Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness

The manufacturing industry in Europe is currently enfacing one of its greatest challenges due to the emission reductions needed to reach carbon neutrality by the middle of this century. The European Union’s Energy Efficiency Directive and Green Deal will force manufacturing industries to significant...

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Autores principales:	Dolge Kristiāna, Āzis Reinis, Lund Peter D., Blumberga Dagnija
Formato:	article
Lenguaje:	EN
Publicado:	Sciendo 2021
Materias:	energy efficiency energy policy decomposition analysis lmdi manufacturing industry Renewable energy sources TJ807-830
Acceso en línea:	https://doaj.org/article/84f748efa7204610bd82d0bdaed08559
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spelling	oai:doaj.org-article:84f748efa7204610bd82d0bdaed085592021-12-05T14:11:10ZImportance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness2255-883710.2478/rtuect-2021-0022https://doaj.org/article/84f748efa7204610bd82d0bdaed085592021-01-01T00:00:00Zhttps://doi.org/10.2478/rtuect-2021-0022https://doaj.org/toc/2255-8837The manufacturing industry in Europe is currently enfacing one of its greatest challenges due to the emission reductions needed to reach carbon neutrality by the middle of this century. The European Union’s Energy Efficiency Directive and Green Deal will force manufacturing industries to significantly reduce their present energy consumption, but at the same time sustain their competitiveness globally. Here we use the Latvian manufacturing industry as a case to analyse how different macro-level factors have affected its energy use and how the industrial energy efficiency has progressed during the last decade. We apply the Log-Mean Divisia index decomposition method to decompose the energy use in the manufacturing subsectors over the period of the past ten years from 2010 to 2019. The findings unravel the key driving factors of industrial energy consumption, which could serve as a valuable basis for effective energy efficiency policymaking in the future. The results show that energy consumption trends differed across industrial subsectors and the effect of industrial energy efficiency improvements was more pronounced in the period following the entry into force of Energy Efficiency Law in Latvia. Significant increases in energy consumption are observed in the two largest Latvian manufacturing subsectors, such as the non-metallic minerals production sector and the wood processing sector, where the current pace of energy efficiency improvements cannot compensate for the effect of increasing industrial activity, which increases overall industrial energy consumption. The results suggest that the Latvian manufacturing industry is at the crossroads of the sustainability dilemma between economic gains and energy saving targets.Dolge KristiānaĀzis ReinisLund Peter D.Blumberga DagnijaSciendoarticleenergy efficiencyenergy policydecomposition analysislmdimanufacturing industryRenewable energy sourcesTJ807-830ENEnvironmental and Climate Technologies, Vol 25, Iss 1, Pp 306-317 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	energy efficiency energy policy decomposition analysis lmdi manufacturing industry Renewable energy sources TJ807-830
spellingShingle	energy efficiency energy policy decomposition analysis lmdi manufacturing industry Renewable energy sources TJ807-830 Dolge Kristiāna Āzis Reinis Lund Peter D. Blumberga Dagnija Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
description	The manufacturing industry in Europe is currently enfacing one of its greatest challenges due to the emission reductions needed to reach carbon neutrality by the middle of this century. The European Union’s Energy Efficiency Directive and Green Deal will force manufacturing industries to significantly reduce their present energy consumption, but at the same time sustain their competitiveness globally. Here we use the Latvian manufacturing industry as a case to analyse how different macro-level factors have affected its energy use and how the industrial energy efficiency has progressed during the last decade. We apply the Log-Mean Divisia index decomposition method to decompose the energy use in the manufacturing subsectors over the period of the past ten years from 2010 to 2019. The findings unravel the key driving factors of industrial energy consumption, which could serve as a valuable basis for effective energy efficiency policymaking in the future. The results show that energy consumption trends differed across industrial subsectors and the effect of industrial energy efficiency improvements was more pronounced in the period following the entry into force of Energy Efficiency Law in Latvia. Significant increases in energy consumption are observed in the two largest Latvian manufacturing subsectors, such as the non-metallic minerals production sector and the wood processing sector, where the current pace of energy efficiency improvements cannot compensate for the effect of increasing industrial activity, which increases overall industrial energy consumption. The results suggest that the Latvian manufacturing industry is at the crossroads of the sustainability dilemma between economic gains and energy saving targets.
format	article
author	Dolge Kristiāna Āzis Reinis Lund Peter D. Blumberga Dagnija
author_facet	Dolge Kristiāna Āzis Reinis Lund Peter D. Blumberga Dagnija
author_sort	Dolge Kristiāna
title	Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
title_short	Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
title_full	Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
title_fullStr	Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
title_full_unstemmed	Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness
title_sort	importance of energy efficiency in manufacturing industries for climate and competitiveness
publisher	Sciendo
publishDate	2021
url	https://doaj.org/article/84f748efa7204610bd82d0bdaed08559
work_keys_str_mv	AT dolgekristiana importanceofenergyefficiencyinmanufacturingindustriesforclimateandcompetitiveness AT azisreinis importanceofenergyefficiencyinmanufacturingindustriesforclimateandcompetitiveness AT lundpeterd importanceofenergyefficiencyinmanufacturingindustriesforclimateandcompetitiveness AT blumbergadagnija importanceofenergyefficiencyinmanufacturingindustriesforclimateandcompetitiveness
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Importance of Energy Efficiency in Manufacturing Industries for Climate and Competitiveness

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