IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v74y2017icp538-547.html
   My bibliography  Save this article

Assessing the driving factors for energy management program adoption

Author

Listed:
  • Sa, Aida
  • Thollander, Patrik
  • Cagno, Enrico

Abstract

The concept of energy management (EnM) became a topical issue in industrial settings as a result of the energy crises that affected the global community in the 1970s. However, EnM was not implemented within industry with all its potential to improve energy security, raise the maturity level of EnM and increase sustainability. According to the results of previous empirical investigations, the expected interest in energy programs is not found and there is no clear understanding about program adoption criteria within an industry. Keeping in mind the adoption of energy investment through conformation with financial analysis and choosing the investments through contextual factors in the organization (e.g. organizational energy culture, power relationships, EnM system, expertise availability, managers’ mindset) together with characteristics of EnM program as two macro perspectives in energy efficiency literature, this paper aims to understand the main driving factors which lead organizations to either adopt or not adopt a particular program (always with respect to energy management). Moreover, it aims to express the impact of those driving forces of implementing a successful EnM program which could contribute to better understanding of suitable EnM configuration. The investigation has been conducted as a multiple case study involving 15 manufacturing companies of varying size and in different sectors located in Sweden. After analyzing the minimum required steps to establish EnM, assessing the adoption of practices according to their energy strategy, and through assessing EnM maturity level, we found a low level of risk (which arises from lack of certainty and awareness) and the program's alignment with the core business as prominent driving factors for all sizes which foster positive investment decision making through top management. On the contrary, complexity of industry (for large manufacturing companies) and access to capital (for small and medium-sized companies) are the main barriers to adopting those programs.

Suggested Citation

  • Sa, Aida & Thollander, Patrik & Cagno, Enrico, 2017. "Assessing the driving factors for energy management program adoption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 538-547.
    • Handle: RePEc:eee:rensus:v:74:y:2017:i:c:p:538-547
    DOI: 10.1016/j.rser.2017.02.061
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1364032117302812
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2017.02.061?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hancevic, Pedro & Cont, Walter & Navajas, Fernando, 2016. "Energy populism and household welfare," Energy Economics, Elsevier, vol. 56(C), pages 464-474.
    2. Pierre Romelaer, 2001. "Investissement et organisation," Post-Print hal-00160037, HAL.
    3. Sam Aflaki & Paul R. Kleindorfer & Victor Sáenz Miera Polvorinos, 2013. "Finding and Implementing Energy Efficiency Projects in Industrial Facilities," Post-Print hal-00823923, HAL.
    4. de Groot, Henri L. F. & Verhoef, Erik T. & Nijkamp, Peter, 2001. "Energy saving by firms: decision-making, barriers and policies," Energy Economics, Elsevier, vol. 23(6), pages 717-740, November.
    5. Cebon, Peter B., 1992. "'Twixt cup and lip organizational behaviour, technical prediction and conservation practice," Energy Policy, Elsevier, vol. 20(9), pages 802-814, September.
    6. Fleiter, Tobias & Hirzel, Simon & Worrell, Ernst, 2012. "The characteristics of energy-efficiency measures – a neglected dimension," Energy Policy, Elsevier, vol. 51(C), pages 502-513.
    7. repec:arz:wpaper:eres2011-156 is not listed on IDEAS
    8. Zhao, Xiaoli & Li, Na & Ma, Chunbo, 2012. "Residential energy consumption in urban China: A decomposition analysis," Energy Policy, Elsevier, vol. 41(C), pages 644-653.
    9. Harris, Jane & Anderson, Jane & Shafron, Walter, 2000. "Investment in energy efficiency: a survey of Australian firms," Energy Policy, Elsevier, vol. 28(12), pages 867-876, October.
    10. Hong, Gui-Bing & Ma, Chih-Ming & Chen, Hua-Wei & Chuang, Kai-Jen & Chang, Chang-Tang & Su, Te-Li, 2011. "Energy flow analysis in pulp and paper industry," Energy, Elsevier, vol. 36(5), pages 3063-3068.
    11. Ates, Seyithan Ahmet & Durakbasa, Numan M., 2012. "Evaluation of corporate energy management practices of energy intensive industries in Turkey," Energy, Elsevier, vol. 45(1), pages 81-91.
    12. repec:dau:papers:123456789/3115 is not listed on IDEAS
    13. Anderson, Soren T. & Newell, Richard G., 2004. "Information programs for technology adoption: the case of energy-efficiency audits," Resource and Energy Economics, Elsevier, vol. 26(1), pages 27-50, March.
    14. Wang, Shujie & Yuan, Peng & Li, Dong & Jiao, Yuhe, 2011. "An overview of ocean renewable energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 91-111, January.
    15. Jan Velthuijsen, 1993. "Incentives for investment in energy efficiency: an econometric evaluation and policy implications," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 3(2), pages 153-169, April.
    16. Ma, Hengyun & Oxley, Les, 2011. "Are China's energy markets cointegrated?," China Economic Review, Elsevier, vol. 22(3), pages 398-407, September.
    17. Ronald J. Sutherland, 1991. "Market Barriers to Energy-Efficiency Investments," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 15-34.
    18. Abdelaziz, E.A. & Saidur, R. & Mekhilef, S., 2011. "A review on energy saving strategies in industrial sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 150-168, January.
    19. Gruber, Edelgard & Brand, Michael, 1991. "Promoting energy conservation in small and medium-sized companies," Energy Policy, Elsevier, vol. 19(3), pages 279-287, April.
    20. Stephen Decanio, 1994. "Agency and Control Problems in US Corporations: The Case of Energy-efficient Investment Projects," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 1(1), pages 105-124.
    21. Chi-Ming Lai & Yi-Pin Lin, 2011. "Energy Saving Evaluation of the Ventilated BIPV Walls," Energies, MDPI, vol. 4(6), pages 1-12, June.
    22. Cagno, E. & Worrell, E. & Trianni, A. & Pugliese, G., 2013. "A novel approach for barriers to industrial energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 290-308.
    23. Daan van Soest & Erwin Bulte, 2001. "Does the Energy-Efficiency Paradox Exist? Technological Progress and Uncertainty," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 18(1), pages 101-112, January.
    24. Paul J. H. Schoemaker, 1993. "Strategic Decisions In Organizations: Rational And Behavioural Views," Journal of Management Studies, Wiley Blackwell, vol. 30(1), pages 107-129, January.
    25. Jaffe, Adam B. & Stavins, Robert N., 1994. "The energy-efficiency gap What does it mean?," Energy Policy, Elsevier, vol. 22(10), pages 804-810, October.
    26. Sandberg, Peter & Soderstrom, Mats, 2003. "Industrial energy efficiency: the need for investment decision support from a manager perspective," Energy Policy, Elsevier, vol. 31(15), pages 1623-1634, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Trianni, Andrea & Cagno, Enrico & Bertolotti, Matteo & Thollander, Patrik & Andersson, Elias, 2019. "Energy management: A practice-based assessment model," Applied Energy, Elsevier, vol. 235(C), pages 1614-1636.
    2. Kelly M. Smith & Stephen Wilson & Paul Lant & Maureen E. Hassall, 2022. "How Do We Learn about Drivers for Industrial Energy Efficiency—Current State of Knowledge," Energies, MDPI, vol. 15(7), pages 1-26, April.
    3. Andrei, Mariana & Thollander, Patrik & Sannö, Anna, 2022. "Knowledge demands for energy management in manufacturing industry - A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 159(C).
    4. Hossain, Syed Raihan & Ahmed, Istiak & Azad, Ferdous S. & Monjurul Hasan, A S M, 2020. "Empirical investigation of energy management practices in cement industries of Bangladesh," Energy, Elsevier, vol. 212(C).
    5. Finnerty, Noel & Sterling, Raymond & Contreras, Sergio & Coakley, Daniel & Keane, Marcus M., 2018. "Defining corporate energy policy and strategy to achieve carbon emissions reduction targets via energy management in non-energy intensive multi-site manufacturing organisations," Energy, Elsevier, vol. 151(C), pages 913-929.
    6. Mette Talseth Solnørdal & Elin Anita Nilsen, 2020. "From Program to Practice: Translating Energy Management in a Manufacturing Firm," Sustainability, MDPI, vol. 12(23), pages 1-24, December.
    7. Katrina Benikovna Dobrova & Nadezhda Grigorevna Danilochkina & Natalia Vladimirovna Cherner & Victor Petrovich Dobrov & Peter Petrovich Dobrov & Ekaterina Nikolaevna Sepiashvili, 2018. "Innovational Management of Industrial Enterprises in the Energy Sector," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 447-458.
    8. Aida Sa & Patrik Thollander & Majid Rafiee, 2018. "Industrial Energy Management Systems and Energy-Related Decision-Making," Energies, MDPI, vol. 11(10), pages 1-12, October.
    9. Fernando Martins & Pedro Moura & Aníbal T. de Almeida, 2022. "The Role of Electrification in the Decarbonization of the Energy Sector in Portugal," Energies, MDPI, vol. 15(5), pages 1-35, February.
    10. Golpîra, Hêriş, 2020. "Smart Energy-Aware Manufacturing Plant Scheduling under Uncertainty: A Risk-Based Multi-Objective Robust Optimization Approach," Energy, Elsevier, vol. 209(C).
    11. Fernanda Spada Villar & Pedro Henrique Juliano Nardelli & Arun Narayanan & Renan Cipriano Moioli & Hader Azzini & Luiz Carlos Pereira da Silva, 2021. "Noninvasive Detection of Appliance Utilization Patterns in Residential Electricity Demand," Energies, MDPI, vol. 14(6), pages 1-23, March.
    12. Accordini, D. & Cagno, E. & Trianni, A., 2021. "Identification and characterization of decision-making factors over industrial energy efficiency measures in electric motor systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    13. Aida Sa & Patrik Thollander & Enrico Cagno & Majid Rafiee, 2018. "Assessing Swedish Foundries Energy Management Program," Energies, MDPI, vol. 11(10), pages 1-13, October.
    14. Hasan, A S M Monjurul & Tuhin, Rashedul Amin & Ullah, Mahfuz & Sakib, Taiyeb Hasan & Thollander, Patrik & Trianni, Andrea, 2021. "A comprehensive investigation of energy management practices within energy intensive industries in Bangladesh," Energy, Elsevier, vol. 232(C).
    15. Anna Sannö & Maria T. Johansson & Patrik Thollander & Johan Wollin & Birgitta Sjögren, 2019. "Approaching Sustainable Energy Management Operations in a Multinational Industrial Corporation," Sustainability, MDPI, vol. 11(3), pages 1-13, January.
    16. John Dadzie & Susan Djokoto, 2023. "Investigating Drivers Stimulating Demand for Green Renovation of Existing Buildings and Systems," Journal of Sustainable Development, Canadian Center of Science and Education, vol. 15(6), pages 1-88, May.
    17. A S M Monjurul Hasan & Andrea Trianni, 2020. "A Review of Energy Management Assessment Models for Industrial Energy Efficiency," Energies, MDPI, vol. 13(21), pages 1-21, November.
    18. A S M Monjurul Hasan & Mohammad Rokonuzzaman & Rashedul Amin Tuhin & Shah Md. Salimullah & Mahfuz Ullah & Taiyeb Hasan Sakib & Patrik Thollander, 2019. "Drivers and Barriers to Industrial Energy Efficiency in Textile Industries of Bangladesh," Energies, MDPI, vol. 12(9), pages 1-19, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aida Sa & Patrik Thollander & Majid Rafiee, 2018. "Industrial Energy Management Systems and Energy-Related Decision-Making," Energies, MDPI, vol. 11(10), pages 1-12, October.
    2. A S M Monjurul Hasan & Andrea Trianni, 2020. "A Review of Energy Management Assessment Models for Industrial Energy Efficiency," Energies, MDPI, vol. 13(21), pages 1-21, November.
    3. Apriani Soepardi & Pratikto Pratikto & Purnomo Budi Santoso & Ishardita Pambudi Tama & Patrik Thollander, 2018. "Linking of Barriers to Energy Efficiency Improvement in Indonesia’s Steel Industry," Energies, MDPI, vol. 11(1), pages 1-22, January.
    4. Mette Talseth Solnørdal & Lene Foss, 2018. "Closing the Energy Efficiency Gap—A Systematic Review of Empirical Articles on Drivers to Energy Efficiency in Manufacturing Firms," Energies, MDPI, vol. 11(3), pages 1-30, February.
    5. Olsthoorn, Mark & Schleich, Joachim & Hirzel, Simon, 2017. "Adoption of Energy Efficiency Measures for Non-residential Buildings: Technological and Organizational Heterogeneity in the Trade, Commerce and Services Sector," Ecological Economics, Elsevier, vol. 136(C), pages 240-254.
    6. Trianni, Andrea & Cagno, Enrico & Farné, Stefano, 2016. "Barriers, drivers and decision-making process for industrial energy efficiency: A broad study among manufacturing small and medium-sized enterprises," Applied Energy, Elsevier, vol. 162(C), pages 1537-1551.
    7. Fleiter, Tobias & Schleich, Joachim & Ravivanpong, Ployplearn, 2012. "Adoption of energy-efficiency measures in SMEs—An empirical analysis based on energy audit data from Germany," Energy Policy, Elsevier, vol. 51(C), pages 863-875.
    8. Fleiter, Tobias & Worrell, Ernst & Eichhammer, Wolfgang, 2011. "Barriers to energy efficiency in industrial bottom-up energy demand models--A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 3099-3111, August.
    9. Solnørdal, Mette Talseth & Thyholdt, Sverre Braathen, 2019. "Absorptive capacity and energy efficiency in manufacturing firms – An empirical analysis in Norway," Energy Policy, Elsevier, vol. 132(C), pages 978-990.
    10. Trianni, Andrea & Cagno, Enrico & De Donatis, Alessio, 2014. "A framework to characterize energy efficiency measures," Applied Energy, Elsevier, vol. 118(C), pages 207-220.
    11. Accordini, D. & Cagno, E. & Trianni, A., 2021. "Identification and characterization of decision-making factors over industrial energy efficiency measures in electric motor systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    12. Cagno, E. & Worrell, E. & Trianni, A. & Pugliese, G., 2013. "A novel approach for barriers to industrial energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 290-308.
    13. Thollander, Patrik & Backlund, Sandra & Trianni, Andrea & Cagno, Enrico, 2013. "Beyond barriers – A case study on driving forces for improved energy efficiency in the foundry industries in Finland, France, Germany, Italy, Poland, Spain, and Sweden," Applied Energy, Elsevier, vol. 111(C), pages 636-643.
    14. Fleiter, Tobias & Hirzel, Simon & Worrell, Ernst, 2012. "The characteristics of energy-efficiency measures – a neglected dimension," Energy Policy, Elsevier, vol. 51(C), pages 502-513.
    15. Brown, Marilyn A. & Gumerman, Etan & Sun, Xiaojing & Sercy, Kenneth & Kim, Gyungwon, 2012. "Myths and facts about electricity in the U.S. South," Energy Policy, Elsevier, vol. 40(C), pages 231-241.
    16. Kalantzis, Fotios & Revoltella, Debora, 2019. "How energy audits promote SMEs' energy efficiency investment," EIB Working Papers 2019/02, European Investment Bank (EIB).
    17. Häckel, Björn & Pfosser, Stefan & Tränkler, Timm, 2017. "Explaining the energy efficiency gap - Expected Utility Theory versus Cumulative Prospect Theory," Energy Policy, Elsevier, vol. 111(C), pages 414-426.
    18. Cotton, Deborah & De Mello, Lurion, 2014. "Econometric analysis of Australian emissions markets and electricity prices," Energy Policy, Elsevier, vol. 74(C), pages 475-485.
    19. Trianni, Andrea & Cagno, Enrico & Bertolotti, Matteo & Thollander, Patrik & Andersson, Elias, 2019. "Energy management: A practice-based assessment model," Applied Energy, Elsevier, vol. 235(C), pages 1614-1636.
    20. Tobias Fleitera & Joachim Schleich & Ployplearn Ravivanpong, 2012. "Adoption of energy-efficiency measures in SMEs - An empirical analysis based on energy audit data," Post-Print hal-00805748, HAL.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:74:y:2017:i:c:p:538-547. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.