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Decomposition analysis and the mean-rate-of-change index

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  • Lenzen, Manfred

Abstract

The mean-rate-of-change index (MRCI) is a recent addition to the suite of decomposition analysis (DA) methods. In addition to the arithmetic mean used by its originators, the MRCI can be formulated incorporating any type of mean. When the logarithmic mean is used, the MRCI is equivalent to the logarithmic mean Divisia index. The MRCI is said to produce plausible decompositions, and to be able to handle negative values. However, regarding the sign and magnitude of decomposition terms, the MRCI is affected by the same distortions and inconsistencies as other DA methods, and generally does not produce more plausible results. Moreover, the MRCI's ability to handle negative values is not necessarily an advantage in DA studies using input-output data. Finally, the MRCI is not robust.

Suggested Citation

  • Lenzen, Manfred, 2006. "Decomposition analysis and the mean-rate-of-change index," Applied Energy, Elsevier, pages 185-198.
  • Handle: RePEc:eee:appene:v:83:y:2006:i:3:p:185-198
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    Cited by:

    1. 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.
    2. Achão, Carla & Schaeffer, Roberto, 2009. "Decomposition analysis of the variations in residential electricity consumption in Brazil for the 1980-2007 period: Measuring the activity, intensity and structure effects," Energy Policy, Elsevier, vol. 37(12), pages 5208-5220, December.
    3. Jong In Kim & Gukbin Kim, 2016. "Country-Level Socioeconomic Indicators Associated with Healthy Life Expectancy: Income, Urbanization, Schooling, and Internet Users: 2000–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 129(1), pages 391-402, October.
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    5. Ang, B.W. & Liu, Na, 2007. "Negative-value problems of the logarithmic mean Divisia index decomposition approach," Energy Policy, Elsevier, vol. 35(1), pages 739-742, January.
    6. Timma, Lelde & Zoss, Toms & Blumberga, Dagnija, 2016. "Life after the financial crisis. Energy intensity and energy use decomposition on sectorial level in Latvia," Applied Energy, Elsevier, vol. 162(C), pages 1586-1592.
    7. Cahill, Caiman J. & Ó Gallachóir, Brian P., 2010. "Monitoring energy efficiency trends in European industry: Which top-down method should be used?," Energy Policy, Elsevier, vol. 38(11), pages 6910-6918, November.
    8. Malla, Sunil, 2009. "CO2 emissions from electricity generation in seven Asia-Pacific and North American countries: A decomposition analysis," Energy Policy, Elsevier, vol. 37(1), pages 1-9, January.
    9. Wachsmann, Ulrike & Wood, Richard & Lenzen, Manfred & Schaeffer, Roberto, 2009. "Structural decomposition of energy use in Brazil from 1970 to 1996," Applied Energy, Elsevier, pages 578-587.
    10. Wang, Qiang & Li, Rongrong, 2016. "Journey to burning half of global coal: Trajectory and drivers of China׳s coal use," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 341-346.
    11. Andrés, Lidia & Padilla, Emilio, 2015. "Energy intensity in road freight transport of heavy goods vehicles in Spain," Energy Policy, Elsevier, vol. 85(C), pages 309-321.
    12. Kahrl, Fredrich & Roland-Holst, David & Zilberman, David, 2013. "Past as Prologue? Understanding energy use in post-2002 China," Energy Economics, Elsevier, vol. 36(C), pages 759-771.
    13. 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.
    14. Vaninsky, Alexander, 2014. "Factorial decomposition of CO2 emissions: A generalized Divisia index approach," Energy Economics, Elsevier, vol. 45(C), pages 389-400.
    15. AkbostancI, Elif & Tunç, Gül Ipek & Türüt-AsIk, Serap, 2011. "CO2 emissions of Turkish manufacturing industry: A decomposition analysis," Applied Energy, Elsevier, pages 2273-2278.

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