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The Impact of Industrial Energy Efficiency on Economic and Social Indicators

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  • Celani de Macedo, Alessandra
  • Cantore, Nicola
  • Barbier, Laura
  • Matteini, Marco
  • Pasqualetto, Giorgia

Abstract

Inclusive and sustainable industrial development implies environmental friendly industrial growth with positive implications for social targets such as employment generation. One of the most important options available to policymakers for reducing CO2 emissions is industrial energy efficiency, which is particularly relevant for the discussion on green industrialization. Despite this intuitive concept, the economics measurement toolkit still lacks a methodological framework to analyse the extent to which energy efficiency interventions can generate simultaneous economic, environmental and employment-related improvements to boost inclusive and sustainable industrial development. This study fills this gap by introducing an original approach based on input-output tables to estimate the impact of improvements in industrial energy efficiency on value added, employment and energy savings among industries in the Republic of North Macedonia. The results show that triple dividends are possible in terms of inclusive and sustainable industrial development. Whereas a positive impact on employment is found in every scenario, a positive outcome in terms of value added essentially depends on the country’s capacity to produce goods that accommodate firms’ increasing demand from their use of energy cost savings.

Suggested Citation

  • Celani de Macedo, Alessandra & Cantore, Nicola & Barbier, Laura & Matteini, Marco & Pasqualetto, Giorgia, 2020. "The Impact of Industrial Energy Efficiency on Economic and Social Indicators," FACTS: Firms And Cities Towards Sustainability 305185, Fondazione Eni Enrico Mattei (FEEM) > FACTS: Firms And Cities Towards Sustainability.
    • Handle: RePEc:ags:feemff:305185
    DOI: 10.22004/ag.econ.305185
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    Cited by:

    1. Andrius Zuoza & Vaida Pilinkienė, 2021. "Energy Efficiency and Carbon Emission Impact on Competitiveness in the European Energy Intensive Industries," Energies, MDPI, vol. 14(15), pages 1-16, August.
    2. Comincioli, Nicola & Vergalli, Sergio, 2020. "Effects of Carbon Tax on Electricity Price Volatility: Empirical Evidences from the Australian Market," 2030 Agenda 305205, Fondazione Eni Enrico Mattei (FEEM).
    3. Drebot, Oksana & Palianychko, Nina & Vysochanska, Mariya & Sakharnatska, Liudmyla & Gadzalo, Andriy, 2023. "Influence of energy efficiency of forestry enterprises on forestry land use indicators," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(2), June.
    4. Kenneth Kigundu Macharia & Dianah Ngui & John Kamau Gathiaka, 2022. "Effects of Energy Efficiency on Firm Productivity in Kenya’s Manufacturing Sector," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 15(3), pages 1-90, May.
    5. Wieslaw Urban, 2022. "Energy Savings in Production Processes as a Key Component of the Global Energy Problem—The Introduction to the Special Issue of Energies," Energies, MDPI, vol. 15(14), pages 1-4, July.

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    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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