Properties and linkages of some index decomposition analysis methods
AbstractWe study the properties and linkages of some popular index decomposition analysis (IDA) methods in energy and carbon emission analyses. Specifically, we introduce a simple relationship between the arithmetic mean Divisia index (AMDI) method and the logarithmic mean Divisia index method I (LMDI I), and show that such a relationship can be extended to cover most IDA methods linked to the Divisia index. We also formalize the relationship between the Laspeyres index method and the Shapley value in the IDA context. Similarly, such a relationship can be extended to cover other IDA methods linked to the Laspeyres index through defining the characteristic function in the Shapley value. It is found that these properties and linkages apply to decomposition of changes conducted additively. Similar properties and linkages cannot be established in the multiplicative case. The implications of the findings on IDA studies are discussed.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 37 (2009)
Issue (Month): 11 (November)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Index decomposition analysis LMDI Shapley value;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Park, Se-Hark, 1992. "Decomposition of industrial energy consumption : An alternative method," Energy Economics, Elsevier, vol. 14(4), pages 265-270, October.
- Claire P. Doblin, 1988. "Declining Energy Intensity in the U.S. Manufacturing Sector," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 109-135.
- X. Q. Liu & B. W. Ang & H.L. Ong, 1992. "The Application of the Divisia Index to the Decomposition of Changes in Industrial Energy Consumption," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 161-178.
- Sun, J. W., 1998. "Changes in energy consumption and energy intensity: A complete decomposition model," Energy Economics, Elsevier, vol. 20(1), pages 85-100, February.
- Hulten, Charles R, 1973. "Divisia Index Numbers," Econometrica, Econometric Society, vol. 41(6), pages 1017-25, November.
- Sun, J.W & Ang, B.W, 2000. "Some properties of an exact energy decomposition model," Energy, Elsevier, vol. 25(12), pages 1177-1188.
- Ang, B.W & Zhang, F.Q & Choi, Ki-Hong, 1998. "Factorizing changes in energy and environmental indicators through decomposition," Energy, Elsevier, vol. 23(6), pages 489-495.
- Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
- Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
- Ang, B.W. & Liu, Na, 2007. "Handling zero values in the logarithmic mean Divisia index decomposition approach," Energy Policy, Elsevier, vol. 35(1), pages 238-246, January.
- B. W. Ang & Ki-Hong Choi, 1997. "Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-73.
- Reitler, W. & Rudolph, M. & Schaefer, H., 1987. "Analysis of the factors influencing energy consumption in industry : A revised method," Energy Economics, Elsevier, vol. 9(3), pages 145-148, July.
- Ang, B. W. & Liu, F. L. & Chew, E. P., 2003. "Perfect decomposition techniques in energy and environmental analysis," Energy Policy, Elsevier, vol. 31(14), pages 1561-1566, November.
- Ang, B.W. & Liu, F.L. & Chung, Hyun-Sik, 2004. "A generalized Fisher index approach to energy decomposition analysis," Energy Economics, Elsevier, vol. 26(5), pages 757-763, September.
- Bossanyi, Ervin, 1979. "UK primary energy consumption and the changing structure of final demand," Energy Policy, Elsevier, vol. 7(3), pages 253-258, September.
- Hankinson, G. A. & Rhys, J. M. W., 1983. "Electricity consumption, electricity intensity and industrial structure," Energy Economics, Elsevier, vol. 5(3), pages 146-152, July.
- Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
- Boyd, Gale A. & Hanson, Donald A. & Sterner, Thomas, 1988. "Decomposition of changes in energy intensity : A comparison of the Divisia index and other methods," Energy Economics, Elsevier, vol. 10(4), pages 309-312, October.
- de Boer, Paul, 2009. "Generalized Fisher index or Siegel-Shapley decomposition?," Energy Economics, Elsevier, vol. 31(5), pages 810-814, September.
- Albrecht, Johan & Francois, Delphine & Schoors, Koen, 2002. "A Shapley decomposition of carbon emissions without residuals," Energy Policy, Elsevier, vol. 30(9), pages 727-736, July.
- Sorrell, Steve & Lehtonen, Markku & Stapleton, Lee & Pujol, Javier & Champion, Toby, 2009. "Decomposing road freight energy use in the United Kingdom," Energy Policy, Elsevier, vol. 37(8), pages 3115-3129, August.
- Ang, B. W. & Lee, S. Y., 1994. "Decomposition of industrial energy consumption : Some methodological and application issues," Energy Economics, Elsevier, vol. 16(2), pages 83-92, April.
- Ang, B.W. & Mu, A.R. & Zhou, P., 2010. "Accounting frameworks for tracking energy efficiency trends," Energy Economics, Elsevier, vol. 32(5), pages 1209-1219, September.
- Åsa Löfgren & Adrian Muller, 2010. "Swedish CO 2 Emissions 1993–2006: An Application of Decomposition Analysis and Some Methodological Insights," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 47(2), pages 221-239, October.
- 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.
- Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, vol. 93(C), pages 313-329.
- Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014.
"Energy intensity developments in 40 major economies: Structural change or technology improvement?,"
Elsevier, vol. 41(C), pages 47-62.
- De Cian, Enrica & Schymura, Michael & Verdolini, Elena & Voigt, Sebastian, 2013. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," ZEW Discussion Papers 13-052, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Enrica De Cian & Michael Schymura & Elena Verdolini & Sebastian Voigt, 2013. "Energy Intensity Developments in 40 Major Economies: Structural Change or Technology Improvement?," Working Papers 2013.38, Fondazione Eni Enrico Mattei.
- Baležentis, Alvydas & Baležentis, Tomas & Streimikiene, Dalia, 2011. "The energy intensity in Lithuania during 1995–2009: A LMDI approach," Energy Policy, Elsevier, vol. 39(11), pages 7322-7334.
- Hwang, In Chang, 2013. "Stochastic Kaya model and its applications," MPRA Paper 55099, University Library of Munich, Germany.
- Ma, Chunbo, 2014. "A multi-fuel, multi-sector and multi-region approach to index decomposition: An application to China's energy consumption 1995–2010," Energy Economics, Elsevier, vol. 42(C), pages 9-16.
- Li, Fangyi & Song, Zhouying & Liu, Weidong, 2014. "China's energy consumption under the global economic crisis: Decomposition and sectoral analysis," Energy Policy, Elsevier, vol. 64(C), pages 193-202.
- Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
- Hwang, In Chang, 2013. "Anthropogenic drivers of carbon emissions: scale and counteracting effects," MPRA Paper 52224, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.