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Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002

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  • Weber, Christopher L.
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    Abstract

    The steadily increasing focus on energy production and consumption has led to growing research attention to patterns of energy use within economies. Of particular interest has been comparing the driving forces of increasing efficiency and economic structural change. Input-output analysis (IOA) and decomposition analysis have become critical tools for performing such analyses. This study analyzes aggregate energy use in the United States in 1997 and 2002 to discover the causes of changing energy usage and flows. Results show that rising population and household consumption acted to drive up energy demand, but this driving force was offset by considerable structural change within the economy, particularly related to a quickly increasing trade deficit in manufacturing goods. Thus, while total energy intensity, the ratio of energy use to economic output, declined by approximately 12% between 1997 and 2002, changes in the structure of the economy explain this drop more than increased energy efficiency. The level of aggregation at which decomposition analyses are run was identified as a crucially sensitive parameter for the determination of structural change, and future studies should specifically address the amount of detail necessary to adequately measure changes in economic structure.

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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 4 (April)
    Pages: 1561-1570

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:4:p:1561-1570

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    Web page: http://www.elsevier.com/locate/enpol

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    Keywords: Structural decomposition analysis Index decomposition analysis Structural change;

    References

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    Citations

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    Cited by:
    1. Liu, Hongtao & Xi, Youmin & Guo, Ju'e & Li, Xia, 2010. "Energy embodied in the international trade of China: An energy input-output analysis," Energy Policy, Elsevier, vol. 38(8), pages 3957-3964, August.
    2. Andersson, Fredrik N.G. & Karpestam, Peter, 2013. "CO2 emissions and economic activity: Short- and long-run economic determinants of scale, energy intensity and carbon intensity," Energy Policy, Elsevier, vol. 61(C), pages 1285-1294.
    3. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    4. Chai, Jian & Guo, Ju-E & Wang, Shou-Yang & Lai, Kin Keung, 2009. "Why does energy intensity fluctuate in China?," Energy Policy, Elsevier, vol. 37(12), pages 5717-5731, December.
    5. Choi, Ki-Hong & Ang, B.W., 2012. "Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis," Energy Economics, Elsevier, vol. 34(1), pages 171-176.
    6. Coccia, Mario, 2010. "Energy metrics for driving competitiveness of countries: Energy weakness magnitude, GDP per barrel and barrels per capita," Energy Policy, Elsevier, vol. 38(3), pages 1330-1339, March.
    7. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2013. "The role of consumption patterns, demand and technological factors on the recent evolution of CO2 emissions in a group of advanced economies," Ecological Economics, Elsevier, vol. 96(C), pages 1-13.
    8. Du, Huibin & Guo, Jianghong & Mao, Guozhu & Smith, Alexander M. & Wang, Xuxu & Wang, Yuan, 2011. "CO2 emissions embodied in China-US trade: Input-output analysis based on the emergy/dollar ratio," Energy Policy, Elsevier, vol. 39(10), pages 5980-5987, October.
    9. Wiedmann, Thomas & Wilting, Harry C. & Lenzen, Manfred & Lutter, Stephan & Palm, Viveka, 2011. "Quo Vadis MRIO? Methodological, data and institutional requirements for multi-region input-output analysis," Ecological Economics, Elsevier, vol. 70(11), pages 1937-1945, September.
    10. 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.
    11. Pedregal, D.J. & Dejuán, O. & Gómez, N. & Tobarra, M.A., 2009. "Modelling demand for crude oil products in Spain," Energy Policy, Elsevier, vol. 37(11), pages 4417-4427, November.
    12. 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.

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