Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country

Nội dung text: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country

1. International Journal of Energy Economics and Policy ISSN: 2146-4553 available at http: www.econjournals.com International Journal of Energy Economics and Policy, 2021, 11(2), 7-22. Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Le Thanh Tiep1*, Ngo Quang Huan2, Tran Thi Thuy Hong3 1Ho Chi Minh City University of Economics and Finance, Vietnam, 2University of Economics Ho Chi Minh City, Vietnam, 3International School of Business, University of Economics Ho Chi Minh City, Vietnam. *Email: tieplt@uef.edu.vn Received: 04 September 2020 Accepted: 08 December 2020 DOI: ABSTRACT Energy efficiency (ENE) is a growing issue in emerging countries. This study aims to evaluate the impact of ENE on sustainable development (SDE). By this research, we have developed constructed variables that contribute to energy efficiency such as usage behavior (UBE), energy resources (ERE), construction design (CDE), appliances, equipment (AEQ), and maintenance (MCE). We use quantitative technique such as Smart PLS SEM to analyze the data of the small and medium size enterprises (SMEs) of Vietnam in the year 2020. The findings suggest a positive and significant impact of energy efficiency on sustainable development. This contribution has also confirmed the contribution of usage behavior (UBE), energy resources (ERE), construction design (CDE), appliances, equipment (AEQ), and maintenance (MCE) affecting to energy efficiency in emerging country. This study contributes to the literature of energy efficiency and sustainable development of SMEs in emerging country context. The outcomes of this study can be used by entrepreneurs, top management as an attempt to boost the performance of the SMEs in emerging markets by applying energy efficiency measures for sustainable development as a value-added contribution to this research. Keywords: Determinants of Energy Efficiency, Energy Efficiency, Renewable Energy, Sustainable Development, Emerging Country JEL Classifications: Q21, Q25, Q43 1. INTRODUCTION (UNFCCC, 2015). Cristescu et al. (2017) proposed that “the concept of energy efficiency (or optimization of energy consumption) has Energy is an important factor and an integral power of the currently become one of the main concerns of mankind across the socioeconomic growth. However, how to make sustainable globe.” Currently, world economy heavily relies on energy from development is of great concern to stakeholders including non-renewable resources such as coals and oils while those are the economists, entrepreneurs, investors, executives and policymakers main causes that negatively affect the environment, heat up the and so on. According to Ku-Hsieh et al. (2020), “Energy effciency earth and cause climate change as greenhouse gas emission and has long been an important issue to the global economic and pollutants created by use. According to Asarpota and Nadin et al. political theaters.” Besides, Solnứrdal and Foss (2018) argued (2020), world’s energy demand is estimated to increase by around that climate change is one of the most pressing themes of the 21st 1.3% per year through 2040, while energy efficiency decreases century. It challenges the very structure of our global society and and emissions increase. Globally, energy use is the most important covers issues like economics, politics, business management and contributor to greenhouse gas (GHG) emissions (Intergovernmental each individual’s lifestyle choices. According to EIA (2017), the Panel on Climate Change, 2014). Approximately two thirds of generally recognized relationship between energy consumption, GHG emissions come from energy production and consumption, greenhouse gas (GHG) emissions and climate change has making it a central issue in climate change mitigation activities brought energy efficiency into political agendas around the world (International Energy Agency, 2019). Efficient use of energy is This Journal is licensed under a Creative Commons Attribution 4.0 International License International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 7
2. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country considered as one of the important solutions to reduce greenhouse Energy efficiency generally offers many benefits such as reducing gas emissions in the energy sector. Economical and efficient use greenhouse gas emissions, reducing the need for energy imports of energy help reduce pressure on the exploitation, processing and and reducing costs at the household level and across the economy. supply of energy types, helping to improve the efficiency of the As European Climate Foundation (2016), the “Paris Agreement economy, and at the same time helping conserving national energy has addressed a clear signal to stakeholders and investors that resources, protecting the environment and reducing greenhouse the global transition to a low-carbon economy and clean energy gas emissions, contributing to the mitigation of the impacts of is here to stay.” Furthermore, driving towards a low carbon global climate change thereby, solving existing relevant challenges. economy is a clear opportunity for global economy, jobs and Reducing energy use contributes to lower energy costs and can save sustainable growth. There are numerous studies related to energy consumers financial costs. In addition, reducing energy use is also efficiency but the approaches, perspectives and contexts are seen as a major solution to the problem of reducing greenhouse very diverse such as Mrúwczyńska et al. (2018) with “Social gas emissions. Improving energy efficiency in buildings, industrial and infrastructural conditioning of lowering energy costs and processes, and transportation could reduce world energy demand by improving the energy efficiency of buildings in the context of the about a third by 2050 while also helping control energy efficiency local energy policy” for building sector; Chwieduk and Chwieduk in buildings, industrial processes and transportation that control (2020) with “determination of the energy performance of a solar of global greenhouse gas emissions (Sophie, 2006). Another low energy house with regard to aspects of energy efficiency and approach by Bill et al. (2007) that energy efficiency and renewable smartness of the house” which typically household sector; Dato energy are believed to be the twin pillars of sustainable energy (2018) “investment in energy efficiency, adoption of renewable policy. In many countries, energy efficiency is also assessed as energy and household behavior” for household sector; Cini et al. having national security benefits because it can be used to reduce (2017) “Energy Efficiency Projects of Budget Beneficiaries And Its energy imports from abroad and contribute to reducing the rate of Impact On Regional Economy” for economic related; Strielkowski depletion of energy resources. Both strategies must be developed et al. (2019) with “innovative policies for energy efficiency and the at the same time to stabilize and reduce CO2 emissions. Energy use of renewables in households” for household sector; Cristescu efficiency is essential to slowing the growth of energy demand in et al. (2017) with “increasing energy efficiency and optimizing the order to increase the supply of clean energy, possibly reducing the operation of systems that produce clean energy from renewable use of fossil fuels. If the use of energy increases too quickly, the sources”; Stagnitta et al. (2020) with “A complementary approach likelihood of developing renewables decreases. Likewise, unless to traditional energy balances for assessing energy efficiency a clean energy supply becomes rapidly, slowing growth in energy measures in final uses: The case of space heating and cooling”; demand will start to reduce total carbon emissions, reducing the Lenzi et al. (2013) with “From energy balance to energy efficiency carbon content of energy sources is also needed. A sustainable indicators including water losses”; Benavente-Peces (2019) with development of economy therefore requires commitment to energy “On the energy efficiency in the next generation of smart Buildings efficiency and renewable energy. Efficient use of energy has been Supporting technologies and techniques” for building sector; shown to be an economical and efficient strategy in developing Han et al. (2017) with “measuring energy efficiency in China’s an economy without necessarily increasing the cost of energy transport sector” for transport sector. However, research on specific consumption. Energy efficiency and conservation goals should be factors affecting energy efficiency are still unclear. Furthermore, integrated into economic restructuring plans, national technological there is a gap between existing studies and the need for a practical innovation strategic plans and developing strategies to meet the understanding of the role that energy efficiency plays in national country’s sustainable development requirements. Additionally, sustainable development especially in the context of emerging according to Eisenmenger et al. (2020), countries around the world countries like Vietnam, according to the best knowledge of the are more and more dynamic and pay a high attention to sustainable authors. It is therefore essential to have a holistic study related to development by aligning development goals for improving well- energy efficiency to provide a comprehensive understanding to the being, society and economy with ecological goals. The sustainable interested parties of what factors drive energy efficiency and how development goals (SDGs) were adopted in 2015, succeeding the energy efficiency plays a role in national sustainable development. Millennium Development Goals (MDGs). Accordingly, MDGs Moreover, this study focuses on the manufacturing sector with focused on improving well-being in the developing world while expect that deliverable of this study can address specifically “17 SDGs address all countries and aim at reconciling economic relevant issues of a certain sector, moreover, implications can be and social with ecological goals.” According to UN (2015), UN practical and applicable for a certain sector to generate certain Agenda 2030 is perceived as “the most comprehensive global values. According to EIA (2017), the energy consumed by the political effort towards achieving sustainable development.” manufacturing sector accounts for about 50% of the world’s The existing challenges for global sustainability such as climate energy consumption therefore the manufacturing sector is seen as change and biodiversity loss are considered as key drivers of global a core force to focus on improving energy efficiency to mitigate policy initiatives. Climate change and biodiversity loss are current climate change issues. Moreover, reduced energy costs are crucial challenges of the global sustainability that call for urgent action and for industrial companies to maintain competitive advantage lay grounds for international policy (IPCC, 2018; IPBES, 2019). for sustainable development (Hart, 1995; Worrell et al., 2009). Moreover, at the national perspective, using energy efficiently Energy efficiency is globally perceived important because of its brings significant environmental, economic and social benefits by important contributions to society, economy and environment reducing greenhouse gas emissions and other pollutants, limiting those are the key aspects of national sustainable development. climate change, limiting risks due to uncertainties can occur due to 8 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
3. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country fluctuations in fuel prices and exhaustion those enable sustainable addition, EIA (2017) defined that “energy efficiency is the use of development of a nation (Soroka et al., 2019). Therefore, this is technologies that require less energy to perform the same function”. once again confirmed that a comprehensive study of the factors Considering energy efficiency, according to International Energy affecting energy efficiency for manufacturing sector is essential. Agency (2014), it can be said that energy consumption is more In addition, research that covers the role of energy efficiency in efficient if more services produced with the same energy input or sustainable development is crucial for business operators and similar services generated with less energy input. Accordingly, policy-makers towards sustainable development. This research is energy efficiency measures are conceptually divided into two expected to make significant contributions to theory and practice. main categories include “energy-consumption-efficacy-indicator Accordingly, from the theory point of view, authors expect that this “(ECEI) and “energy-economic-efficiency-estimate” (EEEE). study’s contribution is inclusive of (1) Comprehensive knowledge Additionally, Stagnitta et al. (2020) defined that energy efficiency of energy efficiency; (2) Determinants of energy efficiency describes the ratio between the benefits gained and the energy used. in manufacturing sector in emerging country; (3) Influencing Irrek et al. (2020) distinguish different approaches concerning level of each factor to energy efficiency of manufacturing firm; energy efficiency such as macro-economic; energy conversion (4) The importance of energy efficiency for economy, society and between supply and provision and end use on the demand side and environment; (5) Prospects of energy efficiency to the sustainable energy efforts of the human body in household production of the development at the firm perspective and national perspective; caring economy. Oikonomou et al. (2009) define effciency as the Additionally, from the practice point of view, contributions of this ratio between energy input and output services that can be modified study is expected to be inclusive of (1) For management level of with technical improvements (e.g., technology substitution) and manufacturing firms to have practical and clear strategy for energy differentiate it from the concept of energy saving, linked to human management and (2) appropriate actions and behaviors based on behavior. Furthermore, Patterson (1996) defined set of indicators the defined determinants of energy efficiency for improving energy used to measure energy efficiency from a physical and economic efficiency; (3) For policy makers to have appropriate policies to perspective, focusing on the energy consumption caused by each encourage manufacturing enterprises to improve energy efficiency segment of the national economy, concluding that more attention in their production and business activities; (4) For economists, needs to be given by policy analysts to manage this concept. investors or business owners to understand the value of improving While Tanaka (2008) explored different ways to measure energy energy efficiency for businesses, society and environment to efficiency performance: absolute energy consumption, energy make the necessary investment towards sustainable development. intensity and the discusion of a specific energy-saving technology These contributions are perceived very important for sustainable or thermal efficiency. Besides that, Haas (1997) defined energy development in many ways. efficiency indicators for the residential sector, considering key factors for their normalization and comparison, concluding the The objectives of this study are therefore subjected to these need for more disaggregated indicators and lifestyle studies. research questions (1) “What are the determinants for energy In that sense, Pộrez-Lombard et al. (2012) revised the main efficiency in emerging country like Vietnam context?” (2) “How methodological problems for the construction of energy effciency does each factor effect on energy efficiency?” (3) “How to enhance indicators and propose a sequence of actions to tackle these energy efficiency in Vietnam?” (4) “How energy efficiency impacts problems in an ordered fashion: establishing the service quality, sustainable development in Vietnam?” and (5) What are the identifying aggregation levels on the effciency pyramid, defining a practical applications to be implemented for achieving the defined magnitude for consumption measurement and choosing a suitable values in emerging countries like Vietnam? magnitude to quantify the service provided. The most widespread energy efficiency indicator is the energy intensity of a country, This study structure starts with abstract which is designed as a defined as the primary energy needed to generate a unit of gross condensed content of this research. Followed by introduction domestic product (International Energy Agency, 2018). Moreover, part which presented overall about the research scope and the according to Solnứrdal and Foss (2018), energy efficiency can be reasons for this study. The main body of this study includes achieved from “technological improvements” (Wang et al., 2017), different sections presented in order such as literature review “improved supply chain management” (Marchi and Zanoni, 2017), for reviewing relevant studies, research model and hypothesis, “implementation of environmental management systems (EMS)” research methodology, results and discussion, conclusion and (Zobel et al., 2016), “environmental regulation” (Lin et al., 2017), limitation. The last part is the references. and “economic motives” (Worrell et al., 2009)”. 2. LITERATURE REVIEW 2.2 Factors that Impact on Energy Efficiency According to Chwieduk and Chwieduk (2020), design and 2.1 Energy Efficiency (ENE) construct of building are perceived as important for saving energy The concept of energy efficiency is diverse depending on or use energy efficiently. The cleverness of the building’s design perspectives, approaches, contexts and characteristics of research and architecture demonstrates its ability to optimize the ambient subjects. According to Ku-Hsieh et al. (2020), “Energy efficiency surrounding to minimize energy demands for space heating or space is a conceptual term that is commonly used across a wide range cooling, simultaneously being able to utilize renewable energy and of areas such as engineering, architectural design, production waste heat available to the building. It can be said that intelligence activities, management, organization, economics, and numerous is achieved through the combination of passive and active energy important policy design and development initiatives”. In saving methods, participating in the aspects of architecture, civil International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 9
4. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country engineering and engineering energy. Additionally, construction heat pumps, can deliver greater output for less supplier energy”. materials, electrical equipment and utilities also play a very Energy-saving actions can also be cut measures (Jansson et al., important role in achieving energy efficiency. Avoiding energy 2009), referring to behavior changes such as scheduling, turning needs is the best way to save energy. Energy saving is implied off lights, cutting down on heating or air conditioning and turn off to be associated with environmental improvement through the standby. Saving energy helps reduce greenhouse gas emissions. reduction of greenhouse gas emissions as the main contributor In an International Energy Agency (IEA, 2008a) policy scenario, to environmental pollution and climate change. Greenhouse gas 72% of global CO2 emissions reductions between 2010 and 2020 emissions generated during the process of energy production will come from improved energy efficiency (Knittel et al., 2014). using traditional energy sources which is known as fossil fuels. Energy efficiency measures associate with renewable energy The EU directive promotes the idea of using near-zero energy adoption in the sense that the former reduces energy demand of for new buildings and stimulates the transformation of existing fossil fuels so that the latter can further cut future GHG emissions refurbished buildings into near-zero ones. Energy savings in (RENS21, 2014). Gerpott et al. (2010) found that environmental buildings have been supported by other EU regulatory frameworks, and social attitudes have a strong influence on consumers and their mainly under the EU directive on energy efficiency. The near-zero tendency to use green electricity. energy buildings (NZEB) conceptually use almost no energy so they are very energy efficient. The low amount of energy that these Moreover, Strielkowski et al. (2019) had another approach on buildings require for their efficient use comes mainly from the use energy efficiency by determining that “renewable energy sources of renewable energy sources (Energy Efficiency Directive, 2012). (RES) are gradually becoming one of the key elements in the In addition, any installation must always be adapted to certain process of achieving energy efficiency worldwide”. Energy climate conditions, simultaneously reliable and high efficient efficiency measures is perceived to reduce energy consumption energy and equipment installation, including the heat recovery and save on electricity bills, as well as to reduce the negative ventilation system to optimize complementarities for maximizing environmental impact of electricity generation (Schandl et al., efficiency. Such measures have caused significant reduction of the 2016; Kuzmin et al., 2019). Reducing energy consumption will final energy demand. In addition, adoption of renewable energy reduce costs and could lead to financial savings for consumers systems has also reduced the consumption of fossil fuel-based if the energy savings offset the additional costs associated with primary energy. Another important aspect that is necessary for implementing energy efficient technologies. In many countries, achieving energy savings is the intelligence of users. Energy energy efficiency is also recognized as a national security benefit, consumption generally depends on user behavior. It can be said as it can be used to reduce energy imports from abroad and can that users basically want to save energy as it’s related to the cost slow the rate of energy consumption when domestic energy of using that directly effecting to them on the economic point of is running depleted (Strielkowski et al., 2019). Furthermore, view from both personal perspectives and corporate perspectives according to Stagnitta et al. (2020), three considerable and possible whose are majorly related to energy consumption. From a personal scenarios for energy efficiency are (1) heating, ventilation and air point of view on costs, saving energy helps to save living costs, conditioning (HVAC) appliance efficiency upgrading; (2) wall thereby reducing financial pressure and improving the quality of and ceiling insulation; and (3) a combination of both (1) and (2). life. While from a business point of view on economic efficiency, Accordingly, the results show that scenario one helps save 52% energy efficiency improves firm’s performance as a way of of energy by improving equipment efficiency and substitute increasing operational efficiency by using fewer resources but still energy carrier; scenario two generates 38% saving of energy achieving the set goals. In addition, saving the cost of production by improving efficiency by wall and ceiling insulation while and cost of business operation can help reduce the cost of products scenario three saves 47% by combining equipment efficiency and services, increase profitability or achieve price competition improvement, energy carrier substitution and wall and ceiling against competitors (Masoso and Grobler, 2010). insulation. Another approach was taken by Solnứrdal and Foss (2018) for the motivating drivers for energy efficiency. The In addition, Mrúwczyńska et al. (2018) defined that energy findings was majorly organizational related; economic related; efficiency depends on many factors, such as climate, building market related and policy instruments related. According to Boyd design, materials, technology, energy carriers, how heat is applied and Curtis (2014), management practices in general impact the and the tightness of bulk heads, but also depends on national and energy efficiency of manufacturing firm. Moreover, according local policies (Gorbacheva and Sovacool 2015). The determinants to Martin et al. (2012) and Bloom et al. (2010), management of energy use vary depending on perceptions of each user, practices includes two categories which are “generic management however, in general it can be said that financial factor play an practices” and “climate friendly management practices” that both important role in influencing behavior of energy use, thus it should has positive impact on energy efficiency of firms. From the firm- be considered in any strategy for increasing energy efficiency. level perspective, both the individual manager’s involvement and Simultaneously, it is important to consider public awareness and management practices influence firms’ energy efficiency. This willingness to change their behavior in a more positive way to gain includes managers’ perception and sensitivity to environmental efficient use of energy (Asadi et al., 2014). Moreover, according to problems (Kostka et al., 2013); their ambitions (Thollander Dato (2018), there are different ways to improve energy efficiency et al., 2008) and commitment (Chiaroni et al., 2016). It is also such as (1) “innovation can lead to the equal or greater output with important for top managers to participate in energy efficiency less energy”; (2) “cutting out wasted energy reduces energy needed projects because without such individual involvement, managers while maintaining output” and (3) “heating technologies, such as can consider energy efficiency improvement is secondary in 10 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
5. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country comparison to other investments (Apeaning and Thollander, 2013). and future generations, taken together, does not decline over In addition, firm with a clear energy strategy can stimulate energy time”. While Moure-Eraso (2003) had different approach for efficiency in firm (Cagno et al., 2015). Furthermore, it is possible sustainable development by uncovering the concept of sustainable that those with a dedicated environmental manager will be more development model which include three aspects such as (1) state likely to enter into voluntary environmental agreements, through power; (2) social power and (3) necessity of a concrete roadmap for their energy goals and monitor their energy use compared to firm action. Accordingly, state power is conceptually defined towards who do not have environmental manager (Martin et al., 2012). political perception while social power is conceptually defined where “social community and environmental factors are considered The above reviews show that researches on energy efficiency simultaneously and with the same priority of economic factors, have been taken approach in a diverse way. However, for the cultural transformation”; and roadmap for action is conceptually Vietnam context, authors hypothesized the determinants of energy defined as “The premium that all societies place in living in efficiency and its relationships with energy efficiency as follows: a clean environment is indeed global. Poor and rich countries H1: Using energy efficient technologies positively impact on consider it an imperative. The United Nations has understood this energy efficiency human desire and has been able to articulate through documents H2: Energy consumption initiatives positively impact on energy and declarations this universal desire (Brundtland, 1987; UNEP, efficiency 1992).” Moreover, Strandberg and Brandt (2001) defined that the H3: Construction and design positively impact on energy concept of sustainable development is quite complex as it interacts efficiency with at least four separate systems includes (1) “ecosystem H4: Appliances and equipment positively impact on energy function and change”; (2) “economic performance and change”; efficiency (3) “technological performance and change” and (4) “social H5: Management practices positively impact on energy efficiency . performance and change”. In overall, it’s existing in current literature that energy efficiency has positive significant impact 2.3 Energy Efficiency (ENE) and Sustainable on sustainable development at both organizational and national Development (SDE) perspectives, however, in this study, authors focus on national level Sustainable development was defined as “the development as a macro approach on sustainable development. that meets the needs of the present without compromising the ability of future generation to meet their own needs” (World Table 1 below sets out the findings and limitations of recent studies Commission on Environment and Development, 1987). Energy on energy efficiency related. efficiency is globally perceived very important to national sustainable development. According to Soroka et al. (2019), Table 2 presents the theories related to energy efficiency and energy efficiency offers significant benefits for environment, sustainable development in this research context. economy and society by reducing greenhouse gas emissions and other pollutants, limiting climate change, limiting risks due to 3. RESEARCH MODEL AND HYPOTHESIS uncertainties that may happen due to fuel’s price fluctuations and source depletion those are for driving national sustainable As shown in the Table 1, studies on energy efficiency were development. In addition, according to REN21 (2016), “There is taken from different perspectives, different context and different growing recognition worldwide that energy efficiency can play prospect expectations. However, it mainly focused on either energy a key role in reducing energy-related emissions and that it can efficiency and sustainable development or ways for increasing provide multiple economy-wide benefit– such as enhanced energy energy efficiency of drivers for energy efficiency. None of these security, reduced fuel poverty and improved public health”. studies specifically focused on a holistic model that accounts Moreover, Dato (2018) determined that energy efficiency can play for determinants for energy efficiency and the effects of energy a key role in reducing the energy intensity of economic activity, efficiency on sustainable development. In addition, there is a avoiding the need for significant new supplies, while reducing lack of studies for manufacturing sector while the manufacturing dependence on imported fuels and potential fluctuations in energy sector is seen as a core force to focus on improving energy prices (UNEP, 2009). While Ku-Hsieh et al. (2020) defined that efficiency to mitigate climate change issues, especially in emerging “Energy efficiency is undoubtedly a critical issue concerning the country. Moreover, reduced energy costs are crucial for industrial sustainability of civilization”. According to IEA (2012), energy companies to maintain competitive advantage for sustainable efficiency have significant potential effects on outputs between development (Hart, 1995; Worrell et al., 2009) and at the national 0.8% and 1.3% of GDP. perspective of sustainable development (Soroka et al., 2019). In overall, authors perceive that it’s crucial to have a holistic The relationship between energy efficiency and sustainable research on factors that impact on the energy efficiency and the development is therefore hypothesized as follow: roles of energy efficiency on sustainable development. Thus, the H6: Energy efficiency positively impact on sustainable research model of this paper is identified as Figure 1 below. This development. model used to explore the relationships between energy efficiency (ENE) and sustainable development (SDE), importantly with the 2.4 Sustainable Development (SDE) variables as factors that impact on ENE includes (1) Using optimal According to Dasgupta (2007), “sustainable development is an technologies (UBE); (2) Energy resource alternative (ERE); economic programme along which average well-being of present (3) Construction design (CDE); (4) Appliances and equipment International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 11
6. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Table 1: Studies on energy efficiency Author Context Methodology Findings/Contributions Limitation Iazzolino et al. Research topic was carried Empirical research on a Efficient instrument to promote energy ESCOs industry (2016) out for energy efficiency and sample of 68 Italian ESCOs, savings. This study provides an important in Italy so the sustainable development. analysis was carried out on description of the energy service companies finding might Focuses on the financial the balance sheet indicators (ESCO) industry in Italy from a financial not be able to reliability of Energy Service based. standpoint, results highlight the importance represent for Companies (ESCO) industry of their work to promote sustainable other industries in Italy by using the Z” score development in the territory and strives for and other model and observing the trend contribution related to a still new field in regions. of Z” values from the year Italy. 2010 to the year 2014. Bianca et al. Research topic was carried out The analysis is based on Possible contributions of energy efficiency Focused (2019) for energy efficiency actions and collected energy data and towards sustainable development. approach in only their contributions to sustainable information of energy Initiatives of University of Passo Fundo three initiatives development. Focuses recent efficiency actions applied at towards energy efficiency focused in towards energy actions of energy efficiency the university. lightening, photovoltaic solar power efficiency at UPF implemented by University of generation and free energy market. in Brazil. Passo Fundo, a higher education institution located in the south of Brazil, and their contributions to Goal 7. Yang et al. Research topic was about Empirical analysis was TFEE of energy investment by state-owned Using single- (2017) energy efficiency, ownership conducted using the and non-state-owned economics is found factor energy structure and sustainable DEA-SBM Model to low from optimal level. Moreover, it’s efficiency development. Focuses on the estimate the Total Factor different from cities, provinces in China, indicators, in impact of difference energy Energy Efficiency (TFEE) especially the most developed cities, China. investment behaviors between of investment by entities provinces with the most strict environment China’s state-owned entities with different ownership regulation have kept an optimal record of and non-state-owned business structures (state-owned and TFEE which represents the highest energy on China’s Total Factor non-state-owned) efficiency level in China. Energy Efficiency (TFEE) and sustainable development from 2003 to 2014. Chwieduk and Focuses on determining the Adopted standard methods Determinants for energy efficiency Focused and Chwieduk energy efficiency of a low solar of determination of the associated to home smartness factors. approach, (2020) home based on energy saving energy performance of household sector and smart home aspects. buildings. Mrúwczyńska Focuses on social and Data were obtained from Contribution to current knowledge Focused et al. (2018) infrastructure conditions standardized interviews demonstrates the ability to invest approach, to reduce energy costs and with Zielona Gúra, hierarchically, varying for buildings and household sector. improve energy efficiency of Poland inhabitants and neighborhoods, allowing for fair public buildings in the context of the the Town Energy Audit funding. local energy policy. documentation. The data were analyzed using an artificial neural network Dato (2018) Focuses on investing in energy Adopted empirical analysis The first findings is that there are Focused efficiency, renewable energy with information collected alternative or complementary relationships approach, adoption and household by survey on household between the decisions on energy efficiency household sector. behavior from organization characteristics (age, income, investment and renewable energy adoption for economic development education), environmental depending on the threshold of the (OECD) countries. attitudes (environmental cross-effect involved in the consumer’s concerns), and perceptions, environmental motivation. The second etc., using an internet-based one shows that the two decisions are questionnaire. positively related because the unobserved characteristics determine both decisions. The third findings presents the different effects of energy poverty, the issue of incentive division, housing characteristics, commitment and confidence in the two decisions. Finally, household characteristics that have a significant effect on the co- adoption of renewable energy technologies and energy efficiency. (Contd ) 12 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
7. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Table 1: (Continued) Author Context Methodology Findings/Contributions Limitation Strielkowski Focuses on innovative policies Employed empirical Energy efficiency depends on a smooth Focused et al. (2019) on energy efficiency and analysis, the data was transition to a low-carbon future. approach, household use of renewable obtained from a consumer This transition can be enhanced by an household sector. energy. household survey conducted increased awareness of environmental and by the Customer-Led sustainability issues, as well as a transition Revolution (CLNR). The to renewable energy sources. survey used a smart meter to monitor 199 households in the North of England over a two-year period (known as the “CLNR project”). CLNR data includes records of the electrical usage or various devices obtained from smart watches from October 2012 to July 2014. This data included 155 households with solar PV conducted between June 2012 and March 2014. Cristescu et al. Focuses on increasing energy Adopted analysis of Directions in relation to techniques, Focused (2017) efficiency which is mentioned methods for increasing methods and ways in terms of structure and renewable at INOE 2000-IHP Institute in energy efficiency and operation for increasing energy efficiency energy source. the field of energy efficiency optimizing the operation and optimizing the renewable energy and functional optimization of clean energy production conversion system. of systems that obtain clean systems from renewable energy from renewable sources, presented some resources. practical examples in the field of wind energy and hydraulic energy of flowing water. Solnứrdal and Focuses on energy efficiency Adopted an evidence-based First, economic and organizational Studies are Foss (2018) gap and systematic evaluation review methodology which dynamics are the most prominent stimulus mainly carried of empirical articles on factors is a critical and systematic to energy efficiency. Second, the firm’s size out in the US that promote energy efficiency review of the empirical has a positive effect on energy efficiency and Western in manufacturing enterprises. literature on drivers to of firms. Third, these constraints imply European energy efficiency in a potential mismatch between energy countries, despite manufacturing firms at the policymakers and energy managers the fact that firm level. The systematic who understand which factors are most energy demand literature review (SLR) is important for achieving higher energy will increase in based on peer-reviewed efficiency in manufacturing firms. the future outside articles published between of these regions. 1998 and 2016. Ku-Hsieh Focuses on energy efficiency, Adopted empirical analysis Clarity to the concept of energy efficiency The idea et al. (2020) its indicators, estimation using sample taken and propose a new metric for it. proposed in and new ideas for finding a from the World Bank’s this article is concise and vivid metric for World Development more suitable energy efficiency that remains Indicators database, for analyzing a controversial and intriguing covers 20 Organization for economic, topic. Economic Co-operation commercial and Development (OECD) and managerial economies and covers the issues at an period 1992–2014. aggregate level, such as region or country level. It is less applicable for the assessment of the energy capability of specific products or equipment. Source: Author’s Review International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 13
8. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Table 2: Previous theories related to energy efficiency and sustainable development Source Theory Definition and brief explanation Leibenstain (1978) Theory of X-efficiency Particular interest to attract additional sources of energy and increase the motivation of workers in energy efficient production and business. Nelson and Winter Evolutionary theory This theory has great potential to study problems of energy saving and energy (1973) consumption. Aoki (1986) Information theory of firms Provisions on special use of different information to reduce energy dependence and enhance energy security of firms. Michael and William Firm’s managerial theory Energy consumption and energy efficiency are areas of manager’s activity and are an (1976) integral part of the planning and forecasting of activities. [60] Heider (1944, Attribution theory It’s about analysis of actions like wanting, trying and “can” which is majorly relative 1958) to environment quality and social life quality. It’s important because it means that “what an actor believes the other is, thinks the other will do and what the actor does are all effected”. Attribution is the process of assigning qualities to the environment, including persons. “We must attribute to provide necessary stability in our psychological environment”. Deci and Ryan Self-determination theory Distinguishes between external sources of motivation (pay/punishment) and those of (2002) internal motivation, such as desire for autonomy and competence. Ajzen (1985) Theory of Planned Behaviour Behavioural intentions are predicted by attitudes, which in turn are influenced by knowledge, beliefs and awareness. Source: Author’s Review Figure 1: Conceptual Model Using Energy Efficient Technologies (UBE) H1 Energy Consumption H2 Initiatives (ERE) H3 Energy H61 Sustainable Development Construction & Efficiency (SDE) Design (CDE) (ENE) H4 Appliances & Equipment (AEQ) H5 Management Practices (MCE) Source: Author’s Construct (AEQ) and (5) Management practices (MCE). In overall, this H2: Energy consumption initiatives positively impact on energy model consists of five independent variables include UBE; ERE; efficiency CDE; AEQ and MCE, one meditating variable which is ENE and H3: Construction and design positively impact on energy efficiency H : Appliances and equipment positively impact on energy efficiency one dependent variable which is SDE. 4 H5: Management practices positively impact on energy efficiency H : Energy efficiency positively impact on sustainable development The variables of this study were constructed that UBE has 4 items, 6 ERE has 5 items, CDE has 4 items; AEQ has 4 items and MCE Table 3 summarizes constructs of the proposed research model has 4 items; ENE has 4 and SDE has 4. In overall, this model has of this study. 5 independent variables, 1 mediwwow summarizes the constructs of this model. 4. RESEARCH METHODOLOGY Finally, this model is hypothesized as following: This study uses a combination of qualitative and quantitative H1: Using energy efficient technologies positively impact on methods to take advantage of both research methods to energy efficiency comprehensively evaluate the relationship of the variables of the 14 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
9. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Table 3: Constructs Constructs Items Description References Using Energy UBE1 Employ the latest energy efficient technology for direct manufacturing activities. Singh (2019); Omer (2014); Efficient UBE2 Employ the latest energy efficient technology for general operating activities. Strielkowski et al. (2019); Technologies UBE3 Employ technology for being able to use renewable energy. Kuzmin et al. (2019); (UBE) UBE4 Employ windows and building envelope technology for energy saving. Masoso and Grobler (2010); Energy ERE1 Promote renewable energy applications. Chwieduk and Chwieduk Consumption ERE2 Increase in share of renewable energy consumption on the total energy (2020); Pộrez-Lombard et al. Initiatives (ERE) consumption. (2012); Stagnitta et al. (2020); ERE3 Optimize passive cooling by natural ventilation. Mrúwczyńska et al. (2018); ERE4 Optimize passive lighting by the light of nature. Gorbacheva and Sovacool ERE5 Improve behavior of energy users to be efficient-oriented. (2015); Solnứrdal and Foss Construction and CDE1 Building design to optimize natural ambient resources such as ventilation, light (2018); Boyd and Curtis Design (CDE) and heat. (2014); Kostka et al. (2013); CDE2 Building orientation to save energy. REN21 (2016); IEA (2014); CDE3 Construction materials used to save energy. EIA (2017); Dasgupta (2007) CDE4 Building design to allow adoption of renewable energy technology. Appliances and AEQ1 Use low energy equipment and appliances. Equipment (AEQ) AEQ2 Upgrade equipment efficiency. AEQ3 Perform periodic maintenance. AEQ4 Replace energy carriers cyclically. Management MCE1 Perception of leaders about environment and society related issues. Practices (MCE) MCE2 Sensibility of leaders about climate change, pollutants, greenhouse emissions and biological imbalance. MCE3 Engagement of leaders in projects related to energy efficiency improvement. MCE4 Consistent behavior of leaders on energy efficiency related issues. Energy Efficiency ENE1 Consume less energy inputs for the same outputs. (ENE) ENE2 Consume same energy inputs for higher outputs. ENE3 Increase renewable energy consumption. ENE4 Sustain stable source of energy to serve manufacturing and business activities. Sustainable SDE1 Increase Gross Domestic Products (GDP) per capita Development SDE2 Reduce greenhouse gas emissions (GHG) (SDE) SDE3 Reduce dependence on source and price fossil fuels because of importing related. SDE4 Human Development Index (HDI). Source: Author’s construct research model. Qualitative research allows us to access insights model. Accordingly, the sample size should be calculated 5-10 and details about the perspectives of the determinants of energy times as much as the items identified in the study. This study has efficiency (ENE) and the relationship of ENE and sustainable a total of 29 items, so the required sample size is 290. However, development (SDE). In addition, qualitative research in the form in order to avoid potential risks that can occur during the survey of in-depth expert interviews in a face-to-face model allows the such as missing answers from target respondents, unsatisfied authors to collect different attitudes and behaviors that are likely answers and so on, authors decided to initially proceed with 520 to lead to the same action or decision. The authors have prepared samples at the simple method of collecting random probability open-ended interview questions to encourage the interviewees to samples. Survey subjects include experts (about 20%), firms’ answer in the most comfortable, practical way and not limited to a executives (about 45%), and management levels (about 35%) certain framework. The types of respondents chosen to interview in the South of Vietnam, with no age limit for respondents. are economists and experts, firms’ executives and entrepreneurs. The survey was implemented by distributing questionnaires to There are 50 respondents, of which, there are 15 economists and the target respondents through email and direct delivery. The experts, 27 executives and 8 entrepreneurs. The expected outcome collected questionnaires were screened and selected the satisfied of this stage is the final questionnaire relevant to the research questionnaires. As a result, there was 491 met the specification context and ready for quantitative research. The questionnaire as indicated criteria. Those data were then used for analysis using constructed using the Likert 7 scale indicates that the score range Partial Least Squares (PLS). from 1 (strongly disagree) is gradually increasing to 7 (strongly agree). 5. RESULTS AND DISCUSSION Two data types were used in this study which are classified as 5.1. Assessing Reliability of the Scale primary and secondary. In this study, secondary data are collected Reliability assessment is to check the consistency levels between related to energy consumption, energy efficiency, energy policy multiple measurements of a variable (Hair et al., 2010). This study and incentives, related to global agreement, etc. Primary data was assesses the consistency of the entire scale and its overall reliability of collected by questionnaire survey with initial sample size of 520. each factor of productivity values by simultaneously using Cronbach’s Hair et al. (2010) proposed that the principal allow the sample size Alpha and composite reliability indexes with expect to bring all calculation based on the number of items of the proposed research necessary basis into consideration for the most appropriate conclusion International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 15
10. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country to the study context. The analysis results show that Cronbach’s 5.2. Assessing Validity Alpha coefficient of all variables are greater than 0.8 from 0.804 of Hair et al. (2010) defined that the purpose of assessing validity UBE, 0.821 of CDE, 0.847 of MCE; 0.852 of SDE, 0.858 of ENE, is to determine how well is the construct explained the variables 0.877 of ERE and 0.907 of AEQ. Thus, it can be concluded that the under the construct. In addition, it’s to assess practicality of the measurement scale of this research model is good. However, authors data collected and its reflection on the study context. According to would like to continue further investigation to strongly affirm the Anderson et al. (1988), the validity of research concepts includes reliability of the scale, therefore composite reliability value was used convergent validity and discriminant validity of scales. for this purpose. The analysis result show that all composite reliability values are greater than 0.8 from 0.863 of UBE, 0.881 of CDE, 0.897 5.3. Convergent Validity of MCE, 0.901 of SDE and ERE, 0.904 of ENE and 0.935 of AEQ. According to Fornell and Larcker (1981), the convergence value is According to Hair et al. (2016), the aggregate reliability between used to illustrate the full convergence of the measurement items on 0.7 and 0.95 represents a satisfactory level of reliability. Therefore, their respective structures. While Hair et al. (2010) suggested that in overall, these results confirm that the reliability of this scale is the AVE index should be over or equal to 50%, the extracted factors good and acceptable. Table 4 below is summary of these results. could be more explainable than any other extract combinations. Table 6 shows the results of EVA and external loading factors. In addition, the indicator reliability was checked by assessing outer In which external loading factors values are all greater than 0.7 loading’ results. Table 5 below shows the results of outer loading and EVA are all greater than 0.5. These values exceed the level where all values are greater than 0.7. It means that all individual mentioned, it indicates a sufficient degree of convergent validity, indicators are reliable. which means that a specific latent variable explains more than half of the variance in comparison to their corresponding indicators (Hair et al., 2011). Accordingly, we can conclude that the observed Table 4: Cronbach’s alpha and composite reliability results variables are focused on the research concept that it is involved Variables Cronbach’s alpha Composite reliability in or convergent validity is supported. AEQ 0.907 0.935 CDE 0.821 0.881 ENE 0.858 0.904 5.4. Discriminant Validity ERE 0.877 0.901 HTMT was assessed to reaffirm the discriminant validity of the MCE 0.847 0.897 measurement model. HTMT is a shorty written form of Heterotrait- SDE 0.852 0.901 Monotrait Ratio which is a new criterion to assess discriminant UBE 0.804 0.863 validity. According to Kline (2011), HTMT value closes to 1 Source: Authors’ analysis indicate a lack of discriminant validity. Its threshold value should be 0.85. It means that if HTMT value of research model is smaller Table 5: Results of outer loading than 0.85 then it can be concluded that discriminant validity of the Variables AEQ CDE ENE ERE MCE SDE UBE research model is established. In this study, HTMT values are all AEQ1 0.867 <0.85 so discriminant validity is supported. Table 7 summarizes AEQ2 0.900 AEQ3 0.891 the HTMT results of this study. AEQ4 0.878 CDE1 0.815 5.5. Evaluation of Structural Model CDE2 0.775 According to Falk and Miller’s (1992), the model is called good CDE3 0.800 when the R2 index is satisfactory, meaning that the R2 index are CDE4 0.831 2 ENE1 0.847 greater than 0.1. Table 8 below shows the results that both R values ENE2 0.852 ENE3 0.869 Table 6: Convergent validity ENE4 0.780 Variables External loading factors AVE ERE1 0.834 AEQ 0.867-0.900 0.782 ERE2 0.833 CDE 0.775-0.831 0.649 ERE3 0.859 ENE 0.780-0.869 0.702 ERE4 0.718 ERE 0.718-0.859 0.647 ERE5 0.768 MCE 0.799-0.864 0.685 MCE1 0.826 SDE 0.712-0.884 0.697 MCE2 0.864 UBE 0.753-0.824 0.612 MCE3 0.821 Source: Authors’ analysis MCE4 0.799 SDE1 0.860 Table 7: Heterotrait-monotrait results SDE2 0.884 SDE3 0.872 Variables AEQ CDE ENE ERE MCE SDE SDE4 0.712 CDE 0.378 UBE1 0.785 ENE 0.569 0.402 UBE2 0.753 ERE 0.042 0.409 0.081 UBE3 0.765 MCE 0.544 0.411 0.652 0.223 UBE4 0.824 SDE 0.492 0.377 0.476 0.112 0.397 UBE 0.188 0.251 0.356 0.144 0.190 0.393 Source: Authors’ analysis 16 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
11. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country and R2 adjusted values are greater than 0.1. In which, R2 value and related to VIF assessment show various threshold for collinearity R2 adjusted values of energy efficiency (ENE) respectively are evaluation (Cenfetelli et al., 2009; Kline, 1998; Petter et al., 2007). 0.476 and 0.470; R2 value and R2 adjusted values of sustainable It is commonly recommended values are 10, 5, and 3.3; meaning development (SDE) respectively is 0.165 and 0.164 which are that a VIF equal to or greater than the suggested threshold value satisfied. Therefore, the structural model is considered satisfactory. then it could be concluded the existence of collinearity among the variables or called in other word multicollinearity. Results of this The next step of process is analyzing model-of-fit to determine its research show that VIF values are all smaller than 3.3 so it can fitness and its validity. This analysis was conducted by assessing be concluded that there is no multicollinearity problem among certain indices such as SRMR. Those values in this study satisfied variables of the research model (Petter et al., 2007). Table 11 the defined acceptance thresholds of the previous authors of the below summarizes VIF values of this model. relevant studies. Table 9 below summarizes the model-of-fit indices with full name, the acceptance thresholds and results. Further, the significance of path coefficient analysis was conducted Overall, it can be concluded that this model is fit and valid. using Bootstrap method using 1000 emulators. Bootstrapping assigns measures of accuracy (bias, variance, confidence intervals, In addition, Table 10 shows path coefficients of variables of the prediction error, etc.) to sample estimates” (Efron and Tibshirani, research model. It indicates that all the defined determinants for 1993). The bootstrapping result shows that the statistical value t energy efficiency (ENE) have positive significant impact on ENE. >1.96 and p-value <5% which confirm hypotheses of this research Results show that among five variables that impact on ENE, MCE model. It can be concluded that the research model of this study has strongest impact on ENE at 0.399, the next one is AEQ at and research data is determined suitable, also, hypotheses of this 0.222, followed by ERE at 0.219, UBE at 0.203 and CDE at 0.161. study is confirmed accepted. In conclusion, the positive impacts of Results also show that ENE has positive significant relationship UBE on ENE; ERE on ENE; SDE on ENE; AEQ on ENE; MCE with SDE at 0.407 as coefficient. The results indicated that for on ENE are confirmed in this study. Moreover, ENE has positive manufacturing firms in Vietnam context, determinants for energy significant relationship with SDE is also confirmed in this study. efficiency defined are (1) Using energy efficient technologies; (2) Energy consumption initiatives; (3) Construction and design; The below Figure 3 shows bootstrapping results and Table 12 (4) Appliances and equipment and (5) Management practice. It presents bootstrapping values. implies that for manufacturing firms for achieving efficient use of energy for manufacturing and overall operation activities, those Table 12 below shows the resulting indicators of bootstrapping fields are determined that firms should prioritize such as upgrade which are satisfactory for hypotheses to be accepted. technologies; promote initiatives on energy use; design building for utilizing ambient surroundings as passive energy use for In general, through the evaluation process carried out by suitable instance ventilation, heat and so on; use low efficient appliances methods, the results are determined satisfactory and accepted on and equipment and period maintenance; role of leadership in the basis of the acceptability threshold of the relevant indicators energy consumption management and energy efficiency projects. confirmed by previous studies. Therefore, it can be concluded that Regarding relationship between ENE and SDE, results show this research model and structure is reliable, valid and suitable for that ENE plays a very important role in achieving sustainable the research context and confirmed research hypotheses. development (SDE). It implies that each unit of energy used effectively will contribute to sustainable development including The findings of this research coincide with some in the economy, society and environment. current literature that adoption of improved technologies has positive impact on energy efficiency (Oikonomou et al., Figure 2 below is the result analysis of this research model. 2009; Mrúwczyńska et al., 2018); initiatives on energy use has significant impact on energy efficiency (Chwieduk and Multicollinearity was checked by assessing VIF (variance Chwieduk 2020); construction and design positively drive inflation factors). Collinearity is a condition in which a number of energy efficiency (Chwieduk and Chwieduk 2020); appliances independent variables are highly correlated. The existing literature and equipment has positive effect on energy efficiency (Stagnitta et al., 2020) and management practices of firm positively Table 8: R square values drive energy efficiency (Boyd and Curtis, 2014; Martin et al., 2012; Bloom et al., 2010). Accordingly, results indicated that Variables R2 R2 Adjusted ENE 0.476 0.470 management practice plays the most important role for driving SDE 0.165 0.164 energy efficiency. It implies that firms with a strong leadership in energy efficiency projects and high sensitivity with social and Source: Authors’ analysis Table 9: Model-fit analysis Model-of-fit indices Full name Acceptance thresholds Values (Saturated model - Concluded Estimated model) SRMR (Standardized root mean squared 0.00 < Value < 0.08 0.063-0.079 Good fit residual approximation (Hu and Bentler, 1999) Source: Authors’ analysis International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 17
12. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Table 10: Path coefficient environmental problems will well promote energy efficiency Variables AEQ CDE ENE ERE MCE SDE UBE of firms. Additionally, firms that pay attention to low energy AEQ 0.222 appliances and equipment will remarkably enhance the overall CDE 0.161 energy efficiency. Besides that, firms those concern on the ENE 0.407 initiatives on energy consumption and energy use behavior ERE 0.219 MCE 0.399 will significantly improve energy efficiency of firms in overall SDE operation. Next is technologies-related and construct and design- UBE 0.203 related those also significantly contribute to enhancement of Source: Authors’ analysis energy efficiency of firms. Table 11: Variance inflation factors values Variables VIF values Variables VIF values Variables VIF values Variables VIF values AEQ1 2.515 CDE4 1.892 ERE3 2.020 SDE1 2.409 AEQ2 2.905 ENE1 2.123 ERE4 2.029 SDE2 2.727 AEQ3 2.813 ENE2 2.161 ERE5 2.229 SDE3 2.675 AEQ4 2.623 ENE3 2.375 MCE1 2.096 SDE4 1.369 CDE1 1.620 ENE4 1.606 MCE2 2.459 UBE1 1.899 CDE2 1.628 ERE1 1.948 MCE3 1.980 UBE2 1.934 CDE3 1.784 ERE2 1.967 MCE4 1.584 UBE3 1.714 UBE4 1.343 Source: Authors’ analysis Table 12: Bootstrapping’s results Path of variables Original sample Sample mean Standard deviation T statistics P-values (O) (M) (STDEV) (|O/STDEV|) AEQ→ENE 0.222 0.227 0.049 4.523 0.000 CDE→ENE 0.161 0.152 0.048 3.379 0.001 ENE→SDE 0.407 0.410 0.045 9.013 0.000 ERE→ENE 0.219 0.198 0.072 3.037 0.002 MCE→ENE 0.399 0.393 0.058 6.880 0.000 UBE→ENE 0.203 0.206 0.034 5.933 0.000 Source: Authors’ analysis Figure 2: Result analysis of research model Source: Authors’ analysis 18 International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
13. Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country Figure 3: Bootstrapping’s results Source: Authors’ analysis In addition, the research findings determined that energy efficiency management and (2) appropriate actions and behaviors based positively significantly drive sustainable development at the on identified determinants of energy saving to improve energy national perspective (Soroka et al., 2019; REN21, 2016; Dato, efficiency; (3) For policy makers to have appropriate policies to 2018; UNEP, 2009; Ku-Hsieh et al., 2020). It implies that firms that encourage manufacturing enterprises to improve energy efficiency efficiently use of energy significantly contribute to the sustainable in production and business activities; (4) For economists, investors development of nation, in this research context, emerging nation or business owners to understand the value of improving energy as Vietnam. efficiency for businesses, society and the environment to make necessary investments towards sustainable development firm. In overall, the significance of this study is a holistic concept of These contributions are considered to be very important to determinants for energy efficiency and roles of energy efficiency sustainable development in this way or another ways. in sustainable development at organizational and national perspectives in manufacturing sector in emerging country like 7. LIMITATION Vietnam. This significant contribution is a novelty in this research context so far in current literature. Although this study provides interesting results and insights, it has some limitations. First, this study focuses on manufacturing 6. CONCLUSION sector, future study should conduct on other sector which is not available in literature. The second limitation is in relation to data The defined contributions of this study enable conclusion that collection which was collected from random chosen companies this research has a significant contribution in theory and practice in manufacturing sector it might be problematic regarding its with this research context. Accordingly, from a theoretical point of representativeness if taking into consideration of a specific industry view, the contributions are majorly subjected to (1) Comprehensive category. The third limitation related to geography that this study knowledge of energy efficiency; (2) Factors determining energy was conducted with a selective participants of manufacturing efficiency in manufacturing in emerging countries especially firms operating in industrial zones in the South of Vietnam. As a Vietnam; (3) The degree of influence of each factor on the energy consequence, its relevant findings might not be representative for the efficiency of production enterprises; (4) The importance of other regions or other participants in different contexts. In general, energy efficiency for the economy, society and the environment; the findings may not provide the best support for different context (5) Prospects of energy efficiency for sustainable development essences, or on the other hand, it may be impractical and may apply from the organizational and national perspectives; In addition, to different contexts. In general, these limitations provide chances from a practical point of view, the contributions of this study to for future researches continue to contribute to the literature of energy be subjected to (1) For the management level of manufacturing efficiency, its determinants and its influence on the sustainable enterprises to have a realistic and clear strategy for energy development in different context and different research subject. International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021 19
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