Statistical Analysis of Energy Consumption in US Manufacturing
Abstract
This study examines aggregate energy consumption data from the US manufacturing sector
to identify drivers of energy efficiency in industrial processes. In particular, the
study explores whether the presence of high regional electricity prices induces decision-makers
to operate more efficiently. Regional energy utilization intensity (EUI) figures indeed
indicate a correlation between energy efficiency and electricity prices, but several
outliers defy this trend and provide insights into the idiosyncrasies of certain industries
which insulate them from internalizing the financial impact of excessive energy consumption,
even in the presence of high electricity prices. Namely, high EUI figures are correlated
with onsite generation and processes reliant upon fuels as opposed to electricity.
Location along the supply chain also impacts apparent energy consumption with low-margin
commodities resulting in higher EUI due to their lower denominators in the determining
formula (MJs per dollar of product shipped) and vice versa for higher-margin products.
In addition to this mathematical quirk, the study identifies other shortcomings of
the data, discussing their implications and options for their rectification.
Type
Master's projectPermalink
https://hdl.handle.net/10161/5369Citation
Kroon, Michael (2012). Statistical Analysis of Energy Consumption in US Manufacturing. Master's project, Duke University. Retrieved from https://hdl.handle.net/10161/5369.Collections
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