Analysis of the efficiency and structure of energy consumption in the industrial sector in the European Union countries between 1995 and 2019

Abstract

The industrial sector is one of the most important sectors of the global economy, having a huge impact on the development of individual countries and regions. This sector covers a wide and diverse range of activities, which makes it of key importance for the economy of the European Union (EU) countries. As a result, the processes related to energy transformation and climate policy are increasingly connected with the sector in question. The need to improve the competitiveness of the economy and the implementation of climate and energy strategies means that this sector, like the entire EU economy, must rapidly enhance its energy efficiency and the structure of energy consumption. The following paper addresses this problem by presenting the results of a comprehensive study of the structure and volume of energy consumed by this sector in the period between 1995 and 2019. Based on this study, quantitative changes and the structure of energy consumed in this sector in the studied period were determined for the entire EU and its individual countries. The use of the Gini coefficient and the Lorenz curves allowed for the determination of the inequality of energy consumption in the industrial sector. The coefficients of variation and the dynamics of changes in energy consumption, both in total and from individual sources, for the EU countries were also determined. The aim of this part of the study was to indicate directions and the intensity of changes related to the structure and consumption of energy in this sector. In the next stage, groups of similar countries were created and compared in terms of the structure of energy consumed by the industrial sector in 1995 and 2019 (using the Kohonen's neural network). Relationships between the amount of energy consumed by the industrial sector in the entire EU and the basic economic and climate parameters of the economy were also delineated. The energy intensity of this sector and the dynamics of its changes in individual EU countries over the analyzed period were also specified. The results proved a great diversity of the EU countries and the improving energy efficiency and structure of energy consumed by the industrial sector. The research, together with its results, significantly broaden the knowledge of changes in the volume and structure of energy consumption in the industrial sector for the EU countries. The results make it possible to assess the actions of individual countries and the current state of implementation of EU climate and energy policy. They should also be used to develop future assumptions of this policy.

Keywords: Country similarity; Energy efficiency; Energy structure; European Union; Industrial sector.