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Energy efficiency and CO2 emissions in Swedish manufacturing industries

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Abstract

This paper analyses the trends in energy consumption and CO2 emissions as a result of energy efficiency improvements in Swedish manufacturing industries between 1993 and 2008. Using data at the two-digit level, the performance of this sector is studied in terms of CO2 emissions, energy consumption, energy efficiency measured as energy intensity, value of production, fuel sources, energy prices and energy taxes. It was found that energy consumption, energy intensity and CO2 emission intensity, measured as production values, have decreased significantly in the Swedish manufacturing industries during the period studied. The results of the decomposition analysis show that output growth has not required higher energy consumption, leading to a reduction in both energy and CO2 emission intensities. The role of structural changes has been minor, and the trends of energy efficiency and CO2 emissions have been similar during the sample period. A stochastic frontier model was used to determine possible factors that may have influenced these trends. The results demonstrate that high energy prices, energy taxes, investments and electricity consumption have influenced the reduction of energy and CO2 emission intensities, indicating that Sweden has applied an adequate and effective energy policy. The study confirms that it is possible to achieve economic growth and sustainable development whilst also reducing the pressure on resources and energy consumption and promoting the shift towards a low-carbon economy.

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Notes

  1. For more details, see a survey of index decomposition analysis (Ang and Zhang 2000).

  2. ‘Energy intensity’ refers to the amount of energy used to obtain one unit of production, whereas ‘CO2 emission intensity’ is the amount of CO2 emissions generated to obtain one unit of production.

  3. It is independent of the point which is taken as the point of comparison.

  4. Successively relative changes can be added.

  5. A list of the sectors is shown in the Appendix.

  6. Energy efficiency is commonly defined as energy intensity, that is, the quantity of energy required per unit of output or activity. This definition implies that when the relationship between energy and production decreases over time, energy efficiency has improved.

  7. According to the Swedish Ministry of the Environment, the total revenue from environment-related taxes and fees amounted to roughly 7 billion euros per year, with higher taxes on non-eco-friendly consumption, primarily energy and carbon dioxide (www.sweden.gov.se/sb/d/5400/a/43594).

  8. For more details, see http://www.naturvardsverket.se/en/In-English/Start/Legislation-and-other-policy-instruments/Economic-instruments/Investment-Programmes/Climate-Investment-Programmes-Klimp/.

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Acknowledgements

The authors are grateful for the financial support provided by the Swedish Energy Agency and KTH for the development of this research. We also thank the support of the University of La Salle. The research has been developed independently.

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Correspondence to Clara Inés Pardo Martínez.

Appendix. List of Swedish manufacturing industries at the two-digit level

Appendix. List of Swedish manufacturing industries at the two-digit level

In this study, the following sectors were used based on Statistics Sweden (Swedish Environmental Accounts and Statistical database):

15–16 Manufacture of food products, beverages and tobacco

17 Manufacture of textiles

18 Manufacture of wearing apparel

19 Tanning and dressing of leather

20 Manufacture of wood and wood products

21 Manufacture of paper and paper products

22 Publishing and printing

23 Manufacture of coke, refined petroleum products and nuclear fuel

24 Manufacture of chemicals and chemical products

25 Manufacture of rubber and plastics products

26 Manufacture of non-metallic mineral products

27 Manufacture of basic metals

28 Manufacture of fabricated metal products

29 Manufacture of machinery and equipment

30 Manufacture of office machinery and computers

31 Manufacture of electrical machinery and apparatus

32 Manufacture of radio, television and communication equipment

33 Manufacture of medical and optical instruments, watches and clocks

34 Manufacture of motor vehicles, trailers and semi-trailers

35 Manufacture of other transport equipment

36 Manufacture of furniture and other manufacturing

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Pardo Martínez, C.I., Silveira, S. Energy efficiency and CO2 emissions in Swedish manufacturing industries. Energy Efficiency 6, 117–133 (2013). https://doi.org/10.1007/s12053-012-9159-5

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