Multi-objective economic optimization of industrial energy efficiency: Impacts on economic growth, energy markets, and financial sector performance
Year: 2025
Type: article
Abstract: This study examines the economic implications of energy efficiency improvements in industrial cooling systems, analyzing their effects on economic growth, energy production costs, and financial market performance through a multi-objective optimization framework. The research employs econometric methods including the Generalized Method of Moments (GMM), Data Envelopment Analysis (DEA), and panel regression models to assess how technological investments in energy-intensive cooling infrastructure influence firm productivity, energy market dynamics, and financial sector valuations. Using panel data from manufacturing sectors across China's provinces (2010-2023), we quantify the economic returns from optimized energy configurations through three transmission channels: operational cost reduction, total factor productivity enhancement, and energy price stabilization. The optimized systems demonstrate cost reductions of 31.20% and productivity gains of 4.25% compared to conventional technologies, while simultaneously reducing energy market volatility. Furthermore, we develop an economic framework linking microeconomic efficiency improvements to macroeconomic outcomes, incorporating energy derivative pricing, green finance mechanisms, and regional economic multiplier effects. Fixed-effects regression analysis reveals that optimized energy infrastructure generates spillover effects on GDP growth, with each 10% improvement in industrial energy efficiency correlating with 1.2% regional economic growth in energy-intensive provinces. The study introduces entropy generation as a novel measure of economic inefficiency in energy markets, demonstrating that optimized systems reduce economic waste by 67% while enhancing energy security and improving current account balances through reduced energy imports. We analyze the financial sector response through energy commodity markets, green bond issuance, and carbon pricing mechanisms, finding significant positive effects on sustainable investment flows and energy stock valuations. The application of economic optimization models substantiates the theoretical framework linking energy efficiency to economic performance, providing empirical evidence for policymakers designing energy subsidy programs, carbon taxation schemes, and green finance regulations. This research offers comprehensive insights for understanding energy-economy-finance nexus and supports evidence-based policy formulation for sustainable economic development.
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: gold
Estimated APC paid: $1,620
OpenAlex ID: W7117406899