Program for Improving Energy Efficiency in Swedish Base Industries – Impact on Electricity Demand

摘要

One of today’s most discussed topics in the international political arena is the issue of climate change, and subsequently the policy measures that are required in order to stop this development. The European Commission has recently presented the so-called 20-20- 20 plan where it is proposed that by the year 2020; (a) Europe has to cut their CO_2 emissions by 20 percent; (b) 20 percent of all energy consumed in Europe have to come from renewable energy sources; (c) and energy efficiency has to increase with 20 percent. This study will focus on energy efficiency issues and more specifically on voluntary programs for improving energy efficiency in energy-intensive industries. Energy efficiency programs generally imply a reduced electricity-tax, which in itself could lead to increased electricity consumption. However, the programs also involve the implementation of systems that will search for energy efficiency solutions for the participating firms. The main argument for introducing energy efficiency programs are that the implementation of these solutions should lead to lower electricity use. The net effect of the programs is though not known. Due to this it is important to understand electricity demand behaviour in the heavy industries. For example; what are the substitution possibilities between important input factors, and how does investment in knowledge influence electricity demand? rnThe purpose of this paper is thus to analyse the electricity demand in the pulp and paper industry in Sweden, an industry where electricity consumption is high. We are interested in establishing electricity elasticities and short-run factor substitution between inputs in an industry with high electricity use, and thus with many firms that have joined an energy efficiency program. Of special interest is to study how R&D has affected electricity consumption.