IDEAS home Printed from https://ideas.repec.org/p/zbw/tuweco/082016.html
   My bibliography  Save this paper

A structural decomposition analysis of global and national energy intensity trends

Author

Listed:
  • Croner, Daniel
  • Frankovic, Ivan

Abstract

This paper analyses recent energy intensity trends of 40 major economies. Our main focus lies on the question whether improvements in energy efficiency were due to structural change towards a greener economy or a consequence of technological improvements. We account for intersectoral trade by using the World Input-Output database and adjust sector-specific energy use via the environmentally extended input-output analysis. We find strongdifferences between adjusted and unadjusted energy consumption across sectors, particularly in the construction and electricity industry. Using the three factor Logarithmic Mean Divisia Index method, our decomposition analysis shows that recent energy intensity reductions were mostly driven by technological advances. Structural changes within countries played only a minor role, whereas international trade by itself even increased global energy intensity. Compared to a previous study that used unadjusted sectoral energy data, we find structural effects on energy intensity reductions to be systematically weaker under adjusted data. The differences are particularly striking on a country-level, e.g. for Japan and Turkey.

Suggested Citation

  • Croner, Daniel & Frankovic, Ivan, 2016. "A structural decomposition analysis of global and national energy intensity trends," ECON WPS - Working Papers in Economic Theory and Policy 08/2016, TU Wien, Institute of Statistics and Mathematical Methods in Economics, Economics Research Unit.
    • Handle: RePEc:zbw:tuweco:082016
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/147448/1/871630648.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Barry Eichengreen & Poonam Gupta, 2013. "The two waves of service-sector growth," Oxford Economic Papers, Oxford University Press, vol. 65(1), pages 96-123, January.
    2. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-166, February.
    3. 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.
    4. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    5. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969, December.
    6. Ayres, Robert U. & van den Bergh, Jeroen C.J.M. & Lindenberger, Dietmar & Warr, Benjamin, 2013. "The underestimated contribution of energy to economic growth," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 79-88.
    7. Bin Su & B. W. Ang, 2012. "Structural Decomposition Analysis Applied To Energy And Emissions: Aggregation Issues," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 299-317, March.
    8. Babiker, Mustafa H., 2005. "Climate change policy, market structure, and carbon leakage," Journal of International Economics, Elsevier, vol. 65(2), pages 421-445, March.
    9. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521517133.
    10. 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.
    11. Miller,Ronald E. & Blair,Peter D., 2009. "Input-Output Analysis," Cambridge Books, Cambridge University Press, number 9780521739023.
    12. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    13. Oecd, 2013. "What Have We Learned from Attempts to Introduce Green-Growth Policies?," OECD Green Growth Papers 2013/2, OECD Publishing.
    14. Wachsmann, Ulrike & Wood, Richard & Lenzen, Manfred & Schaeffer, Roberto, 2009. "Structural decomposition of energy use in Brazil from 1970 to 1996," Applied Energy, Elsevier, vol. 86(4), pages 578-587, April.
    15. Michael Jakob & Robert Marschinski, 2013. "Interpreting trade-related CO2 emission transfers," Nature Climate Change, Nature, vol. 3(1), pages 19-23, January.
    16. Francisco J. Buera & Joseph P. Kaboski, 2012. "The Rise of the Service Economy," American Economic Review, American Economic Association, vol. 102(6), pages 2540-2569, October.
    17. Erik Dietzenbacher & Bart Los & Robert Stehrer & Marcel Timmer & Gaaitzen de Vries, 2013. "The Construction Of World Input-Output Tables In The Wiod Project," Economic Systems Research, Taylor & Francis Journals, vol. 25(1), pages 71-98, March.
    18. 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.
    19. Ang, B.W. & Liu, F.L., 2001. "A new energy decomposition method: perfect in decomposition and consistent in aggregation," Energy, Elsevier, vol. 26(6), pages 537-548.
    20. Wood, Richard, 2009. "Structural decomposition analysis of Australia's greenhouse gas emissions," Energy Policy, Elsevier, vol. 37(11), pages 4943-4948, November.
    21. Marcel P. Timmer & Abdul Azeez Erumban & Bart Los & Robert Stehrer & Gaaitzen J. de Vries, 2014. "Slicing Up Global Value Chains," Journal of Economic Perspectives, American Economic Association, vol. 28(2), pages 99-118, Spring.
    22. Ang, B.W. & Liu, Na, 2007. "Energy decomposition analysis: IEA model versus other methods," Energy Policy, Elsevier, vol. 35(3), pages 1426-1432, March.
    23. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    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. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).
    2. Croner, Daniel & Koller, Wolfgang & Mahlberg, Bernhard, 2018. "Economic drivers of greenhouse gas-emissions in small open economies: A hierarchical structural decomposition analysis," MPRA Paper 85755, University Library of Munich, Germany.
    3. Su, Bin & Ang, B.W. & Li, Yingzhu, 2019. "Structural path and decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 83(C), pages 345-360.
    4. Wang, Hui & Li, Rupeng & Zhang, Ning & Zhou, Peng & Wang, Qiang, 2020. "Assessing the role of technology in global manufacturing energy intensity change: A production-theoretical decomposition analysis," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    5. Guevara, Zeus & Domingos, Tiago, 2017. "Three-level decoupling of energy use in Portugal 1995–2010," Energy Policy, Elsevier, vol. 108(C), pages 134-142.
    6. Hannesson, Rögnvaldur, 2018. "CO2 intensity and GDP per capita," Discussion Papers 2018/16, Norwegian School of Economics, Department of Business and Management Science.
    7. Ninpanit, Panittra & Malik, Arunima & Wakiyama, Takako & Geschke, Arne & Lenzen, Manfred, 2019. "Thailand’s energy-related carbon dioxide emissions from production-based and consumption-based perspectives," Energy Policy, Elsevier, vol. 133(C).
    8. Wang, Jianda & Dong, Kangyin & Hochman, Gal & Timilsina, Govinda R., 2023. "Factors driving aggregate service sector energy intensities in Asia and Eastern Europe: A LMDI analysis," Energy Policy, Elsevier, vol. 172(C).
    9. Xiuqin Zhang & Xudong Shi & Yasir Khan & Majid Khan & Saba Naz & Taimoor Hassan & Chenchen Wu & Tahir Rahman, 2023. "The Impact of Energy Intensity, Energy Productivity and Natural Resource Rents on Carbon Emissions in Morocco," Sustainability, MDPI, vol. 15(8), pages 1-22, April.
    10. Lin, Boqiang & Wang, Miao, 2021. "What drives energy intensity fall in China? Evidence from a meta-frontier approach," Applied Energy, Elsevier, vol. 281(C).
    11. Guevara, Zeus & Henriques, SofiaTeives & Sousa, Tânia, 2021. "Driving factors of differences in primary energy intensities of 14 European countries," Energy Policy, Elsevier, vol. 149(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. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    2. Schymura, Michael & Voigt, Sebastian, 2014. "What drives changes in carbon emissions? An index decomposition approach for 40 countries," ZEW Discussion Papers 14-038, ZEW - Leibniz Centre for European Economic Research.
    3. Román-Collado, Rocío & Cansino, José M. & Botia, Camilo, 2018. "How far is Colombia from decoupling? Two-level decomposition analysis of energy consumption changes," Energy, Elsevier, vol. 148(C), pages 687-700.
    4. Lan, Jun & Malik, Arunima & Lenzen, Manfred & McBain, Darian & Kanemoto, Keiichiro, 2016. "A structural decomposition analysis of global energy footprints," Applied Energy, Elsevier, vol. 163(C), pages 436-451.
    5. Ninpanit, Panittra & Malik, Arunima & Wakiyama, Takako & Geschke, Arne & Lenzen, Manfred, 2019. "Thailand’s energy-related carbon dioxide emissions from production-based and consumption-based perspectives," Energy Policy, Elsevier, vol. 133(C).
    6. Cansino, José M. & Sánchez-Braza, Antonio & Rodríguez-Arévalo, María L., 2015. "Driving forces of Spain׳s CO2 emissions: A LMDI decomposition approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 48(C), pages 749-759.
    7. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    8. Kaltenegger, Oliver & Löschel, Andreas & Pothen, Frank, 2017. "The effect of globalisation on energy footprints: Disentangling the links of global value chains," Energy Economics, Elsevier, vol. 68(S1), pages 148-168.
    9. 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.
    10. Cansino, José M. & Sánchez-Braza, Antonio & Rodríguez-Arévalo, María L., 2018. "How can Chile move away from a high carbon economy?," Energy Economics, Elsevier, vol. 69(C), pages 350-366.
    11. Román, Rocío & Cansino, José M. & Rodas, José A., 2018. "Analysis of the main drivers of CO2 emissions changes in Colombia (1990–2012) and its political implications," Renewable Energy, Elsevier, vol. 116(PA), pages 402-411.
    12. Yan, Junna & Su, Bin, 2020. "What drive the changes in China's energy consumption and intensity during 12th Five-Year Plan period?," Energy Policy, Elsevier, vol. 140(C).
    13. Cansino, José M. & Román, Rocío & Ordóñez, Manuel, 2016. "Main drivers of changes in CO2 emissions in the Spanish economy: A structural decomposition analysis," Energy Policy, Elsevier, vol. 89(C), pages 150-159.
    14. He, He & Reynolds, Christian John & Li, Linyang & Boland, John, 2019. "Assessing net energy consumption of Australian economy from 2004–05 to 2014–15: Environmentally-extended input-output analysis, structural decomposition analysis, and linkage analysis," Applied Energy, Elsevier, vol. 240(C), pages 766-777.
    15. Nagashima, Fumiya, 2018. "The sign reversal problem in structural decomposition analysis," Energy Economics, Elsevier, vol. 72(C), pages 307-312.
    16. Li, Tianxiang & Baležentis, Tomas & Makutėnienė, Daiva & Streimikiene, Dalia & Kriščiukaitienė, Irena, 2016. "Energy-related CO2 emission in European Union agriculture: Driving forces and possibilities for reduction," Applied Energy, Elsevier, vol. 180(C), pages 682-694.
    17. Wang, Miao & Feng, Chao, 2017. "Analysis of energy-related CO2 emissions in China’s mining industry: Evidence and policy implications," Resources Policy, Elsevier, vol. 53(C), pages 77-87.
    18. Lach, Łukasz, 2022. "Optimization based structural decomposition analysis as a tool for supporting environmental policymaking," Energy Economics, Elsevier, vol. 115(C).
    19. Hu, Yi & Yin, Zhifeng & Ma, Jian & Du, Wencui & Liu, Danhe & Sun, Luxi, 2017. "Determinants of GHG emissions for a municipal economy: Structural decomposition analysis of Chongqing," Applied Energy, Elsevier, vol. 196(C), pages 162-169.
    20. Fernández-Amador, Octavio & Francois, Joseph F. & Oberdabernig, Doris A. & Tomberger, Patrick, 2023. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Ecological Economics, Elsevier, vol. 204(PA).

    More about this item

    JEL classification:

    • F0 - International Economics - - General

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:zbw:tuweco:082016. 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/imtuwat.html .

    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.