Skip to main content

Advertisement

SpringerLink
Log in

Energy efficiency in the automotive industry evidence from Germany and Colombia

  • Published:
Environment, Development and Sustainability Aims and scope Submit manuscript

Abstract

This paper presents an analysis of energy efficiency performance in the automotive industry from evidence of Germany and Colombia in order to show important features in energy use between countries with the different income between 1998 and 2007. We found that the automotive industry improved its energy efficiency in each country. In order to understand the driving forces behind these trends, the concept of the production function is used to obtain the elasticities of substitutions and the relationships between several variables and energy efficiency performance in German and Colombian motor vehicle industries. In both countries, we found that the variables of energy prices and sizes of companies each have a positive influence on the efficiency of the gross production/energy ratio. These results show that, in the motor vehicle industry, energy efficiency performance depends on different factors. Hence, variables such as energy prices, energy taxes, economies of scale and technology changes have played a crucial role in the improvements in productivity and rational energy use.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price includes VAT (France)

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4

Similar content being viewed by others

Notes

  1. The European Parliament supported the European Commission’s call for mandatory reductions in energy use across the EU and, in so doing, gave a needed push to rationalise to energy use in Europe.

  2. The report notes that if existing legislation (e.g., on the energy performance of buildings, combined heat and power, eco-design, emissions trading and energy end-use efficiency) was fully implemented, the EU would already be halfway to meeting its target of reducing energy use by 20% by the year 2020, in line with the Commission's Energy Efficiency Action Plan.

  3. ISEC classifies data according to the kind of economic activity; German and Colombian statistical data are within this classification. The automotive industry is comprised of the manufacture of motor vehicles for transporting people or goods (341), manufacture of trailers and semi-trailers (342) and parts and accessories (343).

  4. These factories are CCA, (Compañía Colombiana Automortriz-Colombian Automotive Company, which assembles Mazda and Mitsubishi pick-ups), General Motors-Colmotores (assembles Chevrolet) and Sofasa (assembles Renault and Toyota). In bodywork, the monopoly is held by Monoblock (assembles chassis for Mercedes Benz).

  5. See “Appendix” for more details on data.

  6. WRI (1987) showed that in developed countries, a strategy to improve energy efficiency was the shift in the structure of energy sources from lower end-use efficiency fuels to higher end-use efficiency fuels.

  7. This includes finished and semi-finished components. Approximately 8,000–10,000 different parts are assembled into approximately 100 major motor vehicle components, including suspension systems, transmissions and radiators (EPA 2003).

  8. Economies of scale refer to the decreased per unit cost as output increases. More clearly, the initial investment of capital is diffused (spread) over an increasing number of units of output, and therefore, the marginal cost of producing a good or service decreases as production increases of scale).

  9. The automation in of motor vehicle manufacture is concentrated in the movement of cars along working stations, where coachwork is cut and welded.

  10. The IEA, in its report tracking Industrial Energy Efficiency and CO2 Emissions (2007), shows that improvements in energy efficiency generated a decrease in CO2 emissions in the industrial sector.

  11. The main investments made by the motor vehicle industry to improve energy efficiency are focused in technology applications for use of waste heat, heat recovery systems, life-cycle assessments of energy consumption during processing and distribution, energy recovery on-site or off-site, natural energy of groundwater cooling, production of electricity and heat from hydrogen using fuel cell technology, cogeneration and biomass and photovoltaic cells (Sustainability Report 2006).

  12. Both vehicle manufacturers and suppliers have achieved important improvements in technology, where engineering efficiency, competitive environment and energy efficiency have played an important role (Moavenzadeh 2006; Galitsky and Worrell 2008).

  13. Assemblers and suppliers develop parallel networks across the world generating initiatives for optimally integrating the quality management interfaces at the various stages of the supply chain or at a technical level achieving important improvements in the production process with principles for sustainable development (Humphrey and Memedovic 2003).

  14. The most important motor vehicle assemblies require certification in different management systems according to key suppliers or normal suppliers. Likewise, assembly companies, together with their suppliers, offer technical assistance, seminars, conferences, second party auditing, requests of certification and others.

  15. This variable was measured for the German automotive industry by taking into account VDA and sustainable report, and in the Colombian case as the percentage of plastic bought by this industry that is reported in the manufacturing survey.

  16. Steel guarantees structural integrity and the ability to maintain dimensional geometry throughout the manufacturing process.

  17. The Colombian industrial sector pays a 20% contribution on the Service Provision Cost, which is designed to cover the subsidies granted to the users with lower incomes.

  18. The use of recycled materials is important in this sector but especially in Europe because EU legislation (Directive 2000/53/EC) will require as from 2015 that only five percent of an automobile’s weight may be brought to landfill.

References

  • Bekmann, M., & Sato, R. (1969). Aggregate production functions and types of technical progress: A statistical analysis. The American Economic Review, 59, 88–101.

    Google Scholar 

  • Blesl, M., Das, A., Fahl, U., & Remme, U. (2007). Role of energy efficiency standards in reducing CO2 emissions in Germany: An assessment with TIMES. Energy Policy, 35, 772–785.

    Article  Google Scholar 

  • BMW. (2006). Sustentability report. http://www.bmwgroup.com/e/nav/index.html?http://www. Bmwgroup.com/e/0_0_www_bmwgroup_com/verantwortung/publikationen/sustainable_value_report_2007/leistungsindikatoren.shtml.

  • Bomb, C., McCormick, K., Deurwaader, E., & Kaberger, T. (2007). Bio-fuels for transport in Europe: Lessons from Germany and the UK. Energy Policy, 35, 2256–2267.

    Article  Google Scholar 

  • Boyd, G. (2005). Development of a performance-based industrial energy efficiency indicator for automobile assembly plants. Decision and Information Sciences Division. Argonne National Laboratory ANL/DIS-05-3.

  • Collard, F., Feve, P., & Portier, F. (2005). Electricity consumption and ICT in the French service sector. Energy Economics, 27, 541–550.

    Article  Google Scholar 

  • Colombian Department of Statistics (DANE). (2008). Annual publication, survey of manufacturer sectors. (In Spanish).

  • Dergay, J., & Gately, D. (1997). Vehicle ownership to 2015: Implications for energy use and emissions. Energy Policy, 25, 1121–1127.

    Article  Google Scholar 

  • ENERDATA & ODYSEE. (2007). CO 2 indicators. Report. www.odyssee-indicators.org.

  • Energy Intelligent Europe (EIE). (2004). Action, not talk and for an “Energy efficiency watch”. http://www.eufores.org/index.php?id=97.

  • Environmental Protection Agency (EPA). (1995). Profile of the: Motor vehicle assembly industry. EPA office of compliance sector notebook project. EPA/310-R-95-009.

  • Environmental Protection Agency (EPA). (2003). Energy efficiency improvement and cost saving opportunities for the vehicle assembly industry. Environmental Energy Technologies Division. LBNL-50939.

  • Galitsky, C., & Worrell, E. (2008). Energy efficiency improvement and cost saving opportunities for the vehicle assembly industry. Berkeley National Laboratory. LBNL-50939.

  • Guterman, L. (2000). Colombian Automotive Sector. CEPAL/IDRC CAN/97/S25 (In Spanish).

  • Hanson, D., John, A., & Lainer, S. (2004). An integrated analysis of policies that increase investments in advanced energy-efficient/low-carbon technologies. Energy Economics, 26, 739–755.

    Article  Google Scholar 

  • Humphrey, J., & Memedovic, O. (2003). The global automotive industry value chain: What prospects for upgrading by developing countries. Sectoral studies series. http://www.unido.org.

  • Intergovernmental Panel on Climate Change (IPCC). (2007). Climate change 2007 fourth assessment report. http://www.ipcc.ch/ipccreports/ar4-syr.htm.

  • International Energy Agency (IEA). (2007). Tracking industrial energy efficiency and CO2 emissions. In support of G8 plant action. Energy Indicators. www.iea.org/Textbase/publications/free_new_Desc.asp?PUBS_ID=1905.

  • International Labor Organization (ILO). (2005). Motor vehicle industry trends affecting component suppliers. Sectoral Activities Programme. TMTEM/2005.

  • International Standards Organization (ISO). (2003). “ISO mobile!” Eight of every 10 cars to run on ISO 9001:2000 by 2006. Management systems in the automotive sector. Special report.

  • Known, T. (2006). The determinants of the changes in car fuel efficiency in Great Britain (1978–2000). Energy Policy, 34, 2405–2412.

    Article  Google Scholar 

  • Koopman, G. (1997). Long-term challenges for inland transport in the European Union: 1997–2010 Consequences for transport fuel economy and use. Energy Policy, 25, 1151–1161.

    Article  Google Scholar 

  • Mahone, A., Woo, K., Williams, J., & Horowitz, I. (2009). Renewable portfolio standards and cost-effective energy-efficiency investment. Energy Policy, 37, 774–777.

    Google Scholar 

  • Maxwell, J., Oye, K., Rothenberg, S., Briscoe, F., & Koike, A. (1997). International motor vehicle program: Environmental practice survey results. International Motor Vehicle program. IMVP working papers W-0171a.

  • Meyer, I., Leimbach, M., & Jaeger, C. (2007). International passenger transport and climate change: A sector analysis in car demand and associated CO2 emissions from 2000 to 2050. Energy Policy, 35, 6332–6345.

    Article  Google Scholar 

  • Moavenzadeh, J. (2006). Offshoring automotive engineering: Globalization and footprint strategy in the motor vehicle industry. MIT International Motor Vehicle Program.

  • National Association of the Automotive Industry (VDA). (2006). Auto industry & the economy. http://www.vda.de/en/aktuell/statistik/auto+wirtschaft/index.html.

  • National Association of the Automotive Industry (VDA). (2006). Auto Annual Report. Verband der Automobilinindustrie.

  • National Department of planning (DNP). (2004). Structure foreign trade and protection of productive chain. Automotive industry (In Spanish).

  • Ogden, M., Williams, R., & Larson, E. (2004). Societal lifecycle costs of cars with alternative fuels/engines. Energy Policy, 32, 7–27.

    Article  Google Scholar 

  • Pardo, M. C. I. (2010a). Analysis of energy efficiency development in the German and Colombian food industries. International Journal of Energy Sector Management, 4, 113–136.

    Article  Google Scholar 

  • Pardo, M. C. I. (2010b). Energy use and energy efficiency development in the German and Colombian textile industries. Energy for Sustainable Development, 14, 94–103.

    Article  Google Scholar 

  • Ramesohl, S., & Merten, F. (2006). Energy system aspects of hydrogen as an alternative fuel in transport. Energy Policy, 34, 1251–1259.

    Article  Google Scholar 

  • Rothenberg, S., Schenck, B., & Maxwell, J. (2005). Lessons from benchmarking environmental performance at automobile assembly plants. Benchmarking: An International Journal, 12, 5–15.

    Article  Google Scholar 

  • Sakaguchi, T. (2000). Influence of diffusion of fuel-efficient motor vehicles on gasoline demand for individual user owned passenger cars. Energy Policy, 28, 895–903.

    Article  Google Scholar 

  • Samuel B. (2008). Energy Efficiency—the solution to high-energy prices. Programme Manager—Electricity & Energy, European Copper Institute. www.leonardo-energy.org.

  • Statistisches Bundesamt (Destatis). (2008a). Reporting period 1991–2007. Use of the environment and the economy (In German).

  • Statistisches Bundesamt (Destatis). (2008b). Annual publication, production in industry. Serie 4/serial 3.1 (In German).

  • Statistisches Bundesamt (Destatis). (2008c). Annual publication, statistical yearbook for the Federal Republic of Germany (In German).

  • Teotia, A., Vyas, A., Cuenca, R., Stodolsky, F., & Eberhardt, J. (1999). CAFE compliance by light trucks: economic impacts of clean diesel engine. Energy Policy, 27, 889–900.

    Article  Google Scholar 

  • Unit of mines and energy planning (UPME), & National association of industry (ANDI). (2003). Comparative analysis of international electricity prices. Industrial sector (In Spanish).

  • World Energy Council (WEC). (2008). Energy efficiency policies around the world: Review and evaluation. http://www.worldenergy.org/publications/energy_efficiency_policies_around_the_world_review_and_evaluation/default.asp.

  • World Resources Institute (WRI). (1987). Energy for development. www.wri.org.

  • Zachariadis, T. (2006). On the baseline evolution of automobile fuel economy in Europe. Energy Policy, 34, 1773–1785.

    Article  Google Scholar 

Download references

Acknowledgments

The author would like to thank Dr. Wolfgang Irrek and Alexander Cotte for their helpful suggestions and comments. The author is grateful for the support provided by the Wuppertal Institute, German Academic Exchange Service (DAAD) and the University of La Salle. Any remaining errors are the responsibility of the author.

Author information

Authors and Affiliations

  1. Faculty of Management and Economics, University of Wuppertal, Gaußstraße 20, 42119, Wuppertal, Germany

    Clara Inés Pardo Martínez

  2. Wuppertal Institute Research Group 2, Döppersberg 19, 42103, Wuppertal, Germany

    Clara Inés Pardo Martínez

  3. Faculty of Environmental Engineering, University of La Salle, Cra. 2, No. 10-70, Bogota, Colombia

    Clara Inés Pardo Martínez

Authors
  1. Clara Inés Pardo Martínez
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Clara Inés Pardo Martínez.

Additional information

Readers should send their comments on this paper to BhaskarNath@aol.com within 3 months of publication of this issue.

Appendix

Appendix

See Table 4.

Table 4 Summary of the main data used for German and Colombian motor vehicle industries
Full size table

Rights and permissions

Reprints and permissions

About this article

Cite this article

Pardo Martínez, C.I. Energy efficiency in the automotive industry evidence from Germany and Colombia. Environ Dev Sustain 13, 367–383 (2011). https://doi.org/10.1007/s10668-010-9266-4

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10668-010-9266-4

Keywords

Search

Navigation