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Author:Boyd, G.A.
Title:A method for measuring the efficiency gap between average and best practice energy use: The ENERGY STAR industrial energy performance indicator
Journal:Journal of industrial ecology
2005 : SUMMER, VOL. 9:3, p. 51-65
Index terms:industries
ecology
energy
efficiency
measurement
energy consumption
models
Freeterms:performance
Language:eng
Abstract:Parametric/statistical (here as: p/s) models and engineering economics (as: e/e) models are typically distinguished in that e/e models explicitly represent best practice technologies while p/s ones are typically based on average practice. This article presents a p/s approach that can be used to measure best practice, thus providing a measure of the difference, or "efficiency gap", at a plant, company, or overall industry level. The approach requires plant-level data applying a stochastic frontier regression analysis (as: s-f-r-a.) used by the ENERGY STAR (trademark) industrial energy performance indicator (EPI) to energy intensity. S-f-r-a. separates energy intensity into three components: systematic effects, inefficiency, and statistical (random) error. This article outlines the method, giving examples of EPI analysis conducted for two industries, that is, breweries and motor vehicle assembly.
SCIMA record nr: 265824
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