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Industrial electricity demand and energy efficiency policy: the case of the Swedish mining industry
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences.
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0003-2264-7043
Luleå University of Technology, Department of Business Administration, Technology and Social Sciences, Social Sciences.ORCID iD: 0000-0001-6622-6983
2014 (English)In: Energy Efficiency, ISSN 1570-646X, E-ISSN 1570-6478, Vol. 7, no 3, p. 477-491Article in journal (Refereed) Published
Abstract [en]

The purpose of this paper is to analyze long-run electricity demand behavior in the Swedish mining industry with special emphasis on the impact of energy prices and private research and development (R & D) on electricity use. Methodologically, we estimate a generalized Leontief variable cost function using a panel data set of nine mining operations over the time period 1990-2005. Since the lower boundary of a set of short-run cost functions confines the long-run cost function, we can compute the long-run own- and cross-price elasticities of electricity demand. The empirical results indicate that long-run electricity demand in the mining industry is sensitive to changes in the own price, and already in a baseline setting Swedish mining companies tend to allocate significant efforts towards improving energy efficiency, in part through private R & D. From a policy perspective, the results imply that taxes (and tax exemptions) on electricity can have significant long-run impacts on electricity use. Moreover, future evaluations of so-called voluntary energy efficiency programs must increasingly recognize the already existing incentives to reduce energy use in energy-intensive industries

Place, publisher, year, edition, pages
2014. Vol. 7, no 3, p. 477-491
National Category
Economics
Research subject
Economics; Future mining (AERI); Renewable energy (AERI)
Identifiers
URN: urn:nbn:se:ltu:diva-5662DOI: 10.1007/s12053-013-9233-7ISI: 000334937300007Scopus ID: 2-s2.0-84899509369Local ID: 3d3afb66-80a6-4f51-b795-31aefd48b652OAI: oai:DiVA.org:ltu-5662DiVA, id: diva2:978536
Note
Validerad; 2014; 20131120 (andbra)Available from: 2016-09-29 Created: 2016-09-29 Last updated: 2018-07-10Bibliographically approved

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Henriksson, EvaSöderholm, PatrikWårell, Linda

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