Energy

Factors that can play a role in sustaining growth while optimal use of energy - Increasing Localization

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Details: Category: Energy Systems; Published: Monday, 28 April 2014 08:19; Hits: 11751

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(4) Increasing Localization of Production and Consumption:

The transportation of goods has been one of the major consumers of the energy produced. Though the integrated supply chain and logistic management have improved the efficiencies in transportation while making the products available across the world, the localization is ignored vastly. After globalization, transportation has increased significantly and has put a constraint on the fossil fuel. There are a significant opportunities exists where the transportation requirements can be reduced by promoting localization through policies and by using new technologies such as distributed manufacturing. It is worth to highlight a study done by Emma Rathbone (2011) on how food distribution across the world is impacting the total consumption of energy. Some of the examples from the study are:

- Off-Season vegetables / imported vegetables: When you find such stuff at the local super market, certainly it is consuming the fossil fuel significantly to bring it to your door step

- Milk Production:To make the milk dairies productive, centralization of processing unit and large distribution (and collection) network is established adding to significant cost of transportation. There is trend reversal seen in the world where the milk sourcing and consumption is localized.