The trends in CO2 emissions and energy efficiency in Swedish industries

This project analyses the trends in energy consumption and CO2 emissions in Swedish manufacturing and services industries between 1993 and 2008 using several econometric techniques. The results show that energy prices, energy taxes, investments and fuel substitution have influenced improvements in energy efficiency in Sweden.

This research project analyses the trends in energy consumption and CO2 emissions in Swedish manufacturing and services industries between 1993 and 2008. Using data at two-digit level, the performance of these sectors is studied in terms of CO2 emissions, energy consumption, energy efficiency measured as energy intensity, value of production, value added, fuel sources, energy prices and energy taxes. In manufacturing industries, decomposition analysis and stochastic frontier model were used to determine the trends CO2 emissions, energy use and energy efficiency. The results indicated that energy consumption, energy intensity and CO2 emission intensity have decreased significantly, that output growth has not required higher energy consumption, leading to a reduction in both energy and CO2 emission intensities, the results demonstrate that high energy prices, energy taxes, investments and electricity consumption have influenced indicators, indicating that Sweden has applied an adequate and effective energy policy in this sector.

In services industries, data envelopment analysis (DEA) and panel data techniques are used to assess energy efficiency and to determine which variables influence energy efficiency, respectively. In this sector, energy consumption and CO2 emissions have increased during the sample period. The results from the DEA indicated that service sector has increased technical efficiency and energy efficiency thus reducing CO2 emissions, especially in recent years. Second-stage panel data techniques show that higher energy taxes, investments and labour productivity lead to higher energy efficiency and lower CO2 emissions, while higher fossil fuel consumption leads to lower energy efficiency and higher CO2 emissions. These findings are important for developing effective energy policies that encourage better energy use and energy management in the service industries.

Period

2011-02-01 - 2012-02-29

Project leader

Prof. Semida Silveira

Researchers

Prof. Semida Silveira

Dr. Clara Pardo

Funding 

The Swedish Energy Agency and KTH

Publications

Pardo Martínez, C.I., Silveira S., 2012.  Energy efficiency and CO2 emissions in Swedish manufacturing industries.  Energy Efficiency, DOI 10.1007/s12053-012-9159-5.

Pardo Martínez, C.I., Silveira S., 2012.  Analysis of energy use and CO2 emission in service industries: Evidence from Sweden.  Renewable and Sustainable Energy Reviews, DOI 10.1016/j.rser.2012.04.051.