PNNL

Abstract

This paper examines the forces influencing energy efficiency decision making in the industrial sector and suggests effective means of changing old energy habits and buying patterns. Important aspects of this issue include ownership, organizational structure, financial performance, compensation, barter, and taxation. Tax policy provides an incentive to conduct business through barter deals because such transactions can evade high taxes. Thus, a plant may not want to reduce energy purchased through barter agreements because barter can serve as a tax shelter. The paper also describes efforts at several Ukrainian manufacturers to improve energy efficiency. Specifically, the paper draws on work conducted at a glass plant, a coke and chemical manufacturer, a steel cable factory, a food processing plant, and a small metallurgical facility and provides case studies of three of these. The last section of the paper outlines strategies for encouraging industrial plants to become more efficient, based on the experience at these plants.