Methodical approaches to increasing the energy efficiency of global value chains

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Authors:

D.Palekhov, Cand. Sc. (Law.), PhD (Env. Sc.), orcid.org/0000-0001-6041-668X, Brandenburg University of Technology Cottbus – Senftenberg, Cottbus, Germany, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

L.Palekhovа, Cand. Sc. (Econ.), Assoc. Prof., orcid.org/0000-0003-0217-5755, National Mining University, Dnipro, Ukraine, e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract:

Purpose. The purpose of the presented research is the development of a methodical approach to increasing the energy efficiency along global value chains (GVCs), while including into them new players from countries with weak energy sustainability.

Methodology. The main arguments in the article are developed by analysing official EU documents, statistical reports from international non-governmental organisations, and scientific publications on the subject of energy efficiency in the context of sustainable development, through comparative analysis of statistics in the area of energy consumption, energy efficiency and economic growth in various regions and countries, and by analysing experience of different countries in this field, with particular focus on Germany.

Findings. The study clarified the specific features of the modern concept of energy efficiency which is based on three core dimensions—energy security, energy equity, and environmental sustainability. This concept was considered as the basis for further development of GVCs, as an approach for assessing energy efficiency of their links, and for planning appropriate joint actions. The analysis also showed that integration of businesses from vulnerable economies into the multilateral trading system will help to build and improve the potential for energy efficiency and energy sustainability in them. However, GVCs should be supported by the technologically advanced countries, such as Germany, through technology transfer and strengthening of trade relations in order to be energy reliable and efficient in the long-term perspective.

Originality. Based on the conducted review, several recommendations were made on increasing energy efficiency in GVCs, while taking into consideration the different level of capacity among the partners: 1) it is important to balance strategic priorities and necessary trade-offs for the formation of energy efficient GVCs; 2) differentiation between producers following or not following principles of sustainability in their business practices can be made, in particular, with the help of various voluntary sustainability standards; 3) representatives of developed countries should apply a variety of methods for stimulating interest among their prospective partners in sustainable technologies and products.

Practical value. Research findings can be used by companies to develop strategies of their incorporation into GVCs, as well as for making strategic public policy decisions at the local and national levels.

References.

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