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Eight methods for decomposing the aggregate energy-intensity of industry

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  • Liu, F. L.
  • Ang, B. W.

Abstract

Since the early 1980s, the decomposition technique has been widely used in industrial energy analysis and for energy-policy evaluation. We describe eight different methods for decomposing the aggregate energy intensity of industry into the impacts associated with changes in industrial production structure and sectoral energy intensity. These eight methods, derived from economic index numbers, include two methods that are often used by researchers and three methods that are proposed for the first time. We show the linkages between index numbers and decomposition methods, which would assist analysts in method selection when undertaking decomposition studies. A simple example is presented to illustrate the characteristics of the eight methods.

Suggested Citation

  • Liu, F. L. & Ang, B. W., 2003. "Eight methods for decomposing the aggregate energy-intensity of industry," Applied Energy, Elsevier, vol. 76(1-3), pages 15-23, September.
  • Handle: RePEc:eee:appene:v:76:y:2003:i:1-3:p:15-23
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    References listed on IDEAS

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    1. Park, Se-Hark, 1992. "Decomposition of industrial energy consumption : An alternative method," Energy Economics, Elsevier, vol. 14(4), pages 265-270, October.
    2. Huntington, Hillard G., 1989. "The impact of sectoral shifts in industry on U.S. energy demands," Energy, Elsevier, vol. 14(6), pages 363-372.
    3. Ang, B.W., 1995. "Decomposition methodology in industrial energy demand analysis," Energy, Elsevier, vol. 20(11), pages 1081-1095.
    4. 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.
    5. Reitler, W. & Rudolph, M. & Schaefer, H., 1987. "Analysis of the factors influencing energy consumption in industry : A revised method," Energy Economics, Elsevier, vol. 9(3), pages 145-148, July.
    6. Richard B. Howarth & Lee Schipper, 1991. "Manufacturing Energy Use in Eight OECD Countries: Trends through 1988," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 15-40.
    7. Sato, Kazuo, 1976. "The Ideal Log-Change Index Number," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 223-228, May.
    8. Claire P. Doblin, 1988. "Declining Energy Intensity in the U.S. Manufacturing Sector," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 109-135.
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