Making a stronger case for industrial energy efficiency by quantifying non-energy benefits

This paper describes a more compelling case for industry to promote the non-energy benefits of energy efficiency investments. We do this in two ways to actively appeal to chief executive officers (CEOs) and chief financial officers (CFOs) primary responsibility: to enhance shareholder value. First, we describe the use of a project-by-project corporate financial analysis approach to quantify a broader range of productivity benefits that stem from investments in energy-efficient technologies, including waste reduction and pollution prevention. Second, and perhaps just as important, we present such information in corporate financial terms. These standard, widely-accepted analysis procedures are more credible to industry than the economic modeling done in the past because they are structured in the same way corporate financial analysts perform discounted cashflow investment analyses on individual projects. Case studies including such financial analyses, which quantify both energy and non-energy benefits from investments in energy-efficient technologies, are presented. Experience shows that energy efficiency projects’ non-energy benefits often exceed the value of energy savings, so energy savings should be viewed more correctly as part of the total benefits, rather than the focus of the results. Quantifying the total benefits of energy efficiency projects helps companies understand the financial opportunities of investments in energy-efficient technologies. Making a case for investing in energy-efficient technologies based on energy savings alone has not always proven successful. Evidence suggests, however, that industrial decision makers will understand energy efficiency investments as part of a broader set of parameters that affect company productivity and profitability.     

Efficient energy use and well being

This paper reviews the evolution of energy use in Sweden since the early 1970s to shed light on the future, with emphasis on the role of energy efficiency. Between 1973 and 1989 improvements in end-use energy efficiency saved 8% of Sweden's primary energy use and 24% of Sweden's delivered energy use. These savings were concentrated in the residential and manufacturing sectors, with important savings also occurring in air travel and the heating of commercial buildings. Despite these accomplishments, we found that Sweden was well behind Denmark, FRGermany, Japan and the USA in energy savings during this period. At the beginning of the 1990s Sweden exhibited one of the most energy intensive economic structures in the OECD. Sweden now faces many dilemmas that will influence future energy use: the role of nuclear power, pricing and taxation policies for fuels and electricity, the future of subsidies for housing and travel, the role of Sweden's energy intensive exports, and indeed the very lifestyle of the Swedes.     

Business excellence through resource efficiency (betre): An evaluation of the UKs highest recruiting, facilitated self-help waste minimisation project

The business excellence through resource efficiency (betre) project aimed to increase awareness of the benefits of waste minimisation for SMEs in West Sussex, South East England. The programme was run by the West Sussex Sustainable Business Partnership, a collaboration of all West Sussex Local Authorities, the Environment Agency and EcoSys (a service provider). Betre provided a range of free business support and advice over an 18-month period including; workshops, newsletters, audits, grants and a technical Helpline. Information on environmental compliance and Best Practice for waste minimisation, recycling, energy and water efficiency was disseminated. All activities were linked with the UK government's Best Practice programmes. Although company recruitment was initially slow, betre was ultimately extremely successful at attracting companies to join; with 308 recruited. This is probably the most successful recruitment to a project, of this type, in the UK to date. Over half of the business members became actively involved and attended training events or had environmental audits. There were over 200 improvement actions identified by 64 of the participating companies. These resulted in estimated cost savings of at least £215 000 per annum. In addition, actions taken to prevent pollution and ensure compliance with environmental legislation have the potential to save businesses a further £204 000 in possible penalties. The environmental impact of the project has been significant, with reductions identified in waste (1437 tonnes), water (62 933 m³) and energy (15 million kW h—equivalent to 668 tonnes CO₂). In addition to actions with directly measurable results, betre has stimulated long-term benefits by addressing pollution prevention and compliance, through the formulation of environmental policies and from the adoption of Environmental Management Systems. One of the key learning points is that it may have been better to devote less time to running training events and instead to have diverted this time to increased business support, mainly through audits. To capitalise on this success, a new project is being planned to disseminate Best Practice.     

Traffic-related air quality assessment for open road tolling highway facility

Open road tolling (ORT) design has been considered as an effective means of smoothing highway traffic and reducing travel delay on toll highways. In this paper it is demonstrated that ORT can also achieve significant air quality benefits over the conventional toll plaza design. The near roadside carbon monoxide (CO) concentration levels can be reduced by up to 37%, and diesel particulate matter (DPM) emissions can decrease by as much as 58%. These large expected air quality benefits have great implications to the regional efforts of reducing mobile source air pollution toward achieving attainment status and healthier living environment.     

Making the Business Case for Sustainability: How to Account for Intangible Benefits—A Case Study Approach

Sustainability is continuing to change the way businesses operate. Stakeholders are insisting that corporations implement more responsible business practices, and they are holding them increasingly accountable for their associated environmental and social impacts. Research has provided significant contributions toward sustainability‐related tools and best practices, allowing sustainability to be integrated even farther across business operations. However, challenges still exist, preventing many companies from fully integrating sustainability. Although intangible benefits are not commonly included in business case assessments, such benefits can be derived through sustainability initiatives and may offer additional value in evaluating the business case for sustainability. In this article, we review current literature on accounting methods for the business case for sustainability as well as currently available methods or tools that are capable of estimating intangible benefits. In addition, we use case studies to illustrate if, and how, companies are accounting for intangible benefits, and we identify best methods for accounting for intangible benefits.     

Who Visits a National Park and What do They Get Out of It?: A Joint Visitor Cluster Analysis and Travel Cost Model for Yellowstone National Park

Yellowstone National Park visitor data were obtained from a survey collected for the National Park Service by the Park Studies Unit at the University of Idaho. Travel cost models have been conducted for national parks in the United States; however, this study builds on these studies and investigates how benefits vary by types of visitors who participate in different activities while at the park. Visitor clusters were developed based on activities in which a visitor participated while at the park. The clusters were analyzed and then incorporated into a travel cost model to determine the economic value (consumer surplus) that the different visitor groups received from visiting the park. The model was estimated using a zero-truncated negative binomial regression corrected for endogenous stratification. The travel cost price variable was estimated using both 1/3 and 1/4 the wage rate to test for sensitivity to opportunity cost specification. The average benefit across all visitor cluster groups was estimated at between $235 and $276 per person per trip. However, per trip benefits varied substantially across clusters; from $90 to $103 for the “value picnickers,” to $185–$263 for the “backcountry enthusiasts,” $189–$278 for the “do it all adventurists,” $204–$303 for the “windshield tourists,” and $323–$714 for the “creature comfort” cluster group.     

3M international environmental management system

To meet the changing needs of 3M's expanding worldwide operations, its International Environmental Operations group is striving to enhance and integrate a global environmental management system. When well-designed, such systems not only can function to guarantee compliance with environmental regulations but also serve to help the company reap the benefits of going “beyond compliance.” They can also prepare facilities to meet the requirements of international standards, such as ISO 14000 or EMAS. An Environmental Management System (EMS) is a necessary step toward achieving sustainable development and gaining competitive advantage in the global marketplace. The challenge of constructing such a system can seem daunting to a multinational company confronted with the spectrum of regional environmental regulations/directives and its own diversity of business and social cultures. This article describes the development and implementation of the 3M International Environmental Operations global EMS initiative.     

Wildfire effects on hiking and biking demand in New Mexico: a travel cost study

We use a travel cost model to test the effects of wild and prescribed fire on visitation by hikers and mountain bikers in New Mexico. Our results indicate that net benefits for mountain bikers is $150 per trip and that they take an average of 6.2 trips per year. Hikers take 2.8 trips per year with individual net benefits per trip of $130. Both hikers' and mountain bikers' demand functions react adversely to prescribed burning. Net benefits for both groups fall as areas recover from prescribed burns. Because both visitation and annual recreation benefits decrease to these two types of visitors, this gives rise to multiple use costs associated with prescribed burning. With respect to wildfire, hikers and mountain bikers both exhibit decreased visitation as areas recover from wildfires, however, only hikers indicate an increase in per trip net benefits. Bikers' demand effectively drops to zero. These results differ from previous findings in the literature and have implications for efficient implementation of the National Fire Plan and whether prescribed burning is a cost effective tool for multiple use management of National Forests. Specifically, that fire and recreation managers cannot expect recreation users to react similarly to fire across recreation activities, or different geographic regions. What is cost effective in one region may not be so in another.     

Modeling Energy Savings from Urban Shade Trees: An Assessment of the CITYgreen® Energy Conservation Module

CITYgreen® software has become a commonly used tool to quantify the benefits of urban shade trees. Despite its frequent use, little research has been conducted to validate results of the CITYgreen energy conservation module. The first objective of this study is to perform a familiar application of CITYgreen software to predict the potential energy savings contribution of existing tree canopies in residential neighborhoods during peak cooling summer months. Unlike previous studies utilizing CITYgreen, this study also seeks to assess the software’s performance by comparing model results (i.e., predicted energy savings) with actual savings (i.e., savings derived directly from energy consumption data provided by the electric utility provider). Homeowners in an older neighborhood with established trees were found to use less energy for air-conditioning than homeowners in a recently developed site. Results from the assessment of model performance indicated that CITYgreen more accurately estimated the energy savings in the highly vegetated, older neighborhood.     

The link between 'green' and economic success: environmental management as the crucial trigger between environmental and economic performance

The link between environmental and economic performance has been widely debated in the literature for the last ten to fifteen years. One view is that improved environmental performance mainly causes extra costs for the firm and thus reduces profitability. However, also the opposite has been argued for: improved environmental performance would induce cost savings and increase sales and thus improve economic performance. Theoretical and empirical research have provided arguments for both positions and have not been conclusive so far. This article discusses reasons for the different views and the differences in empirical research and presents a theoretical framework to explain the coexistence of the conflicting views. It is argued that not merely the level of environmental performance, but mainly the kind of environmental management with which a certain level is achieved, influences the economic outcome. The model presented provides implications for both empirical research and company management in practice. Research and business practice should focus less on general correlations and more on causal relationships of eco-efficiency, i.e. the effect of different environmental management approaches on economic performance.     

THE ECONOMIC VALUE OF GROUND WATER RECHARGE FOR IRRIGATION USE1

ABSTRACT: Artificial recharge as a means of augmenting water sup plies for irrigation is a management alternative which policy makers in ground water decline areas are beginning to consider seriously. A conceptual model is developed to evaluate the economic benefits from ground water recharge under conditions where the major water use is irrigation. The methodology presented separates recharge benefits into two components: pumping cost savings and aquifer extension benefits. This model is then applied to a Nebraska case to approximate the value of recharge benefits as a function of aquifer response. discount rate, and commodity prices. It was found that recharge benefits vary from less than $2 to over $6 an acre foot recharged.     

Using triple bottom line metrics and multi-criteria methodology in corporate settings

With the growing importance of environmental sustainability in the corporate sector, businesses are compelled to progress from assessing and benchmarking their environmental impact to making decisions on how to prioritize impact reduction alternatives. Most often, business decisions are driven by financial metrics, but with sustainability improvements becoming a business goal, it is also important to assess metrics from environmental and social spheres; nevertheless, practically and systematically performing such an assessment is challenging. We present an application of a multi-criteria decision analysis (MCDA) method that addresses the aforementioned challenges in a corporate setting. Our case study company – one of the largest inland marine freight carriers in the United States – promotes a business culture focused on financially viable, yet socially and environmentally responsible solutions. Thus, we combine life cycle analysis (LCA), financial calculation methods, and corporate surveys to quantify environmental, economic, and social performance measures, respectively. Multiattribute utility theory is integrated with analytic hierarchy processes (AHPs) and fuzzy analysis to create a carefully designed framework for corporations with diverse groups of stakeholders. With company leadership, implementation is feasible and successful at prioritizing alternatives among diverse stakeholders. The process provides a platform for negotiation and promotes discussions on decision drivers. The use of MCDA methodologies promoted the inclusion of a suite of metrics that aligned with the company's sense of social and environmental responsibility, generating an in-depth analysis of the alternatives that factored in other things besides economics. Return-on-investments (ROI) calculations, the typical approach used in the corporate setting, would have required significantly less time and effort from the company, but the results of our MCDA application indicated that inclusion of triple bottom line metrics delve deeper into stakeholder preferences. Thus, our case study company gained a holistic view of the candidate alternatives, in addition to creating a platform for structured discussions about company goals and priorities.     

Mining and social development: Refocusing community investment using multi-criteria decision analysis

This paper addresses the question: How can mining companies assess social investment projects so that projects create value for the company and communities in which they operate? Mining companies are still wrestling with the limits of their responsibility in relation to social development even though they accept the business case for community investment at a general level. Fully aware of the practical hazards involved in taking an active role in facilitating local development, companies increasingly avoid methods that are overly paternalistic or assume the functions of the national or local governments. Gaining senior management's commitment to long-term social projects, which are characterised by uncertainty and complexity, is made easier if projects are shown to benefit the site's strategic goals. Case study research on large global mining companies, including interviews with social investment decision makers, has assisted in developing a Social Investment Decision Analysis Tool (SIDAT), a decision model for evaluating social projects. Multi-criteria decision analysis techniques integrating business planning processes with social impact assessment have proved useful in assisting mining companies think beyond seeking reputational benefits, to how they can meet their business goals and contribute to sustainable development.     

The role of new technologies in reducing energy demand

Energy efficiency is often stated to be the most cost-effective measure for satisfying our energy demand with minimal environmental damage. However, the potential energy savings attainable in 'the real world' are frequently overestimated, as is shown in an industrial case study of the glass industry. Nevertheless, there are significant energy savings to be realized, and the role of new technologies in this is important. However, the key to the effective use of new technology for improved energy efficiency is good management and. for best effect, it must be integrated into the normal resource management activities of a company.     

Smart meter data and equitable energy transitions – can cities play a role?

ABSTRACT

The ability of smart cities to address multiple priorities is currently receiving a great deal of attention from governments, industry and academia; however, there are relatively few explorations of how smart cities will be enacted and the equity implications of various elements of the agenda. This paper aims to begin to address this by considering the case of smart meter data in Great Britain and reviewing the potential for public interest benefits to be realised at both a national and city-scale. In order to interrogate how societal benefits of smart metering might be enabled or constrained at different scales, both transition management approaches to understanding the intricacies of transforming socio-technical systems, and urban governance literatures which explore the problems in aligning “smart” and “sustainable” agendas, are engaged with. The case suggests that there is great potential for smart meter data to deliver public interest benefits and in doing so contribute to equity in energy transitions through promoting the accrual of benefits to collective rather than solely individual or commercial interests. Despite this, under the current smart metering framework city-scale actors are largely excluded from utilising smart metering data unless they partner with a large incumbent company. This suggests that the configuration of national smart metering arrangements could be further embedding a marketised approach to smart cities and demonstrates the complex interlinking of socio-political processes operating across multiple scales in energy transitions.     

基于价值创造视角的公司水风险管理研究

随着全球水资源供应不确定性与需求竞争性的加剧,水资源问题已从单纯的环境问题转化为经济问题,水风险逐渐与商业风险挂钩,公司面临的水风险不断上升。公司面临着物理风险、监管风险和声誉风险等水风险,公司水价值体现在业务连续性、经营牌照、声誉与品牌价值和创新价值等无形资产中。水风险与水价值二者相互联系又相互影响,通过公司水价值与水风险评估框架,了解区分水价值的不同方法,明确风险和不确定性如何影响水的价值,并利用水工具评估和管理公司所面临的水风险以及水对公司价值的影响,帮助公司化解其所面临的水风险,实现从公司水风险管理到价值创造的转变。     

基于网络团购的民族地区旅行社电子商务发展研究

网络团购已经逐渐发展成为一种新兴的电子商务模式,团购产品的覆盖范围也已非常广泛.揭示了民族地区旅行社电子商务发展与网络团购的内在相关性和作用机理,并探讨了适合民族地区旅行社电子商务发展的网络团购模式,提出了发展民族地区旅行社电子商务的思路与对策.     

Minimising waste in the food and drink sector: using the business club approach to facilitate training and organisational development

The aim of the East Anglian Waste Minimisation in the Food And Drink Industry Project was to develop waste minimisation capability in food and drink sector companies by providing a structured training programme and consultancy support to participating members of a business club. The business club forum provided the structure within which interactive training and development sessions were delivered. Expertise and assistance in implementing waste minimisation and waste management programmes was given to member companies at their sites.The project resulted in pound 1,800,000 per annum of identified savings with pound 1,100,000 of verified savings already achieved. Training and development contributed fundamentally to these project outcomes and achievements.The structured training package used three different approaches or methods. Teaching and workshop sessions were used to present interactive training on waste minimisation practice. These were supplemented by interactive 'report-back' sessions where the 'project champions' presented progress reports to the club on waste minimisation at their sites.An overview of the business club approach is described, together with an account of the successes and challenges of applying a structured training and development programme and the barriers to waste minimisation that were overcome. Training effectiveness was measured according to reaction, learning, application and impact.     

Distributed travel time savings of a multiscale transportation access management program

Access management in transportation planning can save travel time, reduce crashes, and increase route capacities. The planning literature suggests a need for performance metrics and a decision-aiding framework to guide access management programs across large corridor networks and diverse time horizons. This paper describes a quantitative framework to support access management programs, applying multicriteria analysis and cost-benefit analysis with parameter uncertainties. The metrics used to assess relative priorities at existing access points include the following: travel time delay index, traffic exposure, value of time, and costs of typical access management activities. Uncertain parameters that influence the estimates of the potential benefits and costs are identified and treated via a numerical interval analysis. The framework is demonstrated at several geographic scales and locations including 7,000 km of highway arterials of a 110,000 square-kilometer region and several sub-regions. The results assist decision makers to identify route segments that should be addressed sooner by eliciting additional information, reserving right-of-way, closing access points, planning new alignments, facilitating development proffers, etc. The approach is transferable to other topics involving resource allocation for preservation and improvement of multiscale infrastructure systems.     

Air pollution control by economic incentives in the U.S.: Policy,problems, and progress

This paper deals with cost-effectiveness of the economic incentive policies of the bubble concept and offset credits relative to the policy of direct regulations of air emissions. The second section discusses single- and multi-plant bubbles, their adoption across regions and industries, the methods used to control emissions and the extent of savings in costs. We conclude that despite the delay resulting from duplication of review of state implementation plans by both the state and the Environmental Protection Agency, the required technological commands, the requirement to model air quality and the restrictions to permit bubbling only in the attainment areas, the policy is progressing successfully and should be encouraged by eliminating the restrictions. The third section analyzes the policy of emission offset credit, trading, and banking which can permit economic growth in nonattainment areas. It reviews the available literature, which deals only with aggregation of offsets across cities instead of individual offset trades. Progress by individual offset trades is analyzed in terms of the number of offsets, their acceptance across regions, the extent of reductions in emissions, and the classification of the offsets into internal and external trades. Comparison of estimated capital costs and prices of individual offsets with direct regulation costs reveals that the former are economical. We conclude that despite the problems of high tradeoff ratios, the short and uncertain life of the emission offset credits and the technological commands, the policy is progressing successfully and should be encouraged further by relaxing restrictions.This paper represents the author's personal views. Neither the Commission nor any member of its staff is in any way responsible for these views.