Energy Efficiency Development In The German
And Colombian Energy Intensive Sectors:
A Non-parametric Analysis
Author(s)
C. I. Pardo M.
Abstract
This study approaches the measurement of energy efficiency development in the
manufacturing sector at different aggregation levels from a production-theoretic
structure, using the method of Data Envelopment Analysis (DEA). Using data
from the German and Colombian Annual Surveys of Industries for the years
1998 to 2005, the analysis compares the energy efficiency performance in the
German and Colombian energy intensive sectors (EISs) at three levels of
aggregation, and then applies several alternative models. The results show
considerable variation in energy efficiency performance in the EISs of both
countries. Comparing the results across models, it was found that, in the German
industrial sector, the three measures of energy efficiency were similar, indicating
that an appropriate combination of technical efficiency and cost minimisation are
necessary for energy efficiency improvement. In the Colombian industrial sector,
the highest energy efficiency measured was from the cost minimisation model,
suggesting that the relative energy prices have not generated the right incentives
to improve energy efficiency. A second-stage regression and correlation analysis
reveals that, in German EISs, energy costs and investments have played an
important role in energy efficiency performance and decreasing CO2 emissions.
In Colombian EISs, inter-fuel substitution was the most significant variable.
Finally, the results of DEA models show a significant correlation with the
traditional energy efficiency measure, indicating that the energy efficiency
measured through DEA could be complementary to the energy intensity in
analysing other key elements of energy efficiency performance in the industrial
sector. In addition, energy efficiency is one of the quickest and the most efficient
strategies for reducing energy demand and CO2 emissions.
Keywords: DEA, Energy efficiency, energy intensive sectors.
Keywords
DEA, Energy efficiency, energy intensive sectors
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