Pathway to Decarbonization Through Industrial Energy Efficiency: Micro and Macro Perspectives from Compressed Air Usage

Abstract

Energy audits directly provided the industrial sector with reduced energy costs and avoided emissions. Still, they also lead to far-reaching indirect and induced local, regional, and national benefits. This paper aims to present the techno-economic-environmental analysis to achieve decarbonization through implementing industrial energy efficiency at micro and macro levels. An integrated techno-economic-environmental methodology is developed. Case studies of micro-level carbon reduction efforts through industrial energy efficiency technologies are presented. The broader macroeconomic and environmental effects of technology on society are analyzed using data from 206 energy audits of industrial compressed air systems conducted over 13 years. The impacts show that energy-efficient improvements lead to direct cost savings for manufacturers, boost economic activity across sectors, and affect carbon dioxide emissions both short-term and long-term in the region. Given their extensive benefits, energy audits significantly influence policymaking. We devised a methodology to link micro-level energy audit data with macroeconomic and environmental analyses to quantify these cascading benefits. The economic scenario analysis shows that $228 M has been saved from direct industrial energy savings from implementing all compressed air recommendations in the studied periods and the region. In addition, the investment made through manufacturers would create 2,025 jobs and $383 M annually, cascading regional economic impacts. The environmental analysis shows that the regional manufacturers have directly avoided about 2.8 M metric tons of carbon dioxide emissions.