DEA BASED APPROACH TO SET ENERGY EFFICIENCY TARGET UNDER PAT FRAMEWORK: A CASE OF INDIAN CEMENT INDUSTRY
DOI:
https://doi.org/10.29015/cerem.552Słowa kluczowe:
energy efficiency target, PAT framework, Data Envelopment Analysis, Indian cement industryAbstrakt
Aim: Propose a Data Envelopment Analysis (DEA) based approach to set energy efficiency targets under the Perform, Achieve and Trade (PAT) framework of the Bureau of Energy Efficiency (BEE)
Design / Research methods: We adopt input-oriented non-controllable DEA model with variable return to scale DEA
Conclusions / findings: Due to the implication of in-house energy conversion, we estimate separate energy efficiency targets based on “purchased energy” as well as “process energy”. The later accounts for energy finally used in the production process after in-house energy conversion.
Originality / value of the article: The Bureau of Energy Efficiency (BEE) in India has introduced a market based energy efficiency mechanism under the Perform, Achieve and Trade (PAT) framework. Under this mechanism, energy efficiency certificates can be traded across eight identified sectors thus bringing cost effectiveness to achieve the energy efficiency targets. To implement the scheme, differentiated energy efficiency targets have been set using baseline specific energy consumption. This approach does not account for technical and operational aspects like vintage, scale, output mix and input mix. This study proposes an alternative target setting method based on Data Envelopment Analysis (DEA) which takes into account some of the above mentioned technical and operational differences across the industrial plants. A comparative assessment highlights the efficacy of DEA methodology in implementation of the PAT scheme. We estimate energy efficiency targets based on “purchased energy” as well as “process energy”, i.e. that used finally in the production process.
Implications of the research: BEE may adopt the suggested approach to set energy efficiency targets for subsequent cycles under the Perform, Achieve and Trade (PAT) framework.
Bibliografia
Alacantara, V, & Duarte, R 2004, 'Comparison of energy intensities in European Union countries: Results of a structural decomposition analysis', Energy policy, vol. 32, no. 2, pp. 177-189.
Ang, BW, & Zhang, FQ 2000, 'A survey of index decomposition analysis in energy and environmental studies', Energy,vol. 25, no. 12, pp. 1149-1176.
Babusiaux, D, & Pierru, A 2007, 'Modelling and allocation of CO2 emissions in a multiproduct industry: the case of oil refining', Applied Energy, vol. 84, no. 7, pp. 828-841.
Blomberg, J, Henriksson, E, & Lundmark, R 2012, 'Energy efficiency and policy in Swedish pulp and paper mills: A data envelopment analysis approach', Energy Policy, vol. 42, pp. 569–579.
Bohringer, C, & Rutherford, TF 2008, 'Combining bottom-up and top-down', Energy Economics, vol. 30, no. 2, pp. 574-596.
Boyd, GA & Pang, JX 2000, 'Estimating the linkage between energy efficiency and productivity', Energy policy, vol. 28, no. 5, pp. 289-296.
Bureau of Energy Efficiency 2011. PAT consultation document.
Bureau of Energy Efficiency. New Delhi.
Bureau of Energy Efficiency 2012, PAT Booklet, 'PAT Perform, Achieve And Trade'. Available from https://www.beeindia.gov.in/content/pat-3/: [July 2012]
CEIC 2013, India Premium Database. Available at: Subscription at IIT Kanpur. [Accessed: February 2013]
Charnes, A, Cooper, WW, & Rhodes, E 1978, 'Measuring the efficiency of decision making units', European Journal of Operational Research, vol. 2, pp. 429-444.
Edvardsen, DF & Førsund, FR 2003, 'International benchmarking of electricity distribution utilities', Resource and energy Economics, vol. 25, no. 4, pp. 353-371.
Emrouznejad A, Yang, G 2018. 'A survey and analysis of the first 40 years of scholarly literature in DEA: 1978-2016', Socio-Economic Planning Sciences, 61 (1): 1-5
Farrell, MJ 1957, 'The measurement of productive efficiency', Journal of the Royal Statistical Society, vol. 120, no. 3, pp 253-290.
Frei, CW, Haldi, PH, & Sarlos, G 2003, 'Dynamic formulation of a top-down and bottom-up merging energy policy model', Energy Policy, vol. 31, no. 10, pp. 1017-1031.
Gielen, D and Taylor P 2009, 'Indicators for industrial energy efficiency in India', Energy, vol. 34, no. 2, pp. 962-969.
Greening, LA, Boyd, G, & Roop, JM 2007, 'Modeling of industrial energy consumption: An introduction and context', Energy Economics, vol. 29, no. 4, pp. 599-608.
Henning, D, & Trygg, L 2008, 'Reduction of electricity use in Swedish industry and its impact on national power supply and European CO2 emissions', Energy Policy, vol.36, no. 7, pp. 2330-2350.
Hu, JL, & Kao, CH 2007, 'Efficient energy-saving targets for APEC economies', Energy Policy, vol. 35, pp. 373–382.
International Energy Agency 2007, 'Tracking Industrial Energy Efficiency and CO2 Emissions', p 140-63.
International Energy Agency 2016, World Energy Statistics 2016, p. II.6-II.320.
Jamasb T, & Pollitt, M 2003, 'International benchmarking and regulation: an application to European electricity distribution utilities', Energy policy, vol. 31, no. 15, pp. 1609-1622.
Lawrence Berkeley National Laboratory 2011, 'Strategies for low carbon growth in India: Industry and non-residential sectors', LBNL-4557E..
Lee, WS 2008, 'Benchmarking the energy efficiency of government buildings with data envelopment analysis', Energy and Buildings, vol. 40, pp. 891–895.
Lee, WS, & Lee, KP 2009, 'Benchmarking the performance of building energy management using data envelopment analysis', Applied Thermal Engineering, vol. 29, no. 16, pp. 3269-3273.
Lescaroux, F 2008, 'Decomposition of US manufacturing energy intensity and elasticities of components with respect to energy prices', Energy Economics, vol. 30, no. 3, pp. 1068-1080.
Madlool, NA, Saidur, R, Hossain, MS, & Rahim ,NA 2011 'A critical review on energy use and savings in the cement industries', Renewable and Sustainable Energy Reviews, vol. 15, no. 4, pp. 2042-2060.
Mandal, SK & Madheswaran, S 2011, 'Energy use efficiency of Indian cement companies: a data envelopment analysis', Energy Efficiency, vol. 4, pp. 57–73.
Martínez, CIP 2011, 'Energy efficiency development in German and Colombian non-energy-intensive sectors: a non-parametric analysis', Energy Efficiency, vol. 4, pp. 115–131.
Ministry of Statistics & Programme Implementation (MOSPI), Energy Statistics 2012, 2013, 2014, 2015, 2016.
Mukherjee, K 2008,' Energy use efficiency in US manufacturing: a nonparametric analysis', Energy Economics, vol. 30, no.1, pp.76-96.
Nag, B, & Parikh, J 2000, 'Indicators of carbon emission intensity from commercial energy use in India', Energy Economics, vol. 22, no.4, pp. 441-61.
Oh, W, & Lee, K 2004, 'Causal relationship between energy consumption and GDP revisited: the case of Korea 1970–1999', Energy economics, vol. 26, no. 1, pp. 51-59.
Onut, S, & Soner, S 2006, 'Energy efficiency assessment for the Antalya Region hotels in Turkey', Energy and Buildings, vol. 38:, pp. 964–971.
Planning Commission 2008, 'Cement Task Force Reports for the Eleventh Five Year Plan (2007-2012)'. 2008.
Ramanathan, R 2000, 'A holistic approach to compare energy efficiencies of different transport modes', Energy Policy, vol. 28, no. 11, pp. 743-747.
Ramanathan, R 2005, 'An analysis of energy consumption and carbon dioxide emissions in countries of the Middle East and North Africa', Energy, vol. 30, no. 15, pp. 2831-2842.
Shyamal, P, & Bhattacharya, RN 2004, 'Causality between energy consumption and economic growth in India: a note on conflicting results', Energy Economics, vol. 26, no. 6, pp. 977-983.
Singh, A 2000, 'Energy Efficiency and CO2 Emissions Mitigation Potential in Indian Cement Industry', United Nations University/Institute for Advanced Studies (UNU/IAS), Tokyo, Working Paper No. 78.
Singh, A, Parikh, KS, & Parikh, J, 2010, Inter-fuel Substitution, Industrial Energy Demand and Carbon Emissions: An analysis using firm/plant-level data for 14 industrial sectors in India, VDM Verlag Dr. Müller.
Taeho, K 2008, 'Efficiency at Energy Industry: A Comparison of Energy Consumption Efficiency among Asian Pacific Countries', Asian Journal on Quality, vol. 9, no. 3, pp. 113-121.
Unander, F 2004, 'Decomposition of manufacturing energy-use in IEA countries: How do recent developments compare with historical long-term trends', Applied Energy, vol. 84, no. 7, pp. 771-780.
Yang, H, & Pollitt, M 2009, 'Incorporating both undesirable outputs and uncontrollable variables into DEA: The performance of Chinese coal-fired power plants', European Journal of Operational Research, vol. 197, no. 3, pp. 1095-1105
Zhou, P, Ang, BW, & Poh, KL 2008, 'Measuring environmental performance under different environmental DEA technologies', Energy Economics, vol. 30, no.1, pp. 1-14.
Pobrania
Opublikowane
Numer
Dział
Licencja
Autor przenosi nieodpłatnie na Wyższą Szkołę Bankową we Wrocławiu , bez ograniczeń terytorialnych, majątkowe prawa autorskie do tego utworu w rozumieniu ustawy z dnia 4 lutego 1994 roku o prawie autorskim i prawach pokrewnych ( Dz.U. 1994, Nr 24, poz. 83 ze zm. )na zasadzie wyłączności, tj. prawo do:
a) wyłącznego używania i wykorzystania utworu w dowolnej działalności przez Wyższą Szkołę Bankową we Wrocławiu, w szczególności w działalność Biblioteki Cyfrowej uruchomionej przez Wyższą Szkołę Bankową we Wrocławiu
b) wytwarzania, utrwalania i zwielokrotniania egzemplarzy utworów wszelkimi technikami, w tym techniką drukarską, reprograficzną, zapisu magnetycznego oraz techniką cyfrową, w szczególności ich zwielokrotniania poprzez dokonywanie zapisów na płytach typu CD,
c) zamieszczenia wybranych fragmentów utworu w celach promocyjnych w publikacjach, materiałach promocyjnych, w sieci Internet oraz sieciach wewnętrznych typu Intranet Wyższej Szkoły Bankowej we Wrocławiu,
d) wprowadzania utworu do pamięci komputera Wyższej Szkoły Bankowej we Wrocławiu,
e) kopiowania i powielania utworu w technologiach fotomechanicznych lub innych znanych w dniu zawarcia umowy (fotokopie, kserokopie itp.),
f) przetworzenia dzieła na formę elektroniczną i nieograniczonego rozpowszechniania w sieci Internet.
