An empirical analysis of energy efficiency measures applicable to cities, regions, and local governments, based on the case of South Korea’s local energy saving program

As highlighted in the outcome of the Paris Agreement at the 21st Conference of Parties of the United Nations Framework Convention on Climate Change there has been a recent push for the stronger mitigation actions of cities, regions, and local governments. Energy efficiency is a tool that can be leveraged by not only industry or national governments but also cities, regions, and local governments for mitigation purposes. However, studies on energy efficiency as a mitigation tool thus far have focused on the national or transnational scale, and on certain sectors of industry. The purpose of this paper is to find the most cost-efficient energy efficiency measures (EEMs) at the city, region, and local government level. To that end, this paper examines the yearly energy savings and greenhouse gas (GHG) reduction intensity, as well as energy savings and GHG reduction efficiency, in the case of EEMs conducted by South Korean local governments. Yearly energy savings intensity and GHG reduction intensity are estimated to be in the range of 0.094∼0.375 tonne of oil equivalent (TOE)/M-KRW (million Korean won) and 0.287∼1.180 tCO2e/M-KRW. Results show that inverter installation at water and sewage treatment plants and improvement of pump efficiency are the most cost-efficient EEMs. Moreover, energy savings efficiency and GHG reduction efficiency are within the range of 18.29∼45.31 %, at an average of 30.5 % GHG reduction potential. If this reduction potential is applied to the buildings and facilities regulated and run by cities/local governments, there is a worldwide reduction potential of 1.023 billion tCO2 compared to 2020 business as usual levels.