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Understanding Embedded Energy: Analyzing Energy Demand from a Consumption Perspective

This paper explores the concept of embedded energy, defined as the total commercial energy used in producing, transporting, and disposing of a product. By employing Input-Output Analysis, we assess energy demand derived from consumption patterns across various sectors, such as agriculture, industry, and households. The analysis highlights key drivers of energy demand and suggests a shift toward a consumption-based viewpoint, emphasizing the importance of understanding hidden energy in goods and services. The findings aim to inform consumers and policymakers about energy conservation strategies.

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Understanding Embedded Energy: Analyzing Energy Demand from a Consumption Perspective

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  1. AssessingembeddedenergywithInput-Output Analysis…understandingenergydemandfrom a consumptionperspective

  2. Definition „Embeddedenergyisthecommercialenergythat was used in thework to makeanyproduct, bring it to themarket and dispose of it“

  3. Content • Introduction and objectives • Input-Output methodology • Results • Conclusions

  4. 1. Growingenergydemand Source: World Energy Outlook 2010, International Energy Agency Whatarethedrivers of ourgrowingenergydemand???

  5. 1. Drivers forenergydemand TheEconomy Agriculture Power sector • Consumptionpatterns • Consumptionlevels • Values Industry Transport Buildings Households Demandforgoods and services of people

  6. 1. Objectives • Change of viewpoint – consumptionbasedview Total demandforenergycanbetraced back to theconsumption of goods and services • Understandingdriversfrom a consumptionperspective • Provideinformationforconsumers and policymakers

  7. 1. Research Topic – Embedded Energy • Whatistheenergyrequirementfortheconsumption of goods and services? • Input Output Analysis

  8. 2. Input Output Model Domesticeconomy Output Input Imports from Rest of the World to domesticeconomy. ROW - economy

  9. 2. Input Output Model domesticproductionimportedintermediatesimported final goods

  10. 3. Embedded Energy in Austria 2007

  11. 3. Embedded Energy in Austria 2007 • Includesintermediategoods: • constructionwork • sewage and disposalservices • waterdistribution

  12. 3. Direct vs. Embedded Energy

  13. 3. Direct vs. Embedded Energy

  14. 3. Direct vs. Embedded Energy Global energydemandassumingAustrianconsumptionpatterns (govermentspending and investmentexcluded) ~ 200,000TWh Total Primaryenergydemand 2008 according to „World Energy Outlook“: 143,000TWh

  15. 4. Conclusions I • Itmakes sense to includeEmbeddedenergy in householdstudies • IfthewholeworldhadAustrianconsumptionlevelswewouldbe in trouble

  16. 4. Conclusions II • Input Output Analysis canbeused to provide a consumptionbasedview • High aggregationlevel and restriction to monetaryvaluesaredrawbacks • Fair method to identifyresponsibilityforenergydemand • Publication of such datawouldbehelpful to createawareness • Relevant dataforpolicymakers

  17. Theeasiest way to conserveenergy and reduceemissionsis to consumeless!!! Thanksforyourattention!!! Contact: hartner@eeg.tuwien.ac.at

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