Economic efficiency evaluation of energy efficiency investments
Economic Annals-XXI: Volume 135, Issue 11-12(1), Pages: 103-105
Citation information:
Belinska, Ya., & Chaplygin, O. (2013). Economic efficiency evaluation of energy efficiency investments. Economic Annals-XXI, 11-12(1), 103-105. https://ea21journal.world/index.php/ea-v135-26/
Yanina Belinska
D.Sc. (Economics),
Professor,
National University of the State Tax Service of Ukraine
31 Karl Marx St., Irpin town, 08201, Kyiv Region, Ukraine
yanina@nusta.com.ua
Olexandr Chaplygin
PhD Seeker,
National University of the State Tax Service of Ukraine
31 Karl Marx St., Irpin town, 08201, Kyiv Region, Ukraine
chaplygin84@gmail.com
Economic efficiency evaluation of energy efficiency investments
Abstract. Households in Ukraine highly lack energy efficiency, and one of the main purposes of reforms carried out in central heating supply sector is to increase energy efficiency. Consequently, it will end up in more efficient usage of energy recourses. Huge losses of energy are related to centralized district heating companies which operate outdated, poorly insulated and often large distribution networks. Also, a significant part of small- and medium-sized boilers feature a low efficiency factor and are on average older than 20 years. As a result, multi-flat residential buildings consume approximately 40% of the country’s heat energy resources. The authors propose evaluation of multi-flat residential buildings heat insulation in terms of its economic efficiency. Using up to date materials and technology in heat isolation will result in about 64% of energy savings. Economic efficiency of the proposed project is provided by less energy consumption for buildings heating. The project will reduce gas consumption and volume of carbon dioxide emissions. Energy efficiency is rightly one of the most pressing priorities of energy policy in Ukraine. However, in contrast to the visibility of the topic, improvements have been marginal and energy usage remains wasteful. The implementation of energy efficiency improvements by households and companies as well as state authorities lacks behind in international comparisons. Further costs of wasteful energy usage become ever more evident in conditions of environmental damage increasing. Efficient consumption of energy and natural resources usage should be in the very interest of individual consumers and companies as well as society. According to energy audits, most of the households have great potential for energy savings, which can be implemented at comparatively low cost. The project proves energy saving measures in national households to be economically reasonable.
Keywords: Energy Efficiency; Ecological Investments; Energy Consumption
JEL Classification: Q30
References
- Schultz, S. (2011). Trends in global energy efficiency. Zurich: ABB.
- Rehbok, W. (2011). Energy law guide. Kyiv: Arzinger.
- International Energy Agency (2012). Ukraine 2012 executive summary. Paris: IEA Publications.
- Cameron, P. (2000). From Principles to Practice: the Kyoto Protocol. Journal of Energy & Natural Resources Law, 18, 1-18.
- Henningsen, C. (2011) Managing Ecological Investment Risk. Green Money Journal, 82, 1-4.
- Bradbrook, A. (1997). A Legislative Framework for Renewable Energy and Energy Conservation. Journal of Energy and Natural Resources Law, 15, 313-337.
- Ottinger, R. (2000). Global Climate Change Kyoto Protocol Implementation: Legal Frameworks for Implementing Clean Energy Solutions. Pace Environmental Law Review, 18, 19-86.
- Stepanenko, V. A. (2010) Energy examination of heat supply system of Zaporizhzhia. Zaporizhzhia: Ekosys (in Ukr.).
Received 08.10.2013