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A Structural Decomposition Analysis of Global and National Energy Intensity Trends

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  • Daniel Croner and Ivan Frankovic

Abstract

This paper analyses recent energy intensity trends for 40 major economies using a structural decomposition analysis. Our focus lies on the question whether improvements in energy intensity were caused by structural change towards a greener economy or by technological improvements. We account for intersectoral trade by using the World Input-Output database and adjust sectoral energy use via the environmentally extended input-output analysis. We find strong differences between consumption and production-based 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 only using production-based sectoral energy data, we find structural effects on energy intensity reductions to be systematically weaker under consumption-based data.

Suggested Citation

  • Daniel Croner and Ivan Frankovic, 2018. "A Structural Decomposition Analysis of Global and National Energy Intensity Trends," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
  • Handle: RePEc:aen:journl:ej39-2-croner
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    Cited by:

    1. 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.
    2. 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).
    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. Hannesson, Rögnvaldur, 2018. "CO2 intensity and GDP per capita," Discussion Papers 2018/16, Norwegian School of Economics, Department of Business and Management Science.

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    JEL classification:

    • F0 - International Economics - - General

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