Industrial electricity consumption efficiency and energy policy in Japan

This study analyzes the potential for energy savings by identifying inefficiencies in electricity use and their determinants in the Japanese industrial sector. Specifically, we used stochastic frontier analysis to estimate inefficiencies in electricity consumption based on data obtained from electric power companies. We identified significant determinants of electricity consumption efficiency and that changes in national energy policy following the Great East Japan Earthquake changed electricity consumption behavior. The contribution of this study is that its findings can be used to improve the cost-effectiveness of policies aimed at improving energy efficiency.

Automated summary

This study examines the potential for energy savings in the Japanese industrial sector by identifying inefficiencies in electricity consumption and their determinants. Through stochastic frontier analysis, the study estimates the level of inefficiency in electricity consumption using data from electric power companies. The study also identifies significant factors influencing electricity consumption efficiency and highlights the impact of changes in national energy policy following the Great East Japan Earthquake on electricity consumption behavior. The findings of this study have important implications for improving the cost-effectiveness of energy efficiency policies.