Analysis of Energy Use Efficiency in Japanese Factories: The possibility of industry agglomeration effect for energy efficiency

Author Name TANAKA Kenta (Musashi University) / MANAGI Shunsuke (Faculty Fellow, RIETI)
Creation Date/NO. February 2016 16-J-003
Research Project Energy and Industrial Structural Change after the Fukushima Nuclear Accident
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To tackle worsening environmental and resource problems, increasing energy efficiency is the one of the most important policy issues in the world. Many previous studies have tried to measure energy efficiency in the industrial sector. However, previous studies did not sufficiently analyze what factors affect energy efficiency changes. In this study, we measure energy efficiency based on plant level data in the Japanese paper and pulp industry and cement industry. In addition, we try to reveal the relationship between industry agglomeration effect and energy efficiency of each factory. Our results show some important findings. First, energy efficiency has improved in recent years in the Japanese paper and pulp industry as well as the cement industry, but contribution factors for improvement of energy efficiency differ between each industry. Second, industry agglomeration affects energy efficiency. In the paper and pulp industry, the same industry agglomerations contribute to improvements in energy efficiency, however, the agglomeration effect is negative for energy efficiency in the cement industry.

Published: Tanaka, Kenta, and Shunsuke Managi, 2021. "Industrial agglomeration effect for energy efficiency in Japanese production plants," Energy Policy, Volume 156, 112442.