Potential for energy efficiency improvement and barriers

Abstract

Energy efficiency improvement is one of the most important measures for CO2 emission reduction and energy resource sustainability. There are large differences in energy efficiency among countries in several sectors. The differences are also potential opportunities for energy-saving and CO2 emission reduction. The potential emission reductions in the power, iron and steel, and cement sectors alone are 2.7 GtCO2 per year in total. However, there are various barriers to technology diffusion. The barriers differ based on country, sector, size of company, and other factors. Removing the barriers is important and also presents opportunities for green growth. Barriers are very large in general, and therefore, high carbon prices are needed for deep emission reductions when explicit carbon prices, such as with carbon taxes and emission trading schemes, are adopted. However, the feasibility of introducing high carbon prices is very slim. Removing barriers by bottom-up measures is more useful and acceptable in the real world than a top-down approach, and such measures are expected to reduce emissions substantially. © Springer-Verlag London 2012.