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Barriers to energy efficiency improvement and decision-making behavior in Thai industry

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Abstract

The industrial sector is one of the main energy consuming sectors in Thailand and accounted for 36.7% of total energy consumption in 2005. The trend of rising energy prices and tougher competition increases the demand to improve energy efficiency in Thai industry. However, the existence of various barriers often hinders the realization of even some cost-effective energy efficiency measures. In an attempt to investigate key barriers to and drivers for energy efficiency improvement in Thai industry, this study found that the most important barrier expressed by both the textile and cement industries studied as well as experts interviewed is that the management is concerned about production and other matters rather than energy efficiency. Reducing product cost by reducing energy cost is found to be the main driver for energy efficiency investment. Using a conceptual industrial energy efficiency policy framework this study shows how various energy efficiency policies can affect the process of decision-making for and investment in energy efficiency in industry.

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Notes

  1. A Likert scale is a type of psychometric response scale often used in questionnaires, and is one of the most widely used scales in survey research. When responding to a Likert questionnaire item, respondents specify their level of agreement to a statement.

  2. Energy elasticity = annual growth of energy consumption/annual growth of GDP

  3. GDP at 1988 prices

  4. Divisia decomposition technique is one technique that is used to decompose the changes in energy intensity or GHG emissions into several defined factors such as structural change of the industry, energy efficiency improvement, etc. (Ang and Zhang 2000)

  5. They have defined energy intensity as energy used per unit of GDP.

  6. It should be noted that while in our questionnaire we provided textile and cement plants to score the options under each main question, for interviewees we just ask the main questions and let them answer based on their experience in Thailand.

  7. Department of Alternative Energy Development and Efficiency

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Acknowledgement

Authors are grateful to the cement and textile companies who cooperated in this study and answered our questionnaire. We also would like to express our appreciation to all the experts who spent their valuable time and participated in our interview. Finally, we would like to thank Assoc. Prof. Dr. Apichit Therdyothin and Prof. Dr. Surapong Chirarattananon for their valuable input for this study.

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Authors and Affiliations

  1. The Joint Graduate School of Energy and Environment, King Mongkut’s University of Technology Thonburi, 126 Pracha-uthit Rd, Bangmod, Tungkru, Bangkok, 10140, Thailand

    Ali Hasanbeigi

  2. Department of Building Engineering Services, Energy Technology division, University of Applied Sciences, Schneidershof, 54293, Trier, Germany

    Christoph Menke

  3. International Resources Group, 60/1 Phahonyotin Soi 8 (Soi Sailom), Phahonyothin Rd., Samsen Nai, Phayathai, Bangkok, 10400, Thailand

    Peter du Pont

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  1. Ali Hasanbeigi
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  2. Christoph Menke
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  3. Peter du Pont
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Correspondence to Ali Hasanbeigi.

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Hasanbeigi, A., Menke, C. & du Pont, P. Barriers to energy efficiency improvement and decision-making behavior in Thai industry. Energy Efficiency 3, 33–52 (2010). https://doi.org/10.1007/s12053-009-9056-8

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