Energy efficiency in the European manufacturing SOFIA HENRIQUES EXERGY WORKSHOP, SUSSEX (WITH HANA NIELSEN, PAUL WARDE AND ASTRID KANDER)

Background & motivation  Many studies on comparative labor productivity in manufacturing (Broadberry, 1997) usually on developed economies  Differences in technology and labor productivity are usually interpreted as differences in the endowments of resources ( Habbakuk, 1962; David, 1975)  Energy, especially coal, considere as pre-requisite for growth (Allen, 2009; Kander et al., 2013, Wrigley, 1988, 2010, 2016).  However, no investigation of energy use or power in productivity growth or as substitute to labor….

Energy intensity (inverse of energy productivity) in 7 countries

What does this paper does (or will do…) :  Establishes labor productivity, energy productivity and power productivity benchmarks  Focus on manufacturing industries  For a group of 7 countries (Czech Lands, Denmark, Germany, Portugal, Sweden, United Kingdom, United States)  Characterized by different development and energy pathways  Over the period (I and II Industrial Revolution) - age of coal, age of electricity - age of globalization, age of protectionism

3 RQ of this paper  What is the development of energy productivity (energy intensity) in various sectors of manufacturing?  Are there substantial differences between the the ‘core’and the ‘catch-up’ group over the period ?  How does the development in energy productivity relate to that of the labor productivity?

Method  Energy intensity =Energy consumption/tonnes =1 /energy productivity  Labor intensity = Labor/tonnes = 1/labor productivity  Power intensity = HP/tonnes =1/power productivity

Data

Pig iron: declining energy intensities

Cotton textiles: Uk the most energy intensive

Woolen: Kuznets curve? – Uk the most energy intensive

Cement: energy intensity drops (but data only from 1913…), Uk the most energy intensive

Paper: convergence in 1935; probable Kuznets Curve

Sugar : beet, cane, convergence

Beer : except Czech, technology seems the same

Labour/energy productive differences

Ongoing steps, My project Energy efficiency in European Economy  Focus on extending the database until 2013 and focus entirely on energy efficiency  Enlarge database to other European countries (Spain, Italy and France – and drop Czech Lands)  Focus on just a few sectors ( pulp and paper, cement and iron steel) for the manufacturing  Will use ODEX for capturing the efficiency of the manufacturing sector ( and intends to extend this to other parts of the economy ( transport, households)  ODEX is considered to be a better measure of energy savings that the traditional energy per value added. 

Coal in Spain