Conceptualizing Energy Efficiency of Manufacturing Firms in a Developing Economy

Abstract

Globally, economic transformation and industrialization requires efficient utilization of energy resources. This therefore necessitates countries, authorities, bodies, policymakers and private players to invest in energy efficiency (EE). This is based on the fact that energy efficiency is an adequate means that minimises adverse effects of climate change, improving energy security, enhances competitiveness and making energy consumption more affordable for all users. The purpose of this study was to comprehend insights surrounding how energy efficiency is conceptualized, the methods/measures, indicators, and gaps still existent in its implementation. The methodology adopted was a systematic literature review of previous scholarly work on methods, measures and gaps that inform energy efficiency in the context of manufacturing firms. The main results from this review indicated that about 8% of reviewed studies had been carried out in developing economies like Uganda & Sierraleone as compared to developed countries like Russia, and United Kingdom that constituted 15%. Such is a signal of energy efficiency gaps in a developing context. Moreso, energy intensive manufacturing firms were revealed to include steel, aluminum, pulp & paper under which IEA predications for energy efficiency were projected to improve by more than 15% and yield sufficient energy savings and sustainable energy consumption during manufacturing activities. The novelty of this study hinges in the fact that a comprehensive review of both developed and developing economies was done to have a balanced views of how energy efficiency is conceptualized, measured and the magnitude of existent energy efficiency gaps in an industrial setting.

Key words: Energy efficiency, Indicators, developing economy, manufacturing firms, SDG 7