Energy Conservation Investment Behaviour of Firms: Business as Usual?

Panel: Panel 3: Market Transformation: Innovation, Development and Dissemination

Authors:
Jacco Farla, Dept. of Science, Technology and Society, Utrecht University
Kornelis Blok, Dept. of Science, Technology and Society, Utrecht University

Abstract

To be able to carry out an effective policy to enhance the improvement of energy efficiency in the manufacturing industry, knowledge is required about the behaviour of energy consumers in this sector.
In this paper the developments in two subsectors of the building materials industry are analysed: the cement and the brick manufacturing industry. The analysis starts with a description of the main production steps. This is followed by a historical analysis of the developments of the specific energy consumption, Subsequently an inventory was made of the measures that were available (per subsector) to improve energy efficiency, and whether or not these measures were carried out. These findings were combined with information on parameters like energy prices, energy policy, subsidy possibrlities, economic performance, and the availability of information on energy conservation. In both subsectors, the decrease, in specific energy consumption could be attributed for a large part to the replacement of equipment.

We found that lack of information did not play an important role in preventmg measures to be taken. Also economic barriers, like stringent investment criteria, did not seem to play an important role in preventing measures from being taken. Barriers that were observed related to the long lifetime of equipment in this sector, the fear for decreased product quality, and doubts about the technical feasibility of measures. The effect of historic government incentives to increase energy efficiency seems low. Requiring detailed energy monitoring of production processes may be a means to stimulate energy efficrency improvement.