IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v16y2023i8p3498-d1125738.html
   My bibliography  Save this article

Digital Management of Resource Efficiency of Fuel and Energy Companies in a Circular Economy

Author

Listed:
  • Larisa Vazhenina

    (Department of Economics and Organization of Production, Industrial University of Tyumen, Tyumen 625001, Russia)

  • Elena Magaril

    (Department of Environmental Economics, Ural Federal University, Mira Str. 19, Ekaterinburg 620002, Russia)

  • Igor Mayburov

    (Department of Financial and Tax Management, Ural Federal University, Mira Str. 19, Ekaterinburg 620002, Russia)

Abstract

High-quality managerial decision-making is crucial for improving the resource efficiency of production companies in the context of digitalization. Currently, the use of modern methods and tools to manage the consumption and supply of resources of companies should consider the principles of a circular economy. This study focused on the development of a mechanism to manage resource efficiency in the fuel and energy sector. It used the methodological tools developed by the authors, including a comprehensive integral assessment of resource efficiency and a practice-oriented research methodology adapted for fuel and energy enterprises. Having analyzed the existing state of resource consumption, the authors discovered a disparity of indicators, methods and means in the applied assessment of the accounting, control and expenditure of energy resources. Using the analytic hierarchy process as a foundation, the authors applied a technique for identifying inefficient production processes at the fuel and energy enterprises level as a case study. With the proposed technique, the main areas of the inefficient use of resources were identified. They include the organization of accounting, control and rationing of resource consumption, supplying the resources to production, and measures to improve resource conservation. These areas were ranked by importance and priority. The calculations determined the most resource-intensive process—“Operation of equipment and technologies”. On this basis, the authors developed a methodology for resource efficiency management, including a number of digital technologies and tools. As a result of testing the developed mechanism in an oil and gas company based on the principles of a circular economy, the authors found reserves of the inefficient use of energy resources and searched for the best option for the development of an oil and gas company. Moreover, the proposed approach enabled the authors to determine the balanced growth of the company’s resource efficiency, develop managerial decisions for the its long-term development, and conduct its environmental and economic assessment.

Suggested Citation

  • Larisa Vazhenina & Elena Magaril & Igor Mayburov, 2023. "Digital Management of Resource Efficiency of Fuel and Energy Companies in a Circular Economy," Energies, MDPI, vol. 16(8), pages 1-21, April.
  • Handle: RePEc:gam:jeners:v:16:y:2023:i:8:p:3498-:d:1125738
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/16/8/3498/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/1996-1073/16/8/3498/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Rawat, Atul & Garg, Chandra Prakash, 2021. "Assessment of the barriers of natural gas market development and implementation: A case of developing country," Energy Policy, Elsevier, vol. 152(C).
    2. Jebaraj, S. & Iniyan, S., 2006. "A review of energy models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(4), pages 281-311, August.
    3. Ma, Shuaiyin & Ding, Wei & Liu, Yang & Ren, Shan & Yang, Haidong, 2022. "Digital twin and big data-driven sustainable smart manufacturing based on information management systems for energy-intensive industries," Applied Energy, Elsevier, vol. 326(C).
    4. Alessio Franconi & Fabrizio Ceschin & David Peck, 2022. "Structuring Circular Objectives and Design Strategies for the Circular Economy: A Multi-Hierarchical Theoretical Framework," Sustainability, MDPI, vol. 14(15), pages 1-26, July.
    5. Duch-Brown, Néstor & Rossetti, Fiammetta, 2020. "Digital platforms across the European regional energy markets," Energy Policy, Elsevier, vol. 144(C).
    6. Greening, Lorna A. & Bernow, Steve, 2004. "Design of coordinated energy and environmental policies: use of multi-criteria decision-making," Energy Policy, Elsevier, vol. 32(6), pages 721-735, April.
    7. Yu, Huaying & Wei, Wei & Li, Jinhe & Li, Ying, 2022. "The impact of green digital finance on energy resources and climate change mitigation in carbon neutrality: Case of 60 economies," Resources Policy, Elsevier, vol. 79(C).
    8. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    9. Ni, Zehua & Yang, Jingyi & Razzaq, Asif, 2022. "How do natural resources, digitalization, and institutional governance contribute to ecological sustainability through load capacity factors in highly resource-consuming economies?," Resources Policy, Elsevier, vol. 79(C).
    10. Alonso-Fradejas, Alberto, 2021. "The resource property question in climate stewardship and sustainability transitions," Land Use Policy, Elsevier, vol. 108(C).
    11. Zhu, Minglei & Huang, Haiyan & Ma, Weiwen, 2023. "Transformation of natural resource use: Moving towards sustainability through ICT-based improvements in green total factor energy efficiency," Resources Policy, Elsevier, vol. 80(C).
    12. Upadhyay, Arvind & Laing, Tim & Kumar, Vikas & Dora, Manoj, 2021. "Exploring barriers and drivers to the implementation of circular economy practices in the mining industry," Resources Policy, Elsevier, vol. 72(C).
    13. Soni, Vivek & Gnekpe, Christian & Roux, Mélanie & Anand, Rashmi & Vann Yaroson, Emilia & Kumar Banwet, Devinder, 2023. "Adaptive distributed leadership and circular economy adoption by emerging SMEs," Journal of Business Research, Elsevier, vol. 156(C).
    14. Pasqualina Sacco & Christian Vinante & Yuri Borgianni & Guido Orzes, 2021. "Circular Economy at the Firm Level: A New Tool for Assessing Maturity and Circularity," Sustainability, MDPI, vol. 13(9), pages 1-17, May.
    15. Adams, Philip D. & Parmenter, Brian R., 2013. "Computable General Equilibrium Modeling of Environmental Issues in Australia," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 553-657, Elsevier.
    16. Chien, FengSheng & Chau, Ka Yin & Sadiq, Muhammad, 2023. "Impact of climate mitigation technology and natural resource management on climate change in China," Resources Policy, Elsevier, vol. 81(C).
    17. Larisa Vazhenina & Elena Magaril & Igor Mayburov, 2022. "Resource Conservation as the Main Factor in Increasing the Resource Efficiency of Russian Gas Companies," Resources, MDPI, vol. 11(12), pages 1-14, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Włodarczyk, Aneta & Szczepańska-Woszczyna, Katarzyna & Urbański, Mariusz, 2024. "Carbon and financial performance nexus of the heavily polluting companies in the context of resource management during COVID-19 period," Resources Policy, Elsevier, vol. 89(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Larisa Vazhenina & Elena Magaril & Igor Mayburov, 2022. "Resource Conservation as the Main Factor in Increasing the Resource Efficiency of Russian Gas Companies," Resources, MDPI, vol. 11(12), pages 1-14, December.
    2. Vladimir Zybatov, 2018. "Strategic Planning of Energy-Efficient Development of a Region of the Russian Federation," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 941-954.
    3. Gilbert Silvius & Aydan Ismayilova & Vicente Sales-Vivó & Micol Costi, 2021. "Exploring Barriers for Circularity in the EU Furniture Industry," Sustainability, MDPI, vol. 13(19), pages 1-25, October.
    4. Patlitzianas, Konstantinos D. & Psarras, John, 2007. "Formulating a modern energy companies' environment in the EU accession member states through a decision support methodology," Energy Policy, Elsevier, vol. 35(4), pages 2231-2238, April.
    5. Patlitzianas, Konstantinos D. & Pappa, Anna & Psarras, John, 2008. "An information decision support system towards the formulation of a modern energy companies' environment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 12(3), pages 790-806, April.
    6. Osei, Vivian & Bai, Chunguang & Asante-Darko, Disraeli & Quayson, Matthew, 2023. "Evaluating the barriers and drivers of adopting circular economy for improving sustainability in the mining industry," Resources Policy, Elsevier, vol. 86(PB).
    7. She, Weijun & Mabrouk, Fatma, 2023. "Impact of natural resources and globalization on green economic recovery: Role of FDI and green innovations in BRICS economies," Resources Policy, Elsevier, vol. 82(C).
    8. Gedam, Vidyadhar V. & Raut, Rakesh D. & Lopes de Sousa Jabbour, Ana Beatriz & Agrawal, Nishant, 2021. "Moving the circular economy forward in the mining industry: Challenges to closed-loop in an emerging economy," Resources Policy, Elsevier, vol. 74(C).
    9. Nudurupati, Sai Sudhakar & Budhwar, Pawan & Pappu, Raja Phani & Chowdhury, Soumyadeb & Kondala, Mukesh & Chakraborty, Ayon & Ghosh, Sadhan Kumar, 2022. "Transforming sustainability of Indian small and medium-sized enterprises through circular economy adoption," Journal of Business Research, Elsevier, vol. 149(C), pages 250-269.
    10. Mirakyan, Atom & De Guio, Roland, 2013. "Integrated energy planning in cities and territories: A review of methods and tools," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 289-297.
    11. Bruno Domenech & Laia Ferrer‐Martí & Rafael Pastor, 2019. "Comparison of various approaches to design wind‐PV rural electrification projects in remote areas of developing countries," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 8(3), May.
    12. Moritz Böhmecke‐Schwafert & Marie Wehinger & Robin Teigland, 2022. "Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3786-3801, December.
    13. Densing, M. & Panos, E. & Hirschberg, S., 2016. "Meta-analysis of energy scenario studies: Example of electricity scenarios for Switzerland," Energy, Elsevier, vol. 109(C), pages 998-1015.
    14. V.V. Gedam & R.D. Raut & Ana Beatriz Lopes de Sousa Jabbour & N. Agrawal, 2021. "Moving the Circular Economy Forward in the Mining Industry: Challenges to Closed-Loop in an Emerging Economy," Post-Print hal-04275964, HAL.
    15. Després, Jacques & Hadjsaid, Nouredine & Criqui, Patrick & Noirot, Isabelle, 2015. "Modelling the impacts of variable renewable sources on the power sector: Reconsidering the typology of energy modelling tools," Energy, Elsevier, vol. 80(C), pages 486-495.
    16. Rohit Agrawal & Vishal A. Wankhede & Anil Kumar & Sunil Luthra, 2021. "Analysing the roadblocks of circular economy adoption in the automobile sector: Reducing waste and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1051-1066, February.
    17. Kostevšek, Anja & Klemeš, Jiří Jaromír & Varbanov, Petar Sabev & Papa, Gregor & Petek, Janez, 2016. "The concept of an ecosystem model to support the transformation to sustainable energy systems," Applied Energy, Elsevier, vol. 184(C), pages 1460-1469.
    18. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    19. Nathalie Spittler & Ganna Gladkykh & Arnaud Diemer & Brynhildur Davidsdottir, 2019. "Understanding the Current Energy Paradigm and Energy System Models for More Sustainable Energy System Development," Post-Print hal-02127724, HAL.
    20. Tang, Yunfeng & Zhang, Xuan & Lu, Shibao & Taghizadeh-Hesary, Farhad, 2023. "Digital finance and air pollution in China: Evolution characteristics, impact mechanism and regional differences," Resources Policy, Elsevier, vol. 86(PA).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jeners:v:16:y:2023:i:8:p:3498-:d:1125738. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.