Abstract

Analysis of the development of structure and intensity of manufacturing energy use in Norway and in 9 other OECD countries using Laspeyres indexing method.

In this paper we examine the evolution of the structure and intensity of energy use in Norwegian manufacturing using the Laspeyres indexing method. The development in Norway is contrasted and compared to that in 9 other OECD countries; Denmark, Sweden, Finland, (West)-Germany, U.K., France, Italy, USA, and Japan.

Our results show that Norwegian manufacturing energy use stands out compared to the other countries we have studied; aggregated energy use per manufacturing output (measured as value added) is higher than in any other country, and Norway is the only country where this aggregate intensity has not been reduced since the 1970s. The development of this intensity can to some extent be explained by increasing shares of energy intensive sectors. However, normalizing for the differences in manufacturing structure by adjusting to the average output mix of all 10 countries, still leaves Norway with the highest energy intensity for manufacturing. Holding the structure of manufacturing output constant, the Norwegian energy intensities showed by far the least reductions of all countries, corresponding to 18% savings of manufacturing energy use from 1973 to 1993, while most other countries achieved between 30 and 40% savings. Most of the savings in Norway came in three raw material sectors, chemicals, paper/pulp, and nonmetallic minerals, and were to some extent a result of substitution of oil with electricity in the early 1980s when oil prices were high. The higher efficiency of electric boilers indicates that without the substitution to electricity the Norwegian energy intensities would have been ever higher in comparison with the other countries in our study.

Low energy prices, for electricity very low, compared to other countries, and energy intensities in all sub-sectors among the highest of the countries we have studied, lead us to believe that there is a significant potential for energy savings in Norwegian manufacturing industries.

*On leave from Lawrence Berkeley National Laboratory, USA

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Panels of

Panel 2: Incentives and instruments to achive greater

Panel 1: Energy Efficiency policies, programmes and their links

Panel 4: Human dimensions of energy use and efficiency

Panel 3: Energy Efficiency options for industry

Panel 5: Energy efficiency in transport