THE IMPACT OF INDUSTRY 4.0 ON MODELLING ENERGY SCENARIOS OF THE DEVELOPING ECONOMIES (original) (raw)

Identification of Energy Efficiency Trends in the Context of the Development of Industry 4.0 Using the Polish Steel Sector as an Example

Energies, 2020

The steel sector is crucial for the national economy of Poland and the global economy. In response to the challenges of the global steel market and the need to increase the sector’s competitiveness, a number of actions have been taken to increase the energy efficiency of steel production. Based on the synthesis of the literature and our own research, we describe the issues related to energy efficiency and the Industry 4.0 concept. The main aim of this paper is to identify energy efficiency trends in enterprises, especially those that focus on increasing the energy efficiency of production processes, and to make recommendations for investment policy for the Polish steel sector in the era of Industry 4.0. To achieve our goals and answer the research question, we used data from 2000–2019 for the Polish steel industry. The calculations and models in this paper were made by using Gretl software. Using direct research, an econometric model was built that verified the hypothesis regarding ...

Industry 4.0 and Renewable Energy Production Nexus: An Empirical Investigation of G20 Countries with Panel Quantile Method

Sustainability, 2023

In line with the fourth industrial revolution, most countries have imposed a variety of regulations or policies for the goals of energy conservation, sustainable development, and industrial transition. Renewable energy production and its production process, which is widely discussed, especially in the context of sustainable energy, has become more important with Industry 4.0. This paper tested the relation among economic growth, renewable electricity generations (% of GDP), Industry 4.0, industrial structure, trade openness, financial development, and research and development expenditure for G20 countries in 2000–2021 by employing a panel quantile regression approach and various panel cointegration tests in addition to investigation of panel Granger causality among the analyzed variables. The variables of industrial structure, trade openness, and financial development were selected as control variables. Since this study is the first study on this topic, it will contribute to the development of the literature by providing resources for future studies about I4.0, renewable energy production, and economic growth. Furthermore, this study will not only contribute to the literature by revealing the theoretical and empirical relationship between these variables but will also shed light on the policies that G20 countries will produce in this regard. According to results, all variables examined have significant causal effects: unidirectional causality from economic growth to Industry 4.0, to research and development, and to renewable energy output and, also, from research and development to renewable energy output. Bidirectional causality and feedback effects between renewable energy and Industry 4.0 are determined. Further, unidirectional causality from industrial structure, from openness to trade, and from financial development to renewable energy output are determined. Results indicate renewable-enhancing effects of Industry 4.0. Keywords: Industry 4.0; renewable energy; economic growth; sustainable economic development; information and communication technologies; research and development; international trade; G20; panel quantile regression; cointegration

A model approach for analysing trends in energy supply and demand at country level: Case study of industrial development in China

Energy Economics, 2007

Ideally, national energy supply and demand choices would be based on comprehensive models and predictions of the energy sources, energy transformations, energy carriers and energy end-uses expected to play major roles into the foreseeable future (20-40 years). However, in many cases, the necessary detailed, high quality, consistent and timely data is not available for such comprehensive models to be constructed, in particular in large and complex developing economies expected to be major energy users in the near future. In the developing countries that are the focus of UNIDO's work, attention has been concentrated on making progress simultaneously on two fronts: (a) a dramatic decrease in energy intensity, particularly in activities linked to industrial production and (b) a major increase in the contribution of local renewable energy to limit growth in fossil fuel use. National policies need to be oriented towards a strict and strategic monitoring of the respective energy matrices with a simultaneous focus on both fronts. Robust assessments of industrial development trends throughout the whole 20-40 year transition phase are needed to achieve both objectives. Until more comprehensive energy-related models can be built up, to overcome the limited availability of data at country level it is proposed that a simple energy supply and demand model analysis consisting of three phases be used for identifying the consistency of future scenarios and corresponding policy requirements. This model analysis, which is a dynamic exercise, consists, first, of an analysis at aggregate level of the current and future national energy matrices; secondly, an analysis of perspectives for decreasing the energy intensity of the most inefficient systems or industrial sectors; and thirdly, an analysis of perspectives for increasing the supply and cost-effectiveness of sustainable energy sources. As an illustration of this model approach, the case

Correlation between Future Energy Systems and Industrial Revolutions

2018

The last two to three centuries have witnessed humongous technological, socio-economic and environmental transformations which have laid precedence to the swift advancements in fields of sciences, engineering, medicine, business, and economics. While researchers focus on the productivity and economic growth potential and how subsequent industrial revolution paved the way for current contemporary lifestyle, very few analogies exist on the relationship between the intervention of the technology used and the implications as per energy management concerns during that period. The authors of this paper examine the impact of the changes in the industrial structure from the first to the third industrial revolution era (Industry 1.0, 2.0, 3.0), premised on the campaigns for cost-effective manufacturing and energy conservation throughput within the time frame, and how it transitioned to existing technological innovations. The article discusses energy issues and performance from the technology...

Estimating energy-augmenting technological change in developing country industries

Energy Economics, 2006

Assumptions regarding the magnitude and direction of energy-related technological change have long been recognized as critical determinants of the outputs and policy conclusions derived from integrated assessment models. Particularly in the case of developing countries, however, empirical analysis of technological change has lagged behind simulation modeling. This paper presents estimates of sectoral productivity trends and energy-augmenting technological change for several energy-intensive industries in India and South Korea, and, for comparison, the United States. The key findings are substantial heterogeneity among both industries and countries, and a number of cases of declining energy efficiency. The results are subject to certain technical qualifications both in regards to the methodology and to the direct comparison to integrated assessment parameterizations. Nevertheless, they highlight the importance of closer attention to the empirical basis for common modeling assumptions.

Characterizing emerging industrial technologies in energy models

2003

Conservation supply curves are a common tool in economic analysis. As such, they provide an important opportunity to include a non-linear representation of technology and technological change in economy-wide models. Because supply curves are closely related to production isoquants, we explore the possibility of using bottom-up technology assessments to inform topdown representations of energy models of the U.S. economy. Based on a recent report by LBNL and ACEEE on emerging industrial technologies within the United States, we have constructed a supply curve for 54 such technologies for the year 2015. Each of the selected technologies has been assessed with respect to energy efficiency characteristics, likely energy savings by 2015, economics, and environmental performance, as well as needs for further development or implementation of the technology. The technical potential for primary energy savings of the 54 identified technologies is equal to 3.54 Quads, or 8.4 percent of the assumed2015 i ndustrial energy consumption. Based on the supply curve, assuming a discount rate of 15 percent and 2015 prices as forecasted in the Annual Energy Outlook2002, we estimate the economic potential to be 2.66 Quads-or 6.3 percent of the assumed forecast consumption for 2015. In addition, we further estimate how much these industrial technologies might contribute to standard reference case projections, and how much additional energy savings might be available assuming a different mix of policies and incentives. Finally, we review the prospects for integrating the findings of this and similar studies into standard economic models. Although further work needs to be completed to provide the necessary link between supply curves and production isoquants, it is hoped that this link will be a useful starting point for discussion with developers of energy-economic models.

FINANCIAL, ECONOMIC AND SUSTAINABLE DEVELOPMENT OF STATES WITHIN THE CONDITIONS OF INDUSTRY 4.0

IAEME Publication, 2020

The article assesses the achievements of sustainable development by EU countries within the conditions of Industry 4.0. It has been determined that the concept of sustainable development achievement is integrated into the development of the technological sector. Achievements of sustainable development do not outpace the rapid development of Industry 4.0. More technologically advanced countries provide higher level of economic growth and prosperity. The growth rate of Greenhouse gas emissions (in CO2 equivalent) in 1990 base year, is rising in advanced countries; herewith, such rate is slowing down in less developed countries. Employment growth in the high-tech and medium-tech sectors of EU countries corresponds to the worst environmental situation. Despite measures to overcome the problems of sustainable development in Vitalii Bashtannyk, Zoriana Buryk, Marianna Kokhan, Tetiana Vlasenko and Vitaliia Skryl http://www.iaeme.com/IJM/index.asp 407 editor@iaeme.com the environmental sphere, in particular, concerning increase volume of financing for activities related to climate change, most EU countries do not ensure an increase in the share of renewable energy in final energy consumption. There are significant differences between countries in terms of environmental taxation: higher level of taxation corresponds to a higher level of expenditure on research and development in a number of countries; there is no such interconnection in the other countries.

Future European energy markets and Industry 4.0 potential in energy transition towards decarbonization

Renewable Energy and Power Quality Journal, 2020

Climate change, economic growth and fossil fuel price volatility are forcing governments and thus society to adopt economical and technical measures in the energy sector to reach sustainability. These actions can be seen as opportunities for the stakeholders that form the energy market and also for new actors that may enter as a consequence of the energy transition that is taking place. In this paper, a description of the energy targets and potential market scenarios in Europe is carried out, together with a review of the policies implemented to achieve these objectives. Within this framework, the possibility of the industry to adopt a crucial role in the development of the new energy market is also analysed. The potential tools for its achievement are also presented, together with some of the techniques and mechanisms that make it feasible. From this study, it can be concluded that the industrial sector will become a major distributed prosumer, providing services to the energy market and facilitating the energy transition towards the decarbonization of the society.