuminori & Tomoda, Toshimasa, 2007. "Diffusion of energy efficient technologies and CO2 emission reductions in iron and steel sector," Energy Economics, Elsevier, vol. 29(4), pages 868-888, July.
- Wang, Ke & Wang, Can & Lu, Xuedu & Chen, Jining, 2007. "Scenario analysis on CO2 emissions reduction potential in China's iron and steel industry," Energy Policy, Elsevier, vol. 35(4), pages 2320-2335, April.
- Gielen, Dolf & Moriguchi, Yuichi, 2002. "CO2 in the iron and steel industry: an analysis of Japanese emission reduction potentials," Energy Policy, Elsevier, vol. 30(10), pages 849-863, August.
- Rohdin, Patrik & Thollander, Patrik & Solding, Petter, 2007. "Barriers to and drivers for energy efficiency in the Swedish foundry industry," Energy Policy, Elsevier, vol. 35(1), pages 672-677, January.
- Worrell, Ernst & Laitner, John A & Ruth, Michael & Finman, Hodayah, 2003. "Productivity benefits of industrial energy efficiency measures," Energy, Elsevier, vol. 28(11), pages 1081-1098.
- Jan Velthuijsen, 1993. "Incentives for investment in energy efficiency: an econometric evaluation and policy implications," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 3(2), pages 153-169, April.
- Yi-Ming Wei & Gang Wu & Ying Fan & Lan-Cui Liu, 2006. "Progress in energy complex system modelling and analysis," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 25(1/2), pages 109-128.
- Russ, Peter & Criqui, Patrick, 2007. "Post-Kyoto CO2 emission reduction: The soft landing scenario analysed with POLES and other world models," Energy Policy, Elsevier, vol. 35(2), pages 786-796, February.
- Worrell, Ernst & Biermans, Gijs, 2005. "Move over! Stock turnover, retrofit and industrial energy efficiency," Energy Policy, Elsevier, vol. 33(7), pages 949-962, May.
- Lapillonne, B. & Chateau, B., 1981. "The medee models for long term energy demand forecasting," Socio-Economic Planning Sciences, Elsevier, vol. 15(2), pages 53-58.
- Broeren, M.L.M. & Saygin, D. & Patel, M.K., 2014. "Forecasting global developments in the basic chemical industry for environmental policy analysis," Energy Policy, Elsevier, vol. 64(C), pages 273-287.
- Brunke, Jean-Christian & Blesl, Markus, 2014. "A plant-specific bottom-up approach for assessing the cost-effective energy conservation potential and its ability to compensate rising energy-related costs in the German iron and steel industry," Energy Policy, Elsevier, vol. 67(C), pages 431-446.
- Abeelen, Christiaan & Harmsen, Robert & Worrell, Ernst, 2013. "Implementation of energy efficiency projects by Dutch industry," Energy Policy, Elsevier, vol. 63(C), pages 408-418.
If references are entirely missing, you can add them using this form.