Energy Efficiency and Energy Savings Potentials in the Austrian Manufacturing and Construction sectors ‐ Firm‐level Evidence from a Stochastic Frontier Analysis
Authors: Andreas Reinstaller and Richard Sellner (OeNB)
Report 02/2025
This paper investigates the drivers of changes in energy intensity and explores energy‐saving potentials at the firm level within Austria’s manufacturing and construction sectors from 2008 to 2022. The analysis focuses on the role of energy efficiency. Using firm‐level data and applying stochastic frontier analysis, the study reveals that reductions in energy intensity were primarily attributable to scale efficiency gains and technological progress rather than improvements in energy efficiency alone. Despite considerable heterogeneity among firms, counterfactual scenarios with varying ambition levels suggest that raising low‐efficiency firms to the median efficiency could yield one‐off energy savings of 11.7–13.2%. However, rebound effects would reduce net savings to 8.4–9.7%, corresponding to 12.3–14.2% of the final energy consumption reduction mandated by the Austrian Energy Efficiency Act (EEffG). While these savings are significant, they fall short of offsetting recent energy price shocks and their contribution to the achievement of long‐term national and EU policy targets is limited. The findings underscore the need for policy approaches that extend beyond energy‐specific measures to also foster productivity, innovation, and structural transformation.
Cite as: Reinstaller A., Sellner R. (2025). Energy efficiency and energy savings potentials in the Austrian manufacturing and construction sectors: firm-level evidence from a stochastic frontier analysis. Report 02/2025, Office of the Austrian Productivity Board, Vienna.