Productivity benefits of industrial energy efficiency measures

TitleProductivity benefits of industrial energy efficiency measures
Publication TypeJournal Article
Year of Publication2003
AuthorsWorrell, Ernst, John A Laitner, Michael Ruth, Hodayah Finman
Date Published09/2003
Keywordsindustrial energy analysis

We review the relationship between energy efficiency improvement measures and productivity in industry. We review over 70 industrial case studies from widely available published databases, followed by an analysis of the representation of productivity benefits in energy modeling. We propose a method to include productivity benefits in the economic assessment of the potential for energy efficiency improvement. The case-study review suggests that energy efficiency investments can provide a significant boost to overall productivity within industry. If this relationship holds, the description of energy-efficient technologies as opportunities for larger productivity improvements has significant implications for conventional economic assessments. The paper explores the implications this change in perspective on the evaluation of energy-efficient technologies for a study of the iron and steel industry in the US. This examination shows that including productivity benefits explicitly in the modeling parameters would double the cost-effective potential for energy efficiency improvement, compared to an analysis excluding those benefits. We provide suggestions for future research in this important area.

LBNL Report Number