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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. |
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