Title: A comparative analysis of energy use and CO2 emissions in the manufacturing and service industries of Sweden

Authors: Clara Inés Pardo Martínez

Addresses: Faculty of Administration, Universidad del Rosario, Calle 12C No. 6-25, Bogotá, Colombia; Department of Energy Technology, Royal Institute of Technology (KTH), Brinellvägen 66, Stockholm, Sweden

Abstract: This study analyses the trends in energy use and CO2 emissions in the manufacturing industry and service sector. Using data at the two-digit aggregation level for the Swedish manufacturing and service industries, this empirical study intends to examine energy use, energy efficiency and CO2 emissions using data envelopment analysis (DEA) and panel data techniques. DEA is applied to assess energy efficiency within a production framework. Panel data techniques are used to determine which variables influence energy efficiency. The results from the DEA reveal significant variations in energy efficiency across the manufacturing and service industries. The results for these sectors also indicate that technical efficiency and energy efficiency have increased while CO2 emissions have decreased, especially in recent years. The results of the panel data techniques demonstrate that increased energy taxes, electricity consumption, investments and labour productivity generate higher energy efficiency, while higher fossil fuel consumption leads to lower energy efficiency. All of the findings of this study are important for developing effective energy policies that encourage better energy use and management in the industrial sector.

Keywords: manufacturing industry; service sector; energy efficiency; data envelopment analysis; DEA; panel data; Sweden; energy use; CO2; carbon dioxide; carbon emissions; technical efficiency; energy taxes; electricity consumption; investment; labour productivity; fossil fuel consumption; policies; taxation.

DOI: 10.1504/IJADS.2013.053275

International Journal of Applied Decision Sciences, 2013 Vol.6 No.2, pp.97 - 116

Available online: 11 Apr 2013 *

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