Effects of ecommerce on energy consumption in the Netherlands

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Miles King
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1 Effects of ecommerce on energy consumption in the Netherlands Marcel Kleijn NEA Transport research and training, BESTUFS Workshop, the Hague May 10, 2001

2 Effects of ecommerce on energy consumption in the Netherlands Content 1. Background 2. Research question 3. ICT use 4. Effects on energy consumption 5. Results - teleshopping - ecommerce 6. Conclusions

3 Background Effects of ecommerce on energy consumption in the Netherlands Novem: conducted a research on the effect of different government policies on the energy consumption NEA, together with ECN, has analysed the effect of different policies on the energy consumption. One particular policy: stimulation of use of ICT

4 Research question Effects of ecommerce on energy consumption in the Netherlands What is the effect of ICT use on energy consumption in the Netherlands? Methodology: - define ICT use - consider direct effects only

5 Effects of ecommerce on energy consumption in the Netherlands ICT use Telecommuting Teleshopping ecommerce Videoconferencing / Fleet management systems Route navigation Dynamic traffic management

6 Types of effect Effects of ecommerce on energy consumption in the Netherlands Substitution; avoiding transport due to ICT Efficiency; better use of capacity and infrastructure Generation; more transport due to ICT

7 Types of effect (2) Effects of ecommerce on energy consumption in the Netherlands Substitution Efficiency Generation Telecommuting Teleshopping ecommerce Videoconferencing/ Fleet management systems Route navigation Dynamic traffic management

8 Effects of ecommerce on energy consumption in the Netherlands Teleshopping Teleshopping is not only shopping on the Internet, but also: mail order TV shop

9 Teleshopping (2) Effects of ecommerce on energy consumption in the Netherlands Old situation: Factory Shop

10 Teleshopping (3) Effects of ecommerce on energy consumption in the Netherlands New situation: Factory

11 Teleshopping (4) Effects of ecommerce on energy consumption in the Netherlands New situation (alternative): Factory DC

12 Teleshopping (5) Effects of ecommerce on energy consumption in the Netherlands Positive effects: more efficient transport, due to round trips potential savings of 20% to 40 %

13 Effects of ecommerce on energy consumption in the Netherlands Teleshopping (6) Negative effects: average shipment size is low more frequent deliveries smaller vehicles transport over longer distances small delivery time windows combined shopping; traditional shopping and teleshopping

14 Teleshopping (7) Effects of ecommerce on energy consumption in the Netherlands Combined shopping Factory DC Leads to more transport!

15 Effects of ecommerce on energy consumption in the Netherlands Teleshopping (8) Net effect of teleshopping on total transportation is difficult to estimate.

16 Effects of ecommerce on energy consumption in the Netherlands ecommerce Only consider Business-to-business (B2B) It is difficult to define B2B ecommerce. In the research NEA has used the following definition: ecommerce (B2B) is the exchange of information between companies, through dedicated communication networks or through the Internet.

17 Effects of ecommerce on energy consumption in the Netherlands ecommerce (2) ecommerce has many different effects on the energy consumption. Limitation of research: only consider direct effects on transport.

18 Effects of ecommerce on energy consumption in the Netherlands ecommerce (3) History: before ecommerce there was EDI (Electronic Data Interchange) EDI is exchanging information between companies in a standardised format through dedicated communication networks. Disadvantage of EDI: - high cost - large impact on organisation

19 Effects of ecommerce on energy consumption in the Netherlands ecommerce (4) History: Advantages of EDI: - less mistakes - information sooner available - administration becomes easier - less paperwork - less cost for mailing and phoning Last 5 years; EDI has been replaced by Internet

20 ecommerce (5) Effects of ecommerce on energy consumption in the Netherlands Use of ecommerce in transport: freight exchange systems efficient response / less inventory Net effect: quality of service increases reduction in transport?

21 Effects of ecommerce on energy consumption in the Netherlands Results Hardly any literature Very little practical results available rough estimation NEA: teleshopping and ecommerce lead to a small reduction in the energy consumption

22 Effects of ecommerce on energy consumption in the Netherlands Conclusions Very difficult to quantify the effects of ecommerce on the energy consumption There is a need for more practical results Thank you for your attention!

ICT key driver to a low carbon society

ICT key driver to a low carbon society The need for the right policy framework Workshop on ICT s and Environmental Challenges 22-23 May 2008 www.gesi.org Luis Neves es GeSI Chairman Luis.Neves@telekom.de