IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v90y2020ics0140988320302152.html
   My bibliography  Save this article

The construction of a comprehensive multidimensional energy index

Author

Listed:
  • Fang, Guochang
  • Tian, Lixin
  • Yang, Zili

Abstract

Energy system is a crucial component of an economy. Measuring the performance and healthiness of energy system is very useful to decision makers. A well-designed energy index could serve such a purpose. Due to complexity of energy system in an economy, we have yet seen a widely accepted and comprehensive energy index in the literature. In this paper, we develop a comprehensive multidimensional energy index (CMEI) based on the harmonic average of multiple sub-indices. We show that CMEI possesses good analytical properties. Using the data from the United States and China, we demonstrate the applicability of CMEI and test some of its desirable properties. Our conclusion is that CMEI can be used in time-series and cross-regional diagnosis and comparison of energy systems and serves as a simple and handy tool for policy makers.

Suggested Citation

  • Fang, Guochang & Tian, Lixin & Yang, Zili, 2020. "The construction of a comprehensive multidimensional energy index," Energy Economics, Elsevier, vol. 90(C).
    • Handle: RePEc:eee:eneeco:v:90:y:2020:i:c:s0140988320302152
    DOI: 10.1016/j.eneco.2020.104875
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988320302152
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2020.104875?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Troster, Victor & Shahbaz, Muhammad & Uddin, Gazi Salah, 2018. "Renewable energy, oil prices, and economic activity: A Granger-causality in quantiles analysis," Energy Economics, Elsevier, vol. 70(C), pages 440-452.
    2. P. Zhou & F. Wu & D. Q. Zhou, 2017. "Total-factor energy efficiency with congestion," Annals of Operations Research, Springer, vol. 255(1), pages 241-256, August.
    3. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    4. Ang, B.W., 2006. "Monitoring changes in economy-wide energy efficiency: From energy-GDP ratio to composite efficiency index," Energy Policy, Elsevier, vol. 34(5), pages 574-582, March.
    5. Ye, Hong & Long, Linshuang & Zhang, Haitao & Zou, Ruqiang, 2014. "The performance evaluation of shape-stabilized phase change materials in building applications using energy saving index," Applied Energy, Elsevier, vol. 113(C), pages 1118-1126.
    6. Fang, Guochang & Tian, Lixin & Fu, Min & Sun, Mei & Du, Ruijin & Lu, Longxi & He, Yu, 2017. "The effect of energy construction adjustment on the dynamical evolution of energy-saving and emission-reduction system in China," Applied Energy, Elsevier, vol. 196(C), pages 180-189.
    7. Maciejowska, Katarzyna, 2020. "Assessing the impact of renewable energy sources on the electricity price level and variability – A quantile regression approach," Energy Economics, Elsevier, vol. 85(C).
    8. Zhao, Xiaomeng & Liu, Chuanjiang & Sun, Chuanwang & Yang, Mian, 2020. "Does stringent environmental regulation lead to a carbon haven effect? Evidence from carbon-intensive industries in China," Energy Economics, Elsevier, vol. 86(C).
    9. Hayat, Farah & Pirzada, Muhammad Daniel Saeed & Khan, Abid Ali, 2018. "The validation of Granger causality through formulation and use of finance-growth-energy indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 1859-1867.
    10. Yu, Huayi, 2012. "The influential factors of China's regional energy intensity and its spatial linkages: 1988–2007," Energy Policy, Elsevier, vol. 45(C), pages 583-593.
    11. Inglesi-Lotz, Roula, 2016. "The impact of renewable energy consumption to economic growth: A panel data application," Energy Economics, Elsevier, vol. 53(C), pages 58-63.
    12. Franki, Vladimir & Višković, Alfredo, 2015. "Energy security, policy and technology in South East Europe: Presenting and applying an energy security index to Croatia," Energy, Elsevier, vol. 90(P1), pages 494-507.
    13. Robert W. Gilmer & Emily Kerr, 2010. "Natural gas from shale: Texas revolution goes global," Southwest Economy, Federal Reserve Bank of Dallas, issue Q3, pages 10-13.
    14. Iddrisu, Insah & Bhattacharyya, Subhes C., 2015. "Sustainable Energy Development Index: A multi-dimensional indicator for measuring sustainable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 513-530.
    15. Narula, Kapil & Reddy, B. Sudhakara, 2016. "A SES (sustainable energy security) index for developing countries," Energy, Elsevier, vol. 94(C), pages 326-343.
    16. Khayatian, Fazel & Sarto, Luca & Dall'O', Giuliano, 2017. "Building energy retrofit index for policy making and decision support at regional and national scales," Applied Energy, Elsevier, vol. 206(C), pages 1062-1075.
    17. Abu Bakar, Nur Najihah & Hassan, Mohammad Yusri & Abdullah, Hayati & Rahman, Hasimah Abdul & Abdullah, Md Pauzi & Hussin, Faridah & Bandi, Masilah, 2015. "Energy efficiency index as an indicator for measuring building energy performance: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 44(C), pages 1-11.
    18. Gale A. Boyd and Joseph M. Roop, 2004. "A Note on the Fisher Ideal Index Decomposition for Structural Change in Energy Intensity," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 87-102.
    19. Bhattacharya, Mita & Paramati, Sudharshan Reddy & Ozturk, Ilhan & Bhattacharya, Sankar, 2016. "The effect of renewable energy consumption on economic growth: Evidence from top 38 countries," Applied Energy, Elsevier, vol. 162(C), pages 733-741.
    20. Fare, Rolf & Grosskopf, Shawna, 1992. "Malmquist Productivity Indexes and Fisher Ideal Indexes," Economic Journal, Royal Economic Society, vol. 102(410), pages 158-160, January.
    21. Erahman, Qodri Febrilian & Purwanto, Widodo Wahyu & Sudibandriyo, Mahmud & Hidayatno, Akhmad, 2016. "An assessment of Indonesia's energy security index and comparison with seventy countries," Energy, Elsevier, vol. 111(C), pages 364-376.
    22. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris, 2020. "Stochastic convergence in per capita CO2 emissions: Evidence from emerging economies, 1921–2014," Energy Economics, Elsevier, vol. 86(C).
    23. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhao, Jiqiang & Wu, Xianhua & Guo, Ji & Gao, Chao, 2022. "Allocation of SO2 emission rights in city agglomerations considering cross-border transmission of pollutants: A new network DEA model," Applied Energy, Elsevier, vol. 325(C).
    2. Xufeng Zhang & Yanliang Liu & Akmaral Tleubergenova & Jin-Song Liu & Ru Fan & Yun-En Tang & Xiang-Zhou Meng, 2022. "Evaluation of Urban Sustainability Based on Development Structures and Economic Aggregates: A Case Study of Jiaxing, China," Sustainability, MDPI, vol. 14(17), pages 1-16, August.
    3. Chen, Feng & Wu, Bin & Lou, Wenqian, 2021. "An evolutionary analysis on the effect of government policies on green R & D of photovoltaic industry diffusion in complex network," Energy Policy, Elsevier, vol. 152(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pin Li & Jinsuo Zhang, 2019. "Is China’s Energy Supply Sustainable? New Research Model Based on the Exponential Smoothing and GM(1,1) Methods," Energies, MDPI, vol. 12(2), pages 1-30, January.
    2. Gasser, Patrick, 2020. "A review on energy security indices to compare country performances," Energy Policy, Elsevier, vol. 139(C).
    3. Tomasz Rokicki & Aleksandra Perkowska, 2021. "Diversity and Changes in the Energy Balance in EU Countries," Energies, MDPI, vol. 14(4), pages 1-19, February.
    4. Sueyoshi, Toshiyuki & Mo, Fei & Wang, Derek D., 2022. "Sustainable development of countries all over the world and the impact of renewable energy," Renewable Energy, Elsevier, vol. 184(C), pages 320-331.
    5. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    6. Jimenez, Raul & Mercado, Jorge, 2014. "Energy intensity: A decomposition and counterfactual exercise for Latin American countries," Energy Economics, Elsevier, vol. 42(C), pages 161-171.
    7. Hoang, Thi Hong Van & Shahzad, Syed Jawad Hussain & Czudaj, Robert L., 2020. "Renewable energy consumption and industrial production: A disaggregated time-frequency analysis for the U.S," Energy Economics, Elsevier, vol. 85(C).
    8. Abdullah, Fahad Bin & Iqbal, Rizwan & Hyder, Syed Irfan & Jawaid, Mohammad, 2020. "Energy security indicators for Pakistan: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    9. Le, Thai-Ha & Nguyen, Canh Phuc, 2019. "Is energy security a driver for economic growth? Evidence from a global sample," Energy Policy, Elsevier, vol. 129(C), pages 436-451.
    10. Destek, Mehmet Akif & Aslan, Alper, 2020. "Disaggregated renewable energy consumption and environmental pollution nexus in G-7 countries," Renewable Energy, Elsevier, vol. 151(C), pages 1298-1306.
    11. Iztok Podbregar & Goran Šimić & Mirjana Radovanović & Sanja Filipović & Damjan Maletič & Polona Šprajc, 2020. "The International Energy Security Risk Index in Sustainable Energy and Economy Transition Decision Making—A Reliability Analysis," Energies, MDPI, vol. 13(14), pages 1-16, July.
    12. Ye, Ruike & Zhou, Yunheng & Chen, Jiawei & Tu, Kevin, 2021. "Natural gas security evaluation from a supply vs. demand perspective: A quantitative application of four As," Energy Policy, Elsevier, vol. 156(C).
    13. Aslan, Alper & Ocal, Oguz & Ozsolak, Baki & Ozturk, Ilhan, 2022. "Renewable energy and economic growth relationship under the oil reserve ownership: Evidence from panel VAR approach," Renewable Energy, Elsevier, vol. 188(C), pages 402-410.
    14. Abdelrahman Azzuni & Arman Aghahosseini & Manish Ram & Dmitrii Bogdanov & Upeksha Caldera & Christian Breyer, 2020. "Energy Security Analysis for a 100% Renewable Energy Transition in Jordan by 2050," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    15. Osieczko Kornelia & Polaszczyk Jan, 2018. "Comparison of chosen aspects of Energy Security Index for the natural gas sector in Poland and Ukraine," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 54(3), pages 185-196, September.
    16. Zhang, Long & Bai, Wuliyasu & Xiao, Huijuan & Ren, Jingzheng, 2021. "Measuring and improving regional energy security: A methodological framework based on both quantitative and qualitative analysis," Energy, Elsevier, vol. 227(C).
    17. Díaz, Antonia & Marrero, Gustavo A. & Puch, Luis A. & Rodríguez, Jesús, 2019. "Economic growth, energy intensity and the energy mix," Energy Economics, Elsevier, vol. 81(C), pages 1056-1077.
    18. Boateng, Godfred O. & Balogun, Mobolanle R. & Dada, Festus O. & Armah, Frederick A., 2020. "Household energy insecurity: dimensions and consequences for women, infants and children in low- and middle-income countries," Social Science & Medicine, Elsevier, vol. 258(C).
    19. Gao, Dan & Li, Zheng & Liu, Pei & Zhao, Jiazhu & Zhang, Yuning & Li, Canbing, 2018. "A coordinated energy security model taking strategic petroleum reserve and alternative fuels into consideration," Energy, Elsevier, vol. 145(C), pages 171-181.
    20. Shahbaz, Muhammad & Hoang, Thi Hong Van & Mahalik, Mantu Kumar & Roubaud, David, 2017. "Energy consumption, financial development and economic growth in India: New evidence from a nonlinear and asymmetric analysis," Energy Economics, Elsevier, vol. 63(C), pages 199-212.

    More about this item

    Keywords

    Energy system; Energy index; Harmonic average; Energy statistics;
    All these keywords.

    JEL classification:

    • C69 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Other
    • E01 - Macroeconomics and Monetary Economics - - General - - - Measurement and Data on National Income and Product Accounts and Wealth; Environmental Accounts
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:90:y:2020:i:c:s0140988320302152. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.