• Environmental and Resource Economics Review
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• v.30 no.4
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• pp.581-605
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• 2021

The purpose of this study is to provide basic data for improving energy efficiency by estimating the regional energy efficiency in Korea using the stochastic frontier approach beyond the energy intensity that has been traditionally used as an indicator of energy efficiency. In this paper, energy efficiency and energy intensity efficiency were estimated as a stochastic distance function from 1998 to 2018 for 16 cities and provinces in Korea. In addition, the robustness of energy efficiency according to the capital stock estimation methods which had been mixed in previous studies was reviewed. As a result of the analysis, there is a significant change in regional rankings according to the three energy efficiency indicators, so they should be used complementary to each other. Second, while the energy efficiency improved little by little over time, the energy intensity efficiency decreased slightly though. Lastly, energy efficiency by region according to the capital stock estimation method was not robust. Care must be taken in estimating capital stock, which is important in economic analysis.

• Journal of Environmental Policy
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• v.11 no.1
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• pp.75-97
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• 2012

The purpose of the paper is to estimate the functions of the energy input efficiency and the energy intensity efficiency, and measure their energy efficiencies for the reduction of greenhouse gases focusing on OECD countries. The efficiency of the traditional energy intensity was rarely connected with the energy efficiencies of the stochastic frontier function. It seems that the energy efficiency by the function of energy input efficiency sensitively responds to the order of GDP, capital stock, labor, and energy input quantity as explanatory variables. In the future, we need to reduce energy quantities by the optimal mix of inputs, and pursuit low-carbon economic growth through the production of the goods consuming small energy.

• Environmental and Resource Economics Review
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• v.10 no.2
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• pp.135-159
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• 2001

This study analyses the energy consumption increase by using a physical production index (PPI) based decomposition method. The energy efficiency of the Korean industry deteriorated to a large extent in the 1992 to 1997 period. This outcome, however, does not contradict the result of a previous study that the physical energy intensities (measured by energy use per production unit) decreased in four Korean energy intensive industries such as steel, cement, petrochemical and pulp and paper in the same period. Although the physical energy intensities in four industries considered decreased significantly, the energy efficiency of the Korean industry deteriorated because the increase in the value-added production was smaller than that in the physical production except for the steel industry. This outcome suggests that the reduction in the physical energy intensity alone will not result in reducing the economic energy intensity, thereby reducing the increase in the energy consumption of the Korean industry. Therefore, it necessitates to restructure the Korean industry towards a higher value-added production and to strengthen energy efficiency improvement efforts in the Korean industry. As the overinvestment in the energy intensive industries caused a deep price fall of Korean products and a reduction of the value added of the Korean industry and with it an increase in the economic energy intensity, a decrease in this intensity will highly depend on reducing the overcapacity in the energy intensive industries which was partly responsible for the currency and economic crisis of 1997.

• Environmental and Resource Economics Review
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• v.20 no.1
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• pp.33-60
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• 2011

The purpose of the article is to compare the impacts of energy efficiency and economic growth for energy demand through production frontier approach in OECD countries. We compared the traditional energy intensity with energy efficiencies of production frontier approach, slack efficiency on the frontier, and estimated elasticity of energy demand for GDP growth. First, the energy intensity has a low relationship with energy efficiency by radial approach, but has constant correlations with slack energy efficiency, slack-adjusted efficiency by non-radial approach, and energy efficiency by horizon approach. If we measure energy efficiency only with energy elasticity, it may make a mistake. Especially the energy efficiency by radial approach has a tendency to overestimate most OECD countries. Second, as many countries have excess energy consumption of 17.3% even on the points of the frontier, reduction of energy consumption is necessary in addition. Third, the average energy elasticity of OECD countries is 1.1 close to elasticity 1. There exists the difference of elasticity among countries and the energy demands are also high in countries with high elasticity.

• Environmental and Resource Economics Review
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• v.17 no.2
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• pp.255-286
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• 2008

In this paper, it is tried to combine the decomposition method and econometric analysis for the extension of the decomposition method. Since two approaches approach the energy efficiency problem in the different perspectives, it is believed that it is hard to reconcile the results of two approaches. In the results of energy intensity effect analysis with the econometric method, it is found that the increase in the energy price results in the improvement of energy intensity effect. In enconometric analysis of energy efficiency, the coefficient of a time trend measured as a proxy of energy efficiency is significant and has a negative effect on the energy consumption. This finding implies the energy efficiency improves very slowly over time. In addition, the directions of energy efficiency improvement in the decomposition method are consistent with those in the econometric analysis in four industries. This finding indicates that two methods may be in complementary cooperation for the analysis of energy efficiency. Therefore, it is needed the efforts to seek the complementarity between two methods for the enhancement of academic and policy implications.

• Asia Pacific Journal of Business Review
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• v.3 no.1
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• pp.19-38
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• 2018

The energy intensity of Nepal is economically not worthy, lacks eco-friendly and importantly not sustainable, and almost four times the average global energy intensity. Considerable efforts have been exercised to reduce the energy gap yet, it is still much to achieve. Nation priority on energy sector was envisaged with promulgation of investment friendly rules and law in hydropower and renewable technology even though, could not harness the sufficient energy. In amid of this acute energy crisis, the government launched the Nepal Energy Efficiency Programme (NEEP) with technical assistance from German International Cooperation (GIZ). Energy Efficiency (EE) practice is the most cost-effective method to reduce the supply and demand gap, reduce on greenhouse gases and pollution, and deter on import of petroleum products which finally improves on trade imbalance. This paper had proposed a framework of energy management team to promote energy efficient technologies in residential consumer. The energy management teams study the past records of energy use pattern of consumers and suggest appropriate technology for energy saving options. The paper provides some reviews of energy efficiency initiatives undertaken by the concern regulatory body which highlights the current status. The comprehensive knowledge acquired through exploratory research is implemented in this paper to identify the various barriers that domestic consumer is experiencing towards the active participation in energy efficiency program launched by the Government of Nepal.

• International Commerce and Information Review
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• v.16 no.2
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• pp.199-218
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• 2014

The study was focused on the Energy Efficiency of Korea. Thus this study calculates Energy Intensity and Energy Dependence, Energy Independence rate using data Korea Energy Statistics. This study calculate 'Energy Intensity', 'Energy Dependence', 'Energy Independence rate', which is making use of the Gross Domestic product, Energy Consumption, Energy Export and Import, Energy Gross Input. The analysis of the pater suggests that this goal can be achieved throuth improved efficiency of Energy consumption and Energy Independence.

• Journal of Environmental Impact Assessment
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• v.20 no.5
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• pp.585-600
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• 2011

South Korean central government has launched the first comprehensive climate change policies in 1999, and they have been renewed every three year. The third policies ended in 2007. However, it is quite rare to analyze whether the climate change policies are effective against climate change. In this context, this paper aims at analyzing the effectiveness of climate change policy which was launched for seven years from 1999 to 2007 in South Korea. The effectiveness analysis of policy can be done in terms of the individual policy and/or all policies being synthesized as a comprehensive unit. Employing the latter methodology, this paper analyzed the effectiveness on the basis of economic growth as independent variable, greenhouse gas emission as dependent variable, and energy use and its process as intervening variable. Seven analytic indicators covering the three variables were selected on the basis of two points in time before and after climate change policy having been launched. The seven indicators were analyzed in terms of three aspects. They were the change in the state of each indicator, the effectiveness of climate change policy from 1999 to 2007, and the effectiveness process from 1999 to 2007. The effectiveness process was analyzed in terms of the relational context and its flow processing path. Economic growth was advanced remarkably with increase in the total consumption of energy. As a result, greenhouse gas emission increased. However, energy efficiency increased with significant decrease in energy intensity, carbon intensity, and energy elasticity. The expansion of new and renewable energy over total energy supply was not effective significantly on the decrease in greenhouse gas emission. The processing path of climate change policy being effective advanced toward increase in energy efficiency through energy intensity rather than toward sustainable development. Such a way of the effectiveness of climate change policy implies that most policies focused on adaptation rather than on mitigation.

• Journal of the Korean Regional Science Association
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• v.33 no.1
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• pp.3-16
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• 2017

This paper analyzed 16 regional total factor energy efficiency (TFEE) of the Korean manufacturing sector using data envelopment analysis method for the period of 2005-2013. According to the empirical results, it is necessary to use TFEE as well as partial energy efficiency defined by the ratio of energy usage to output (energy intensity) when we compare energy efficiency. Secondly, TFEE in the Korean manufacturing sector is quite different across 16 regions. For example, Gangwon province should improve energy efficiency by 55% compared to Seoul, Gwangju, Ulsan, and Gyeongbuk which are located on production frontier. Furthermore, the estimation of panel tobit regression model showed that the higher non fossil fuel using, the higher production share of large-sized firms, the lower energy intensity, and the lower capital-labor ratio could have positive effect on TFEE.

• Environmental and Resource Economics Review
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• v.19 no.1
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• pp.129-157
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• 2010

This paper is intended to evaluate energy efficiency policy in demand side, to assess the residential sector's energy efficiency policy and to analyze the system of energy efficiency practices. We examined residential energy consumption over the period 1990~2006. The decomposition method in the analysis was a logarithmic mean Divisia index (LMDI) techniques to decompose changes in energy intensity. First of all, the energy use in residential sector was adjusted to correct weather-induced variations in energy consumption, because adjustments for normal weather patterns facilitated inter-temporal comparison of intensity. The analysis on the residential sector shows that the overall energy intensity of the residential sector declined at an average 1.0% per year, while the structure effect increased by 1.8% per year, and the activity effect increased by 0.7% per year. In other words, the decline of floor space, number of household, and appliance ownership per capita has an effect on increase in residential consumption. The improvement in energy efficiency had strong contribution on the decrease of energy consumption. We find that the general results of analysis on residential energy are similar to those of IEA. The energy efficiency policy in residential sector is assessed to obtain some results during 1990~2006. In residential sector, structural variables such population per household, diffusion of appliance and activity factor such as population contributed to the increase of energy consumption while energy intensity effect induced the decrease of energy consumption. These findings are consistent with international trend as well as our prior expectation.