Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using Logarithmic Mean Divisia approach
AbstractThis paper provides an empirical estimation of energy efficiency and other proximate factors that explain energy intensity in Australia for the period 1978-2009. The analysis is performed by decomposing the changes in energy intensity by means of energy efficiency, fuel mix and structural changes both at sectoral and sub-sectoral levels of the economy. Results show that the driving forces behind the decrease in energy intensity in Australia are efficiency effect and sectoral composition effect, where the former is found to be more prominent than the latter. Moreover, the favourable impact of the composition effect has been consistently slowed down in the recent past. A perfect positive association characterizes the relationship between energy intensity and carbon intensity in Australia. Given the trends in decomposition factors, it is necessary to boost energy efficiency further to reduce Australia’s overall contribution to energy intensity and carbon emissions in the future.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36250.
Date of creation: Jan 2012
Date of revision:
Energy intensity; Energy efficiency; Index decomposition analysis;
Find related papers by JEL classification:
- O56 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - Oceania
- Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-ENE-2012-02-20 (Energy Economics)
- NEP-ENV-2012-02-20 (Environmental Economics)
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