Energy efficiency: Determinants and roles on sustainable development in emerging country
International Journal of Energy Economics and
Policy
ISSN: 2146-4553
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,
3
International School of Business, University of Economics Ho Chi Minh City, Vietnam. *Email: tieplt@uef.edu.vn
Received: 04 September 2020
Accepted: 08 December 2020
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
(UNFCCC, 2015). Cristescu et al. (2017) proposed that “the concept
of energy efficiency (or optimization of energy consumption) has
1. INTRODUCTION
currently become one of the main concerns of mankind across the
globe.” Currently, world economy heavily relies on energy from
non-renewable resources such as coals and oils while those are the
main causes that negatively affect the environment, heat up the
earth and cause climate change as greenhouse gas emission and
pollutants created by use. According to Asarpota and Nadin et al.
(2020), world’s energy demand is estimated to increase by around
1.3% per year through 2040, while energy efficiency decreases
and emissions increase. Globally, energy use is the most important
contributor to greenhouse gas (GHG) emissions (Intergovernmental
Panel on Climate Change, 2014). Approximately two thirds of
GHG emissions come from energy production and consumption,
making it a central issue in climate change mitigation activities
(International Energy Agency, 2019). Efficient use of energy is
Energy is an important factor and an integral power of the
socioeconomic growth. However, how to make sustainable
development is of great concern to stakeholders including
economists, entrepreneurs, investors, executives and policymakers
and so on. According to Ku-Hsieh et al. (2020), “Energy effciency
has long been an important issue to the global economic and
political theaters.” Besides, Solnørdal and Foss (2018) argued
that climate change is one of the most pressing themes of the 21st
century. It challenges the very structure of our global society and
covers issues like economics, politics, business management and
each individual’s lifestyle choices. According to EIA (2017), the
generally recognized relationship between energy consumption,
greenhouse gas (GHG) emissions and climate change has
brought energy efficiency into political agendas around the world
This Journal is licensed under a Creative Commons Attribution 4.0 International License
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International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
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
greenhouse gas emissions, reducing the need for energy imports
and reducing costs at the household level and across the economy.
As European Climate Foundation (2016), the “Paris Agreement
has addressed a clear signal to stakeholders and investors that
the global transition to a low-carbon economy and clean energy
is here to stay.” Furthermore, driving towards a low carbon
economy is a clear opportunity for global economy, jobs and
sustainable growth. There are numerous studies related to energy
efficiency but the approaches, perspectives and contexts are
very diverse such as Mrówczyńska et al. (2018) with “Social
and infrastructural conditioning of lowering energy costs and
improving the energy efficiency of buildings in the context of the
local energy policy” for building sector; Chwieduk and Chwieduk
(2020) with “determination of the energy performance of a solar
low energy house with regard to aspects of energy efficiency and
smartness of the house” which typically household sector; Dato
(2018) “investment in energy efficiency, adoption of renewable
energy and household behavior” for household sector; Cini et al.
(2017) “Energy Efficiency Projects of Budget BeneficiariesAnd Its
Impact On Regional Economy” for economic related; Strielkowski
et al. (2019) with “innovative policies for energy efficiency and the
use of renewables in households” for household sector; Cristescu
et al. (2017) with “increasing energy efficiency and optimizing the
operation of systems that produce clean energy from renewable
sources”; Stagnitta et al. (2020) with “Acomplementary approach
to traditional energy balances for assessing energy efficiency
measures in final uses: The case of space heating and cooling”;
Lenzi et al. (2013) with “From energy balance to energy efficiency
indicators including water losses”; Benavente-Peces (2019) with
“On the energy efficiency in the next generation of smart Buildings
Supporting technologies and techniques” for building sector;
Han et al. (2017) with “measuring energy efficiency in China’s
transport sector” for transport sector. However, research on specific
factors affecting energy efficiency are still unclear. Furthermore,
there is a gap between existing studies and the need for a practical
understanding of the role that energy efficiency plays in national
sustainable development especially in the context of emerging
countries like Vietnam, according to the best knowledge of the
authors. It is therefore essential to have a holistic study related to
energy efficiency to provide a comprehensive understanding to the
interested parties of what factors drive energy efficiency and how
energy efficiency plays a role in national sustainable development.
Moreover, this study focuses on the manufacturing sector with
expect that deliverable of this study can address specifically
relevant issues of a certain sector, moreover, implications can be
practical and applicable for a certain sector to generate certain
values. According to EIA (2017), the energy consumed by the
manufacturing sector accounts for about 50% of the world’s
energy consumption therefore the manufacturing sector is seen as
a core force to focus on improving energy efficiency to mitigate
climate change issues. Moreover, reduced energy costs are crucial
for industrial companies to maintain competitive advantage
for sustainable development (Hart, 1995; Worrell et al., 2009).
Moreover, at the national perspective, using energy efficiently
brings significant environmental, economic and social benefits by
reducing greenhouse gas emissions and other pollutants, limiting
climate change, limiting risks due to uncertainties can occur due to
gas emissions in the energy sector. Economical and efficient use
of energy help reduce pressure on the exploitation, processing and
supply of energy types, helping to improve the efficiency of the
economy, and at the same time helping conserving national energy
resources, protecting the environment and reducing greenhouse
gas emissions, contributing to the mitigation of the impacts of
global climate change thereby, solving existing relevant challenges.
Reducing energy use contributes to lower energy costs and can save
consumers financial costs. In addition, reducing energy use is also
seen as a major solution to the problem of reducing greenhouse
gas emissions. Improving energy efficiency in buildings, industrial
processes, and transportation could reduce world energy demand by
about a third by 2050 while also helping control energy efficiency
in buildings, industrial processes and transportation that control
of global greenhouse gas emissions (Sophie, 2006). Another
approach by Bill et al. (2007) that energy efficiency and renewable
energy are believed to be the twin pillars of sustainable energy
policy. In many countries, energy efficiency is also assessed as
having national security benefits because it can be used to reduce
energy imports from abroad and contribute to reducing the rate of
depletion of energy resources. Both strategies must be developed
at the same time to stabilize and reduce CO2 emissions. Energy
efficiency is essential to slowing the growth of energy demand in
order to increase the supply of clean energy, possibly reducing the
use of fossil fuels. If the use of energy increases too quickly, the
likelihood of developing renewables decreases. Likewise, unless
a clean energy supply becomes rapidly, slowing growth in energy
demand will start to reduce total carbon emissions, reducing the
carbon content of energy sources is also needed. A sustainable
development of economy therefore requires commitment to energy
efficiency and renewable energy. Efficient use of energy has been
shown to be an economical and efficient strategy in developing
an economy without necessarily increasing the cost of energy
consumption. Energy efficiency and conservation goals should be
integrated into economic restructuring plans, national technological
innovation strategic plans and developing strategies to meet the
country’s sustainable development requirements. Additionally,
according to Eisenmenger et al. (2020), countries around the world
are more and more dynamic and pay a high attention to sustainable
development by aligning development goals for improving well-
being, society and economy with ecological goals. The sustainable
development goals (SDGs) were adopted in 2015, succeeding the
Millennium Development Goals (MDGs). Accordingly, MDGs
focused on improving well-being in the developing world while
“17 SDGs address all countries and aim at reconciling economic
and social with ecological goals.” According to UN (2015), UN
Agenda 2030 is perceived as “the most comprehensive global
political effort towards achieving sustainable development.”
The existing challenges for global sustainability such as climate
change and biodiversity loss are considered as key drivers of global
policy initiatives. Climate change and biodiversity loss are current
challenges of the global sustainability that call for urgent action and
lay grounds for international policy (IPCC, 2018; IPBES, 2019).
Energy efficiency is globally perceived important because of its
important contributions to society, economy and environment
those are the key aspects of national sustainable development.
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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
technologies that require less energy to perform the same function”.
Considering energy efficiency, according to International Energy
Agency (2014), it can be said that energy consumption is more
efficient if more services produced with the same energy input or
similar services generated with less energy input. Accordingly,
energy efficiency measures are conceptually divided into two
main categories include “energy-consumption-efficacy-indicator
“(ECEI) and “energy-economic-efficiency-estimate” (EEEE).
Additionally, Stagnitta et al. (2020) defined that energy efficiency
describes the ratio between the benefits gained and the energy used.
Irrek et al. (2020) distinguish different approaches concerning
energy efficiency such as macro-economic; energy conversion
between supply and provision and end use on the demand side and
energy efforts of the human body in household production of the
caring economy. Oikonomou et al. (2009) define effciency as the
ratio between energy input and output services that can be modified
with technical improvements (e.g., technology substitution) and
differentiate it from the concept of energy saving, linked to human
behavior. Furthermore, Patterson (1996) defined set of indicators
used to measure energy efficiency from a physical and economic
perspective, focusing on the energy consumption caused by each
segment of the national economy, concluding that more attention
needs to be given by policy analysts to manage this concept.
While Tanaka (2008) explored different ways to measure energy
efficiency performance: absolute energy consumption, energy
intensity and the discusion of a specific energy-saving technology
or thermal efficiency. Besides that, Haas (1997) defined energy
efficiency indicators for the residential sector, considering key
factors for their normalization and comparison, concluding the
need for more disaggregated indicators and lifestyle studies.
In that sense, Pérez-Lombard et al. (2012) revised the main
methodological problems for the construction of energy effciency
indicators and propose a sequence of actions to tackle these
problems in an ordered fashion: establishing the service quality,
identifying aggregation levels on the effciency pyramid, defining a
magnitude for consumption measurement and choosing a suitable
magnitude to quantify the service provided. The most widespread
energy efficiency indicator is the energy intensity of a country,
defined as the primary energy needed to generate a unit of gross
domestic product (International EnergyAgency, 2018). Moreover,
according to Solnørdal and Foss (2018), energy efficiency can be
achieved from “technological improvements” (Wang et al., 2017),
“improved supply chain management” (Marchi and Zanoni, 2017),
“implementation of environmental management systems (EMS)”
(Zobel et al., 2016), “environmental regulation” (Lin et al., 2017),
and “economic motives” (Worrell et al., 2009)”.
development of a nation (Soroka et al., 2019). Therefore, this is
once again confirmed that a comprehensive study of the factors
affecting energy efficiency for manufacturing sector is essential.
In addition, research that covers the role of energy efficiency in
sustainable development is crucial for business operators and
policy-makers towards sustainable development. This research is
expected to make significant contributions to theory and practice.
Accordingly, from the theory point of view, authors expect that this
study’s contribution is inclusive of (1) Comprehensive knowledge
of energy efficiency; (2) Determinants of energy efficiency
in manufacturing sector in emerging country; (3) Influencing
level of each factor to energy efficiency of manufacturing firm;
(4) The importance of energy efficiency for economy, society and
environment; (5) Prospects of energy efficiency to the sustainable
development at the firm perspective and national perspective;
Additionally, from the practice point of view, contributions of this
study is expected to be inclusive of (1) For management level of
manufacturing firms to have practical and clear strategy for energy
management and (2) appropriate actions and behaviors based on
the defined determinants of energy efficiency for improving energy
efficiency; (3) For policy makers to have appropriate policies to
encourage manufacturing enterprises to improve energy efficiency
in their production and business activities; (4) For economists,
investors or business owners to understand the value of improving
energy efficiency for businesses, society and environment to
make the necessary investment towards sustainable development.
These contributions are perceived very important for sustainable
development in many ways.
The objectives of this study are therefore subjected to these
research questions (1) “What are the determinants for energy
efficiency in emerging country like Vietnam context?” (2) “How
does each factor effect on energy efficiency?” (3) “How to enhance
energy efficiency in Vietnam?” (4) “How energy efficiency impacts
sustainable development in Vietnam?” and (5) What are the
practical applications to be implemented for achieving the defined
values in emerging countries like Vietnam?
This study structure starts with abstract which is designed as a
condensed content of this research. Followed by introduction
part which presented overall about the research scope and the
reasons for this study. The main body of this study includes
different sections presented in order such as literature review
for reviewing relevant studies, research model and hypothesis,
research methodology, results and discussion, conclusion and
limitation. The last part is the references.
2.2 Factors that Impact on Energy Efficiency
2. LITERATURE REVIEW
According to Chwieduk and Chwieduk (2020), design and
construct of building are perceived as important for saving energy
or use energy efficiently. The cleverness of the building’s design
and architecture demonstrates its ability to optimize the ambient
surrounding to minimize energy demands for space heating or space
cooling, simultaneously being able to utilize renewable energy and
waste heat available to the building. It can be said that intelligence
is achieved through the combination of passive and active energy
saving methods, participating in the aspects of architecture, civil
2.1 Energy Efficiency (ENE)
The concept of energy efficiency is diverse depending on
perspectives, approaches, contexts and characteristics of research
subjects. According to Ku-Hsieh et al. (2020), “Energy efficiency
is a conceptual term that is commonly used across a wide range
of areas such as engineering, architectural design, production
activities, management, organization, economics, and numerous
important policy design and development initiatives”. In
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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”.
Energy-saving actions can also be cut measures (Jansson et al.,
2009), referring to behavior changes such as scheduling, turning
off lights, cutting down on heating or air conditioning and turn off
standby. Saving energy helps reduce greenhouse gas emissions.
In an International Energy Agency (IEA, 2008a) policy scenario,
72% of global CO2 emissions reductions between 2010 and 2020
will come from improved energy efficiency (Knittel et al., 2014).
Energy efficiency measures associate with renewable energy
adoption in the sense that the former reduces energy demand of
fossil fuels so that the latter can further cut future GHG emissions
(RENS21, 2014). Gerpott et al. (2010) found that environmental
and social attitudes have a strong influence on consumers and their
tendency to use green electricity.
materials, electrical equipment and utilities also play a very
important role in achieving energy efficiency. Avoiding energy
needs is the best way to save energy. Energy saving is implied
to be associated with environmental improvement through the
reduction of greenhouse gas emissions as the main contributor
to environmental pollution and climate change. Greenhouse gas
emissions generated during the process of energy production
using traditional energy sources which is known as fossil fuels.
The EU directive promotes the idea of using near-zero energy
for new buildings and stimulates the transformation of existing
refurbished buildings into near-zero ones. Energy savings in
buildings have been supported by other EU regulatory frameworks,
mainly under the EU directive on energy efficiency. The near-zero
energy buildings (NZEB) conceptually use almost no energy so
they are very energy efficient. The low amount of energy that these
buildings require for their efficient use comes mainly from the use
of renewable energy sources (Energy Efficiency Directive, 2012).
In addition, any installation must always be adapted to certain
climate conditions, simultaneously reliable and high efficient
energy and equipment installation, including the heat recovery
ventilation system to optimize complementarities for maximizing
efficiency. Such measures have caused significant reduction of the
final energy demand. In addition, adoption of renewable energy
systems has also reduced the consumption of fossil fuel-based
primary energy. Another important aspect that is necessary for
achieving energy savings is the intelligence of users. Energy
consumption generally depends on user behavior. It can be said
that users basically want to save energy as it’s related to the cost
of using that directly effecting to them on the economic point of
view from both personal perspectives and corporate perspectives
whose are majorly related to energy consumption. From a personal
point of view on costs, saving energy helps to save living costs,
thereby reducing financial pressure and improving the quality of
life. While from a business point of view on economic efficiency,
energy efficiency improves firm’s performance as a way of
increasing operational efficiency by using fewer resources but still
achieving the set goals. In addition, saving the cost of production
and cost of business operation can help reduce the cost of products
and services, increase profitability or achieve price competition
against competitors (Masoso and Grobler, 2010).
Moreover, Strielkowski et al. (2019) had another approach on
energy efficiency by determining that “renewable energy sources
(RES) are gradually becoming one of the key elements in the
process of achieving energy efficiency worldwide”. Energy
efficiency measures is perceived to reduce energy consumption
and save on electricity bills, as well as to reduce the negative
environmental impact of electricity generation (Schandl et al.,
2016; Kuzmin et al., 2019). Reducing energy consumption will
reduce costs and could lead to financial savings for consumers
if the energy savings offset the additional costs associated with
implementing energy efficient technologies. In many countries,
energy efficiency is also recognized as a national security benefit,
as it can be used to reduce energy imports from abroad and can
slow the rate of energy consumption when domestic energy
is running depleted (Strielkowski et al., 2019). Furthermore,
according to Stagnitta et al. (2020), three considerable and possible
scenarios for energy efficiency are (1) heating, ventilation and air
conditioning (HVAC) appliance efficiency upgrading; (2) wall
and ceiling insulation; and (3) a combination of both (1) and (2).
Accordingly, the results show that scenario one helps save 52%
of energy by improving equipment efficiency and substitute
energy carrier; scenario two generates 38% saving of energy
by improving efficiency by wall and ceiling insulation while
scenario three saves 47% by combining equipment efficiency
improvement, energy carrier substitution and wall and ceiling
insulation. Another approach was taken by Solnørdal and Foss
(2018) for the motivating drivers for energy efficiency. The
findings was majorly organizational related; economic related;
market related and policy instruments related.According to Boyd
and Curtis (2014), management practices in general impact the
energy efficiency of manufacturing firm. Moreover, according
to Martin et al. (2012) and Bloom et al. (2010), management
practices includes two categories which are “generic management
practices” and “climate friendly management practices” that both
has positive impact on energy efficiency of firms. From the firm-
level perspective, both the individual manager’s involvement and
management practices influence firms’ energy efficiency. This
includes managers’ perception and sensitivity to environmental
problems (Kostka et al., 2013); their ambitions (Thollander
et al., 2008) and commitment (Chiaroni et al., 2016). It is also
important for top managers to participate in energy efficiency
projects because without such individual involvement, managers
can consider energy efficiency improvement is secondary in
In addition, Mrówczyńska et al. (2018) defined that energy
efficiency depends on many factors, such as climate, building
design, materials, technology, energy carriers, how heat is applied
and the tightness of bulk heads, but also depends on national and
local policies (Gorbacheva and Sovacool 2015). The determinants
of energy use vary depending on perceptions of each user,
however, in general it can be said that financial factor play an
important role in influencing behavior of energy use, thus it should
be considered in any strategy for increasing energy efficiency.
Simultaneously, it is important to consider public awareness and
willingness to change their behavior in a more positive way to gain
efficient use of energy (Asadi et al., 2014). Moreover, according to
Dato (2018), there are different ways to improve energy efficiency
such as (1) “innovation can lead to the equal or greater output with
less energy”; (2) “cutting out wasted energy reduces energy needed
while maintaining output” and (3) “heating technologies, such as
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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
time”. While Moure-Eraso (2003) had different approach for
sustainable development by uncovering the concept of sustainable
development model which include three aspects such as (1) state
power; (2) social power and (3) necessity of a concrete roadmap for
action. Accordingly, state power is conceptually defined towards
political perception while social power is conceptually defined
where “social community and environmental factors are considered
simultaneously and with the same priority of economic factors,
cultural transformation”; and roadmap for action is conceptually
defined as “The premium that all societies place in living in
a clean environment is indeed global. Poor and rich countries
consider it an imperative. The United Nations has understood this
human desire and has been able to articulate through documents
and declarations this universal desire (Brundtland, 1987; UNEP,
1992).” Moreover, Strandberg and Brandt (2001) defined that the
concept of sustainable development is quite complex as it interacts
with at least four separate systems includes (1) “ecosystem
function and change”; (2) “economic performance and change”;
(3) “technological performance and change” and (4) “social
performance and change”. In overall, it’s existing in current
literature that energy efficiency has positive significant impact
on sustainable development at both organizational and national
perspectives, however, in this study, authors focus on national level
as a macro approach on sustainable development.
In addition, firm with a clear energy strategy can stimulate energy
efficiency in firm (Cagno et al., 2015). Furthermore, it is possible
that those with a dedicated environmental manager will be more
likely to enter into voluntary environmental agreements, through
their energy goals and monitor their energy use compared to firm
who do not have environmental manager (Martin et al., 2012).
The above reviews show that researches on energy efficiency
have been taken approach in a diverse way. However, for the
Vietnam context, authors hypothesized the determinants of energy
efficiency and its relationships with energy efficiency as follows:
H1: Using energy efficient technologies positively impact on
energy efficiency
H2: Energy consumption initiatives positively impact on energy
efficiency
H3: Construction and design positively impact on energy
efficiency
H4: Appliances and equipment positively impact on energy
efficiency
H5: Management practices positively impact on energy efficiency .
2.3 Energy Efficiency (ENE) and Sustainable
Development (SDE)
Sustainable development was defined as “the development
that meets the needs of the present without compromising the
ability of future generation to meet their own needs” (World
Commission on Environment and Development, 1987). Energy
efficiency is globally perceived very important to national
sustainable development. According to Soroka et al. (2019),
energy efficiency offers significant benefits for environment,
economy and society by reducing greenhouse gas emissions and
other pollutants, limiting climate change, limiting risks due to
uncertainties that may happen due to fuel’s price fluctuations
and source depletion those are for driving national sustainable
development. In addition, according to REN21 (2016), “There is
growing recognition worldwide that energy efficiency can play
a key role in reducing energy-related emissions and that it can
provide multiple economy-wide benefit– such as enhanced energy
security, reduced fuel poverty and improved public health”.
Moreover, Dato (2018) determined that energy efficiency can play
a key role in reducing the energy intensity of economic activity,
avoiding the need for significant new supplies, while reducing
dependence on imported fuels and potential fluctuations in energy
prices (UNEP, 2009). While Ku-Hsieh et al. (2020) defined that
“Energy efficiency is undoubtedly a critical issue concerning the
sustainability of civilization”. According to IEA (2012), energy
efficiency have significant potential effects on outputs between
0.8% and 1.3% of GDP.
Table 1 below sets out the findings and limitations of recent studies
on energy efficiency related.
Table 2 presents the theories related to energy efficiency and
sustainable development in this research context.
3. RESEARCH MODEL AND HYPOTHESIS
As shown in the Table 1, studies on energy efficiency were
taken from different perspectives, different context and different
prospect expectations. However, it mainly focused on either energy
efficiency and sustainable development or ways for increasing
energy efficiency of drivers for energy efficiency. None of these
studies specifically focused on a holistic model that accounts
for determinants for energy efficiency and the effects of energy
efficiency on sustainable development. In addition, there is a
lack of studies for manufacturing sector while the manufacturing
sector is seen as a core force to focus on improving energy
efficiency to mitigate climate change issues, especially in emerging
country. Moreover, reduced energy costs are crucial for industrial
companies to maintain competitive advantage for sustainable
development (Hart, 1995; Worrell et al., 2009) and at the national
perspective of sustainable development (Soroka et al., 2019).
In overall, authors perceive that it’s crucial to have a holistic
research on factors that impact on the energy efficiency and the
roles of energy efficiency on sustainable development. Thus, the
research model of this paper is identified as Figure 1 below. This
model used to explore the relationships between energy efficiency
(ENE) and sustainable development (SDE), importantly with the
variables as factors that impact on ENE includes (1) Using optimal
technologies (UBE); (2) Energy resource alternative (ERE);
(3) Construction design (CDE); (4) Appliances and equipment
The relationship between energy efficiency and sustainable
development is therefore hypothesized as follow:
H6: Energy efficiency positively impact on sustainable
development.
2.4 Sustainable Development (SDE)
According to Dasgupta (2007), “sustainable development is an
economic programme along which average well-being of present
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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
in Italy so the
(2016)
out for energy efficiency and
sustainable development.
Focuses on the financial
sample of 68 Italian ESCOs, savings. This study provides an important
analysis was carried out on
the balance sheet indicators (ESCO) industry in Italy from a financial
description of the energy service companies finding might
not be able to
standpoint, results highlight the importance represent for
of their work to promote sustainable other industries
development in the territory and strives for and other
reliability of Energy Service
Companies (ESCO) industry
in Italy by using the Z” score
model and observing the trend
of Z” values from the year
2010 to the year 2014.
based.
contribution related to a still new field in
Italy.
regions.
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
towards energy
efficiency at UPF
in Brazil.
development. Focuses recent
actions of energy efficiency
implemented by University of
Passo Fundo, a higher education
institution located in the south
of Brazil, and their contributions
to Goal 7.
efficiency actions applied at towards energy efficiency focused in
the university.
lightening, photovoltaic solar power
generation and free energy market.
Yang et al.
(2017)
Research topic was about
energy efficiency, ownership
structure and sustainable
development. Focuses on the
impact of difference energy
investment behaviors between
China’s state-owned entities
and non-state-owned business
on China’s Total Factor
Empirical analysis was
conducted using the
DEA-SBM Model to
estimate the Total Factor
Energy Efficiency (TFEE)
of investment by entities
with different ownership
TFEE of energy investment by state-owned Using single-
and non-state-owned economics is found
low from optimal level. Moreover, it’s
different from cities, provinces in China,
especially the most developed cities,
provinces with the most strict environment
regulation have kept an optimal record of
factor energy
efficiency
indicators, in
China.
structures (state-owned and TFEE which represents the highest energy
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
and smart home aspects.
energy performance of
buildings.
household sector
Mrówczyńska Focuses on social and
Data were obtained from
standardized interviews
with Zielona Góra,
Poland inhabitants and
the Town Energy Audit
documentation. The data
were analyzed using an
artificial neural network
Contribution to current knowledge
demonstrates the ability to invest
hierarchically, varying for buildings and
neighborhoods, allowing for fair public
funding.
Focused
approach,
household sector.
et al. (2018)
infrastructure conditions
to reduce energy costs and
improve energy efficiency of
buildings in the context of the
local energy policy.
Dato (2018)
Focuses on investing in energy Adopted empirical analysis The first findings is that there are
Focused
efficiency, renewable energy
adoption and household
behavior from organization
for economic development
(OECD) countries.
with information collected
by survey on household
characteristics (age, income, investment and renewable energy adoption
education), environmental
attitudes (environmental
alternative or complementary relationships approach,
between the decisions on energy efficiency household sector.
depending on the threshold of the
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...)
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Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country
Table 1: (Continued)
Author
Strielkowski
et al. (2019)
Context
Methodology
Findings/Contributions
Limitation
Focused
approach,
Focuses on innovative policies Employed empirical
Energy efficiency depends on a smooth
transition to a low-carbon future.
This transition can be enhanced by an
on energy efficiency and
household use of renewable
energy.
analysis, the data was
obtained from a consumer
household survey conducted increased awareness of environmental and
household sector.
by the Customer-Led
sustainability issues, as well as a transition
to renewable energy sources.
Revolution (CLNR). The
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.
Adopted analysis of
Cristescu et al. Focuses on increasing energy
Directions in relation to techniques,
Focused
(2017)
efficiency which is mentioned
at INOE 2000-IHP Institute in
the field of energy efficiency
and functional optimization
of systems that obtain clean
energy from renewable
resources.
methods for increasing
energy efficiency and
methods and ways in terms of structure and renewable
operation for increasing energy efficiency
and optimizing the renewable energy
conversion system.
energy source.
optimizing the operation
of clean energy production
systems from renewable
sources, presented some
practical examples in the
field of wind energy and
hydraulic energy of flowing
water.
Solnørdal and Focuses on energy efficiency
Foss (2018) gap and systematic evaluation
Adopted an evidence-based First, economic and organizational
review methodology which dynamics are the most prominent stimulus mainly carried
Studies are
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
of firms. Third, these constraints imply
a potential mismatch between energy
policymakers and energy managers
who understand which factors are most
important for achieving higher energy
efficiency in manufacturing firms.
and Western
European
in manufacturing enterprises.
literature on drivers to
energy efficiency in
countries, despite
the fact that
energy demand
will increase in
the future outside
of these regions.
manufacturing firms at the
firm level. The systematic
literature review (SLR) is
based on peer-reviewed
articles published between
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
and new ideas for finding a
concise and vivid metric for
energy efficiency that remains
a controversial and intriguing
topic.
using sample taken
from the World Bank’s
World Development
and propose a new metric for it.
proposed in
this article is
more suitable
for analyzing
economic,
commercial
and managerial
issues at an
aggregate level,
such as region
or country
Indicators database,
covers 20 Organization for
Economic Co-operation
and Development (OECD)
economies and covers the
period 1992–2014.
level. It is less
applicable for
the assessment
of the energy
capability of
specific products
or equipment.
Source: Author’s Review
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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
(1973)
Evolutionary theory
This theory has great potential to study problems of energy saving and energy
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
(1976)
Energy consumption and energy efficiency are areas of manager’s activity and are an
integral part of the planning and forecasting of activities.
[60] Heider (1944,
1958)
Attribution theory
It’s about analysis of actions like wanting, trying and “can” which is majorly relative
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
(2002)
Self-determination theory
Distinguishes between external sources of motivation (pay/punishment) and those of
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
H2
Energy Consumption
Initiatives (ERE)
Sustainable
Development
(SDE)
H3
Energy
Efficiency
(ENE)
H61
Construction &
Design (CDE)
H4
Appliances &
Equipment (AEQ)
H5
Management Practices
(MCE)
Source: Author’s Construct
(AEQ) and (5) Management practices (MCE). In overall, this
model consists of five independent variables include UBE; ERE;
CDE; AEQ and MCE, one meditating variable which is ENE and
one dependent variable which is SDE.
H2: Energy consumption initiatives positively impact on energy
efficiency
H3: Construction and design positively impact on energy efficiency
H4:Appliances and equipment positively impact on energy efficiency
H5: Management practices positively impact on energy efficiency
H6: Energy efficiency positively impact on sustainable development
The variables of this study were constructed that UBE has 4 items,
ERE has 5 items, CDE has 4 items; AEQ has 4 items and MCE
has 4 items; ENE has 4 and SDE has 4. In overall, this model has
5 independent variables, 1 mediwwow summarizes the constructs
of this model.
Table 3 summarizes constructs of the proposed research model
of this study.
4. RESEARCH METHODOLOGY
Finally, this model is hypothesized as following:
H1: Using energy efficient technologies positively impact on
energy efficiency
This study uses a combination of qualitative and quantitative
methods to take advantage of both research methods to
comprehensively evaluate the relationship of the variables of the
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Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country
Table 3: Constructs
Constructs
Items
UBE1
Description
References
Using Energy
Efficient
Technologies
(UBE)
Energy
Consumption
Initiatives (ERE)
Employ the latest energy efficient technology for direct manufacturing activities.
Employ the latest energy efficient technology for general operating activities.
Employ technology for being able to use renewable energy.
Employ windows and building envelope technology for energy saving.
Promote renewable energy applications.
Singh (2019); Omer (2014);
Strielkowski et al. (2019);
Kuzmin et al. (2019);
UBE2
UBE3
UBE4
ERE1
ERE2
Masoso and Grobler (2010);
Chwieduk and Chwieduk
(2020); Pérez-Lombard et al.
(2012); Stagnitta et al. (2020);
Mrówczyńska et al. (2018);
Gorbacheva and Sovacool
(2015); Solnørdal and Foss
(2018); Boyd and Curtis
Increase in share of renewable energy consumption on the total energy
consumption.
ERE3
ERE4
ERE5
CDE1
Optimize passive cooling by natural ventilation.
Optimize passive lighting by the light of nature.
Improve behavior of energy users to be efficient-oriented.
Building design to optimize natural ambient resources such as ventilation, light
and heat.
Construction and
Design (CDE)
(2014); Kostka et al. (2013);
REN21 (2016); IEA (2014);
EIA (2017); Dasgupta (2007)
CDE2
CDE3
CDE4
AEQ1
Building orientation to save energy.
Construction materials used to save energy.
Building design to allow adoption of renewable energy technology.
Use low energy equipment and appliances.
Appliances and
Equipment (AEQ) AEQ2
Upgrade equipment efficiency.
AEQ3
AEQ4
Perform periodic maintenance.
Replace energy carriers cyclically.
Management
Practices (MCE)
MCE1 Perception of leaders about environment and society related issues.
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.
Consume same energy inputs for higher outputs.
Increase renewable energy consumption.
Sustain stable source of energy to serve manufacturing and business activities.
Increase Gross Domestic Products (GDP) per capita
Reduce greenhouse gas emissions (GHG)
(ENE)
ENE2
ENE3
ENE4
SDE1
SDE2
SDE3
Sustainable
Development
(SDE)
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
and details about the perspectives of the determinants of energy
efficiency (ENE) and the relationship of ENE and sustainable
development (SDE). In addition, qualitative research in the form
of in-depth expert interviews in a face-to-face model allows the
authors to collect different attitudes and behaviors that are likely
to lead to the same action or decision. The authors have prepared
open-ended interview questions to encourage the interviewees to
answer in the most comfortable, practical way and not limited to a
certain framework. The types of respondents chosen to interview
are economists and experts, firms’ executives and entrepreneurs.
There are 50 respondents, of which, there are 15 economists and
experts, 27 executives and 8 entrepreneurs. The expected outcome
of this stage is the final questionnaire relevant to the research
context and ready for quantitative research. The questionnaire
constructed using the Likert 7 scale indicates that the score range
from 1 (strongly disagree) is gradually increasing to 7 (strongly
agree).
model. Accordingly, the sample size should be calculated 5-10
times as much as the items identified in the study. This study has
a total of 29 items, so the required sample size is 290. However,
in order to avoid potential risks that can occur during the survey
such as missing answers from target respondents, unsatisfied
answers and so on, authors decided to initially proceed with 520
samples at the simple method of collecting random probability
samples. Survey subjects include experts (about 20%), firms’
executives (about 45%), and management levels (about 35%)
in the South of Vietnam, with no age limit for respondents.
The survey was implemented by distributing questionnaires to
the target respondents through email and direct delivery. The
collected questionnaires were screened and selected the satisfied
questionnaires. As a result, there was 491 met the specification
as indicated criteria. Those data were then used for analysis using
Partial Least Squares (PLS).
5. RESULTS AND DISCUSSION
Two data types were used in this study which are classified as
primary and secondary. In this study, secondary data are collected
related to energy consumption, energy efficiency, energy policy
and incentives, related to global agreement, etc. Primary data was
collected by questionnaire survey with initial sample size of 520.
Hair et al. (2010) proposed that the principal allow the sample size
calculation based on the number of items of the proposed research
5.1. Assessing Reliability of the Scale
Reliability assessment is to check the consistency levels between
multiple measurements of a variable (Hair et al., 2010). This study
assesses the consistency of the entire scale and its overall reliability of
each factor of productivity values by simultaneously using Cronbach’s
Alpha and composite reliability indexes with expect to bring all
necessary basis into consideration for the most appropriate conclusion
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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
UBE, 0.821 of CDE, 0.847 of MCE; 0.852 of SDE, 0.858 of ENE,
0.877 of ERE and 0.907 of AEQ. Thus, it can be concluded that the
measurement scale of this research model is good. However, authors
would like to continue further investigation to strongly affirm the
reliability of the scale, therefore composite reliability value was used
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
of MCE, 0.901 of SDE and ERE, 0.904 of ENE and 0.935 of AEQ.
According to Hair et al. (2016), the aggregate reliability between
0.7 and 0.95 represents a satisfactory level of reliability. Therefore,
in overall, these results confirm that the reliability of this scale is
good and acceptable. Table 4 below is summary of these results.
Hair et al. (2010) defined that the purpose of assessing validity
is to determine how well is the construct explained the variables
under the construct. In addition, it’s to assess practicality of the
data collected and its reflection on the study context.According to
Anderson et al. (1988), the validity of research concepts includes
convergent validity and discriminant validity of scales.
5.3. Convergent Validity
According to Fornell and Larcker (1981), the convergence value is
used to illustrate the full convergence of the measurement items on
their respective structures. While Hair et al. (2010) suggested that
theAVE index should be over or equal to 50%, the extracted factors
could be more explainable than any other extract combinations.
Table 6 shows the results of EVA and external loading factors.
In which external loading factors values are all greater than 0.7
and EVA are all greater than 0.5. These values exceed the level
mentioned, it indicates a sufficient degree of convergent validity,
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
variables are focused on the research concept that it is involved
in or convergent validity is supported.
In addition, the indicator reliability was checked by assessing outer
loading’ results. Table 5 below shows the results of outer loading
where all values are greater than 0.7. It means that all individual
indicators are reliable.
Table 4: Cronbach’s alpha and composite reliability results
Variables
AEQ
CDE
ENE
ERE
MCE
SDE
UBE
Cronbach’s alpha
0.907
Composite reliability
0.935
0.881
0.904
0.901
0.897
0.901
0.863
0.821
0.858
0.877
0.847
0.852
0.804
5.4. Discriminant Validity
HTMT was assessed to reaffirm the discriminant validity of the
measurement model. HTMT is a shorty written form of Heterotrait-
Monotrait Ratio which is a new criterion to assess discriminant
validity. According to Kline (2011), HTMT value closes to 1
indicate a lack of discriminant validity. Its threshold value should
be 0.85. It means that if HTMT value of research model is smaller
than 0.85 then it can be concluded that discriminant validity of the
research model is established. In this study, HTMT values are all
<0.85 so discriminant validity is supported. Table 7 summarizes
the HTMT results of this study.
Source: Authors’ analysis
Table 5: Results of outer loading
Variables AEQ CDE ENE ERE MCE SDE
UBE
AEQ1
AEQ2
AEQ3
AEQ4
CDE1
CDE2
CDE3
CDE4
ENE1
ENE2
ENE3
ENE4
ERE1
ERE2
ERE3
ERE4
ERE5
MCE1
MCE2
MCE3
MCE4
SDE1
SDE2
SDE3
SDE4
UBE1
UBE2
UBE3
UBE4
0.867
0.900
0.891
0.878
0.815
0.775
0.800
0.831
5.5. Evaluation of Structural Model
According to Falk and Miller’s (1992), the model is called good
when the R2 index is satisfactory, meaning that the R2 index are
greater than 0.1. Table 8 below shows the results that both R2 values
0.847
0.852
0.869
0.780
Table 6: Convergent validity
Variables
AEQ
CDE
ENE
ERE
MCE
SDE
UBE
External loading factors
0.867-0.900
AVE
0.782
0.649
0.702
0.647
0.685
0.697
0.612
0.834
0.833
0.859
0.718
0.768
0.775-0.831
0.780-0.869
0.718-0.859
0.799-0.864
0.712-0.884
0.753-0.824
0.826
0.864
0.821
0.799
Source: Authors’ analysis
0.860
0.884
0.872
0.712
Table 7: Heterotrait-monotrait results
Variables AEQ
CDE ENE
ERE
MCE
SDE
CDE
ENE
ERE
MCE
SDE
UBE
0.378
0.569 0.402
0.042 0.409 0.081
0.544 0.411 0.652 0.223
0.492 0.377 0.476 0.112
0.188 0.251 0.356 0.144
0.785
0.753
0.765
0.824
0.397
0.190
0.393
Source: Authors’ analysis
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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
evaluation (Cenfetelli et al., 2009; Kline, 1998; Petter et al., 2007).
It is commonly recommended values are 10, 5, and 3.3; meaning
that a VIF equal to or greater than the suggested threshold value
then it could be concluded the existence of collinearity among the
variables or called in other word multicollinearity. Results of this
research show that VIF values are all smaller than 3.3 so it can
be concluded that there is no multicollinearity problem among
variables of the research model (Petter et al., 2007). Table 11
below summarizes VIF values of this model.
R2 adjusted values of energy efficiency (ENE) respectively are
0.476 and 0.470; R2 value and R2 adjusted values of sustainable
development (SDE) respectively is 0.165 and 0.164 which are
satisfied. Therefore, the structural model is considered satisfactory.
The next step of process is analyzing model-of-fit to determine its
fitness and its validity. This analysis was conducted by assessing
certain indices such as SRMR. Those values in this study satisfied
the defined acceptance thresholds of the previous authors of the
relevant studies. Table 9 below summarizes the model-of-fit
indices with full name, the acceptance thresholds and results.
Overall, it can be concluded that this model is fit and valid.
Further, the significance of path coefficient analysis was conducted
using Bootstrap method using 1000 emulators. Bootstrapping
assigns measures of accuracy (bias, variance, confidence intervals,
prediction error, etc.) to sample estimates” (Efron and Tibshirani,
1993). The bootstrapping result shows that the statistical value t
>1.96 and p-value <5% which confirm hypotheses of this research
model. It can be concluded that the research model of this study
and research data is determined suitable, also, hypotheses of this
study is confirmed accepted. In conclusion, the positive impacts of
UBE on ENE; ERE on ENE; SDE on ENE; AEQ on ENE; MCE
on ENE are confirmed in this study. Moreover, ENE has positive
significant relationship with SDE is also confirmed in this study.
In addition, Table 10 shows path coefficients of variables of the
research model. It indicates that all the defined determinants for
energy efficiency (ENE) have positive significant impact on ENE.
Results show that among five variables that impact on ENE, MCE
has strongest impact on ENE at 0.399, the next one is AEQ at
0.222, followed by ERE at 0.219, UBE at 0.203 and CDE at 0.161.
Results also show that ENE has positive significant relationship
with SDE at 0.407 as coefficient. The results indicated that for
manufacturing firms in Vietnam context, determinants for energy
efficiency defined are (1) Using energy efficient technologies;
(2) Energy consumption initiatives; (3) Construction and design;
(4) Appliances and equipment and (5) Management practice. It
implies that for manufacturing firms for achieving efficient use of
energy for manufacturing and overall operation activities, those
fields are determined that firms should prioritize such as upgrade
technologies; promote initiatives on energy use; design building
for utilizing ambient surroundings as passive energy use for
instance ventilation, heat and so on; use low efficient appliances
and equipment and period maintenance; role of leadership in
energy consumption management and energy efficiency projects.
Regarding relationship between ENE and SDE, results show
that ENE plays a very important role in achieving sustainable
development (SDE). It implies that each unit of energy used
effectively will contribute to sustainable development including
economy, society and environment.
The below Figure 3 shows bootstrapping results and Table 12
presents bootstrapping values.
Table 12 below shows the resulting indicators of bootstrapping
which are satisfactory for hypotheses to be accepted.
In general, through the evaluation process carried out by suitable
methods, the results are determined satisfactory and accepted on
the basis of the acceptability threshold of the relevant indicators
confirmed by previous studies. Therefore, it can be concluded that
this research model and structure is reliable, valid and suitable for
the research context and confirmed research hypotheses.
The findings of this research coincide with some in the
current literature that adoption of improved technologies
has positive impact on energy efficiency (Oikonomou et al.,
2009; Mrówczyńska et al., 2018); initiatives on energy use
has significant impact on energy efficiency (Chwieduk and
Chwieduk 2020); construction and design positively drive
energy efficiency (Chwieduk and Chwieduk 2020); appliances
and equipment has positive effect on energy efficiency (Stagnitta
et al., 2020) and management practices of firm positively
drive energy efficiency (Boyd and Curtis, 2014; Martin et al.,
2012; Bloom et al., 2010). Accordingly, results indicated that
management practice plays the most important role for driving
energy efficiency. It implies that firms with a strong leadership
in energy efficiency projects and high sensitivity with social and
Figure 2 below is the result analysis of this research model.
Multicollinearity was checked by assessing VIF (variance
inflation factors). Collinearity is a condition in which a number of
independent variables are highly correlated. The existing literature
Table 8: R square values
Variables
ENE
R2
0.476
R2 Adjusted
0.470
SDE
0.165
0.164
Source: Authors’ analysis
Table 9: Model-fit analysis
Model-of-fit indices
Full name
Acceptance thresholds
Values (Saturated model -
Estimated model)
0.063-0.079
Concluded
SRMR
(Standardized root mean squared
residual approximation
0.00 < Value < 0.08
(Hu and Bentler, 1999)
Good fit
Source: Authors’ analysis
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Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country
environmental problems will well promote energy efficiency
Table 10: Path coefficient
of firms. Additionally, firms that pay attention to low energy
appliances and equipment will remarkably enhance the overall
energy efficiency. Besides that, firms those concern on the
initiatives on energy consumption and energy use behavior
will significantly improve energy efficiency of firms in overall
operation. Next is technologies-related and construct and design-
related those also significantly contribute to enhancement of
energy efficiency of firms.
Variables AEQ CDE ENE ERE MCE
SDE UBE
AEQ
CDE
ENE
ERE
MCE
SDE
UBE
0.222
0.161
0.407
0.219
0.399
0.203
Source: Authors’ analysis
Table 11: Variance inflation factors values
Variables
AEQ1
AEQ2
AEQ3
AEQ4
CDE1
CDE2
CDE3
VIF values
2.515
Variables
CDE4
ENE1
ENE2
ENE3
ENE4
ERE1
VIF values
1.892
Variables
ERE3
ERE4
VIF values
2.020
Variables
SDE1
SDE2
SDE3
SDE4
UBE1
UBE2
UBE3
UBE4
VIF values
2.409
2.905
2.813
2.623
1.620
1.628
1.784
2.123
2.161
2.375
1.606
1.948
1.967
2.029
2.229
2.096
2.459
1.980
1.584
2.727
2.675
1.369
1.899
1.934
1.714
1.343
ERE5
MCE1
MCE2
MCE3
MCE4
ERE2
Source: Authors’ analysis
Table 12: Bootstrapping’s results
Path of variables
Original sample
Sample mean
Standard deviation
T statistics
P-values
(O)
(M)
(STDEV)
0.049
0.048
0.045
0.072
0.058
0.034
(|O/STDEV|)
4.523
AEQ→ENE
CDE→ENE
ENE→SDE
ERE→ENE
MCE→ENE
UBE→ENE
0.222
0.161
0.407
0.219
0.399
0.203
0.227
0.152
0.410
0.198
0.393
0.206
0.000
0.001
0.000
0.002
0.000
0.000
3.379
9.013
3.037
6.880
5.933
Source: Authors’ analysis
Figure 2: Result analysis of research model
Source: Authors’ analysis
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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
positively significantly drive sustainable development at the
national perspective (Soroka et al., 2019; REN21, 2016; Dato,
2018; UNEP, 2009; Ku-Hsieh et al., 2020). It implies that firms that
efficiently use of energy significantly contribute to the sustainable
development of nation, in this research context, emerging nation
as Vietnam.
management and (2) appropriate actions and behaviors based
on identified determinants of energy saving to improve energy
efficiency; (3) For policy makers to have appropriate policies to
encourage manufacturing enterprises to improve energy efficiency
in production and business activities; (4) For economists, investors
or business owners to understand the value of improving energy
efficiency for businesses, society and the environment to make
necessary investments towards sustainable development firm.
These contributions are considered to be very important to
sustainable development in this way or another ways.
In overall, the significance of this study is a holistic concept of
determinants for energy efficiency and roles of energy efficiency
in sustainable development at organizational and national
perspectives in manufacturing sector in emerging country like
Vietnam. This significant contribution is a novelty in this research
context so far in current literature.
7. LIMITATION
Although this study provides interesting results and insights, it
has some limitations. First, this study focuses on manufacturing
sector, future study should conduct on other sector which is not
available in literature. The second limitation is in relation to data
collection which was collected from random chosen companies
in manufacturing sector it might be problematic regarding its
representativeness if taking into consideration of a specific industry
category. The third limitation related to geography that this study
was conducted with a selective participants of manufacturing
firms operating in industrial zones in the South of Vietnam. As a
consequence, its relevant findings might not be representative for the
other regions or other participants in different contexts. In general,
the findings may not provide the best support for different context
essences, or on the other hand, it may be impractical and may apply
to different contexts. In general, these limitations provide chances
for future researches continue to contribute to the literature of energy
efficiency, its determinants and its influence on the sustainable
development in different context and different research subject.
6. CONCLUSION
The defined contributions of this study enable conclusion that
this research has a significant contribution in theory and practice
with this research context.Accordingly, from a theoretical point of
view, the contributions are majorly subjected to (1) Comprehensive
knowledge of energy efficiency; (2) Factors determining energy
efficiency in manufacturing in emerging countries especially
Vietnam; (3) The degree of influence of each factor on the energy
efficiency of production enterprises; (4) The importance of
energy efficiency for the economy, society and the environment;
(5) Prospects of energy efficiency for sustainable development
from the organizational and national perspectives; In addition,
from a practical point of view, the contributions of this study to
be subjected to (1) For the management level of manufacturing
enterprises to have a realistic and clear strategy for energy
19
International Journal of Energy Economics and Policy | Vol 11 • Issue 2 • 2021
Tiep, et al.: Energy Efficiency: Determinants and Roles on Sustainable Development in Emerging Country
energy and household behavior: Evidence from OECD countries.
The Energy Journal, 39(3), 1-2.
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