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The pulp and paper industry faces several challenges linked to climate and environmental impact, resource efficiency, rising energy prices, increased competition for biomass resources, and declining demand for traditional printed paper products. However, these challenges also offer strategic opportunities for the industry to develop into a competitive, resource-efficient, and low-carbon industry in line with a biobased economy. Against this background, this paper aims to analyse current energy strategies in the pulp and paper industry in Sweden. Specifically, the paper analyses how companies combine continuous process efficiency to reduce energy costs with activities that could be developed into new energy-related products to increase revenue. Most of the analysed companies work to various degrees with both these strategies, employing methods that include improving energy efficiency, energy security, and energy conversion, as well as developing a wide range of biobased energy products. However, our study indicates that there is an untapped potential associated with energy product development, and we conclude that energy efficiency measures can free up resources, enabling the development of new energy products. Finally, several potential managerial outcomes and implications are outlined. • The paper analyses the energy strategies in the pulp and paper industry in Sweden. • Energy strategies focus both to improve energy efficiency and develop new energy-products. • The companies' energy strategies combined exploitation and exploration. • A number of managerial implications are presented. [ABSTRACT FROM AUTHOR]

Abstract: The purpose of this paper is to conceptually analyze the cost-effectiveness of voluntary energy efficiency programs targeted at the industrial sector. In the paper a broad methodological framework for such an assessment is outlined, and this is applied empirically to discuss the potential cost-effectiveness of the ongoing Swedish energy efficiency program PFE. The focus lies on the presence of asymmetric information and bounded rationality, and the paper discusses how these factors may influence the cost-effectiveness of these types of programs. We also highlight the impact of the self-selection mechanism on the program''s cost-effectiveness. The results show that the presence of information inefficiencies and asymmetries represents one of the major motives for policy intervention in the industrial energy efficiency field, but the substitution of energy management systems for electricity taxes—such as that achieved in the Swedish PFE program—does not necessarily address these asymmetries entirely cost-effectively. First, the presence of firm-government information asymmetries implies that electricity taxes could do a better job in energy-intensive companies while an energy management system could be more effective in companies with a low energy-intensive production process due to the lack of prior experience of energy efficiency measures. The current set-up of PFE induces the reverse situation. Second, although firm-internal information asymmetries may well exist in the participating energy-intensive companies—implying that energy management systems could do a good job in detecting cost-effective measures—this is likely to be even more true for the non-participating companies (again due to their comparatively low accumulated knowledge in the energy efficiency field). It should however also be acknowledged that this analysis is static, and in the long-run voluntary energy efficiency programs may lead to significant learning impacts and—given the public good characteristics of this new knowledge—to important spillover effects. [Copyright &y& Elsevier]