An Investigation Into the Barriers to Energy Efficiency Within Medium to Large Manufacturing Firms Operating Withinin the Ethekwini Municipal Area

Abstract

Preliminary investigations into the energy efficiency of manufacturing firms operating in South Africa have shown that no previous study of the barriers to energy efficiency has been conducted. This paper sets out to investigate whether there is an energy efficiency gap in medium to large manufacturing firms operating in the eThekwini municipal area. It goes on further to analyse the barriers to energy efficiency in such firms. These barriers are analysed by firm characteristics and across manufacturing sectors. The findings of this research indicate that more can be done to improve the energy efficiency profile within South African manufacturing subsectors. Policy-makers should take these findings into consideration when drafting new policy on energy efficiency. OPSOMMINGVoorlopige ondersoeke oor energiedoeltreffendheid in vervaardigingsaktiwiteite van maatskappye in Suid-Afrika toon dat daar geen vorige studies bestaan wat fokus op die struikelblokke van toepassing op bestaande energiedoeltreffendheid nie. Hierdie artikel ondersoek 'n energiedoeltreffendheidsgaping wat bestaan binne medium tot groot vervaardigingsmaatskappye binne die eThekwini munisipale gebied. Die ondersoek identifiseer en analiseer gepaardgaande beperkinge wat bestuurders binne sulke maatskappye verhinder om energie doeltreffendheid te implementeer. Die ondersoek en analise strek oor 'n aantal vervaardigingsektore. Die bevindinge van hierdie navorsing dui daarop dat heelwat meer bereik kan word in terme van energiedoeltreffendheid binne die verskeie vervaardigingsubsektore in Suid-Afrika. Hierdie gevolgtrekkings behoort in ag geneem te word deur beleidmakers tydens die opstel van 'n nuwe beleid oor energiedoeltreffendheid.

Closing the Energy Efficiency Gap—A Systematic Review of Empirical Articles on Drivers to Energy Efficiency in Manufacturing Firms

“…The review finds that economic policy instruments are considered most important. They stimulate energy efficiency through increasing energy taxes [52,91] and emission fees [26], or by providing investment subsidies [26,28,76,89,90]. Considering that firms are more responsive to initial costs than annual savings [41,58], one may assume that subsidies may be more effective at promoting energy-efficient technologies than energy price increases.…”

“…This includes the growth ambitions of the firm [70]. Furthermore, competitive organizations are more solution-oriented and more likely to find the use of energy-efficient technologies across various engineering domains [90]. Thus, increased innovations significantly reduce the firms' perception of barriers to energy efficiency [82].…”

Application of smart electronic systems, firm characteristics and efficient energy consumption – a case of public universities in Uganda

“…Similarly, Hertwich and Katzmayr (2003) contend that sustainable consumption works according to different mechanisms (size and age of organizations) that in turn lead to reduced costs as also various scientific investigations on smart electronic technologies indicate that energy-saving measures represent a substantial resource for efficient energy consumption (Energy Information Administration, 2013). Loganthurai, Parthasarathy, Selvakumaran and Rajasekaran (2012) further advance that implementation of smart electronic systems, appropriate firm characteristics and efficient energy management can yield numerous benefits that can help universities in saving on the cash outflow, a view similarly shared by Singh (2016) when he states that adopting energy-efficient systems is a cost-effective approach to sustainable economic development and the simultaneous reduction of energy consumption within firms. This means that energy efficiency is an energy source that results from reduced energy consumption while retaining benefits that result in a reduction in energy consumption.…”

Environmental Sustainability Commitment and Financial Performance of Firms Listed on the Johannesburg Stock Exchange (JSE)

“…There are fears that if the issue of climate change is not mitigated, South Africa is likely to be twice warmer than the global average [ 40 ]. The problem of high CO 2 emissions in South Africa is linked to overreliance on coal as the major resource to generate electrical energy [ 42 ]. The issue of climate change is a reality than a myth.…”