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Sector disaggregation and the effect of structural change on industrial energy consumption

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  • Ang, B.W.
  • Liu, X.Q.
  • Ong, H.L.

Abstract

We examine how the level of sector disaggregation, and the way industrial sectors are aggregated, influence the estimate of the effect of structural change on the growth of industrial energy consumption. If these influences are great, it would be misleading to use the results obtained for a specific level of sector disaggregation to explain, in general terms, changes in industrial energy consumption over time. We show that it is a misconception to suggest that the higher the level of sector disaggregation, the larger will be the changes in industrial energy consumption that can be attributed to structural change. We present a procedure for examining how grouping of sectors to form a higher level of sector aggregation affects the estimate of the structural effect and for identifying the source of variations. The application of this procedure is illustrated using the electricity consumption data of Singapore industry.

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  • Ang, B.W. & Liu, X.Q. & Ong, H.L., 1992. "Sector disaggregation and the effect of structural change on industrial energy consumption," Energy, Elsevier, vol. 17(7), pages 679-687.
    • Handle: RePEc:eee:energy:v:17:y:1992:i:7:p:679-687
    DOI: 10.1016/0360-5442(92)90075-B
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    Citations

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    Cited by:

    1. Nässén, Jonas, 2014. "Determinants of greenhouse gas emissions from Swedish private consumption: Time-series and cross-sectional analyses," Energy, Elsevier, vol. 66(C), pages 98-106.
    2. B.W. Ang & J.F. Skea, 1994. "Structural Change, Sector Disaggregation and Electricity Consumption in uk Industry," Energy & Environment, , vol. 5(1), pages 1-16, March.
    3. Shrestha, Ram M. & Timilsina, Govinda R., 1996. "Factors affecting CO2 intensities of power sector in Asia: A Divisia decomposition analysis," Energy Economics, Elsevier, vol. 18(4), pages 283-293, October.
    4. Sally Salamah & Wan Abbas Zakaria & Toto Gunarto & Lies Maria Hamzah & Muhammad Said, 2019. "Analysis of Energy Intensity Decomposition in the Textile Industrial Sub Sector of Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 1-10.
    5. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    6. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    7. Ang, B. W., 1995. "Multilevel decomposition of industrial energy consumption," Energy Economics, Elsevier, vol. 17(1), pages 39-51, January.
    8. 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.

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