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Return on Investment from Industrial Energy Efficiency: Evidence from Developing Countries

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Author Info

  • Ludovico Alcorta

    (United Nations Industrial Development Organization)

  • Morgan Bazilian

    (United Nations Industrial Development Organization)

  • Giuseppe De Simone

    (United Nations Industrial Development Organization)

  • Ascha Pedersen

    (United Nations Industrial Development Organization)

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    Abstract

    Energy efficiency is a foundation of any good energy policy. The economic, security, and environmental benefits of energy efficiency have been recognized for decades. We explore energy efficiency policy insights derived from survey work in developing countries in 119 projects across nine manufacturing sub-sectors. The methodology utilises financial return calculations to highlight gaps and opportunities for meeting the potential of energy efficiency projects in the manufacturing sector. We find a generally very high level of internal rates of return at a project level - with payback periods ranging from 0.9 to 2.9 years; but note that these metrics do not always appropriately influence corporate decision-making for a number of well-understood reasons.

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    Bibliographic Info

    Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2012.35.

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    Date of creation: May 2012
    Date of revision:
    Handle: RePEc:fem:femwpa:2012.35

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    Keywords: Energy Efficiency; Energy Investment; Energy And Development; Industrial Development;

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