Improving Energy Efficiency in Industrial Energy Systems

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1 Patrik Thollander Jenny Palm Improving Energy Efficiency in Industrial Energy Systems An Interdisciplinary Perspective an Barriers, Energy Audits, Energy Management, Policies, and Programs 4) Springer

2 Contents 1 Setting the Agenda Introduction Aim Perspectives an Energy Systems An Interdisciplinary Approach to Efficiency in Industry Sustainability Principles Contextualizing Energy Efficiency in Industry Industrial Small- and Medium-Sized Enterprises Contributions Organization of the Book 12 References 13 2 Improving Energy Efficiency in Industrial SMEs Introduction Unit Process Categorization Energy Use in Various Industrial Sectors Energy Use and Technical Potential for Improved Energy Efficiency in Industrial SMEs Electric Motor Systems Pumping Compressed Air Ventilation Space Heating and Cooling Lighting Internal Transport Hot Tap Water Energy Efficiency Potentials in Industry Importance of a Systems Perspective with Regard to Improved Energy Efficiency 23 ix

3 x Contents 2.5 Energy Audits Effective Industrial Energy Audit Programs Important Aspects of Industrial Energy Audit Programs Realizing the Potential: The Company Perspective Energy Efficiency: Why Not? The Rebound Effect Conclusion 32 Reference s 33 3 Barriers to Energy Efficiency: Theoretical Baseline, Previous Research, and Methodological Approaches Introduction Energy Policy Decision Making and Barriers to Energy Efficiency Market Forces and Market Failures The Energy Efficiency Gap: What Does it Mean Barriers Market Failures: Economic Barriers Imperfect Information Adverse Selection Principal Agent Relationships Split Incentives Nonmarket Failures: Economic Barriers Hidden Costs Limited Access to Capital Risk Heterogeneity Behavioral Barriers Form of Information Credibility and Trust Values Inertia Bounded Rationality Organizational Barriers Power Culture Methodology Approaches to Studying Barriers Various Ways of Categorizing Barriers to Energy Efficiency Research Design of Studies of Barriers to Energy Efficiency Examples from Barrier Studies 49

4 Contents xi 3.11 Barriers Not Fully Explaining the Existence of the "Energy Efficiency gap" Distortions in Energy Prices Various Perspectives on Energy Government Fiscal and Regulatory Policies Supply Infrastructure Limitations Codes and Standards Structure Promoting Energy Efficiency Through Energy Services Conclusions 56 References 57 4 Sociotechnical Perspectives on Technological Development Introduction Energy as Sociotechnical Systems Innovation Processes Transition from Multi-Level Perspective Sociotechnical Regimes Institutions as a Theoretical Concept Communities of Practice Conclusions 69 References 70 5 Barriers to Energy Efficiency from a Sociotechnical Perspective Introduction Information: Imperfect and Asymmetric Information, Adverse Selection, Form of Information, Credibility, Trust Financial Uncertainties: Principal Agent Relationship, Split Incentives, Limited Access to Capital, Risk Rationality: Bounded Rationality, Hidden Costs Heterogeneity Values: Inertia and Culture Power Conclusion 80 References 82 6 Managing Energy Efficiency in Industry: Theory and Practice Introduction Energy Management in Industry: Previous Research Considering the Complexity of a System: A Need for Methodological Change Transition in Organizations 91

5 xii Contents 6.5 Transactional Analysis in Relation to Energy Management Empowering Means Believing in Individuals Establishing Energy Management Within an Organization Energy Management: The Need to Lead While Delegating Leadership Delegating Authority and Taking Risk The Adoption of an Energy Strategy To Concretize: Success Factors for In-House Energy Management Conclusion 102 References Policies Promoting Improved Energy Efficiency Introduction Ecological Modernization: Ecology and Economy in Symbiosis Policy Analysis and Policy as Process Policy Instruments The Rebound Effect The Energy End-Use Efficiency and Energy Services Directive Asymmetric Energy Policy Shocks (AEPSs) Implications of AEPSs in Relation to Energy End-Use Policy Cost-Effectiveness Policy Implementation Through Energy Networks Energy Efficiency Related to the EU ETS A Means to Merge Energy End-Use Policy Programs and the EU ETS Energy Efficiency Potential Not Equivalent to Actual Outcome Designing Energy Policies Differently for Different Sectors Policy Instruments in Relation to Barriers Structuring an Energy Audit Program for Industrial SMEs Fully or Partly Subsidized Energy Audits Scope of Energy Audits Coverage of the Industrial Sector: A Swedish Example A Energy Audit program Versus an LTA program Choice of Operating Agent and Local Authority Involvement Evaluating Energy Audit Programs Alternative Evaluation Methods Conclusion 130 References 131

6 Contents xiii 8 Concluding Discussion: Elaborating an the Energy Efficiency Gap Introduction The Energy Efficiency Gap in a Social Science Context The Energy Management Gap The Energy Policy Gap 143 Reference s 145 Authors' Biographies 147 Index 149