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Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis

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  • Choi, Ki-Hong
  • Ang, B.W.

Abstract

In this paper we extend the methodology of index decomposition analysis (IDA) in energy studies by quantifying the contribution of individual attributes to the percent change of factors such as the real energy intensity index and structural change index. We apply the proposed method to the real energy intensity index in the multiplicative Logarithmic Mean Divisia Index (M-LMDI) approach, a major IDA technique. Since the M-LMDI is based on geometric mean type indices and chain computation, we need some appropriate method to cope with the difficulties that arise. We present a numerical illustration of the proposed method using the energy consumption and real value added data of the US manufacturing industry, and compare the results obtained by the Fisher real energy intensity index.

Suggested Citation

  • Choi, Ki-Hong & Ang, B.W., 2012. "Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis," Energy Economics, Elsevier, vol. 34(1), pages 171-176.
  • Handle: RePEc:eee:eneeco:v:34:y:2012:i:1:p:171-176
    DOI: 10.1016/j.eneco.2011.04.011
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    References listed on IDEAS

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    More about this item

    Keywords

    Divisia index; Energy intensity; Index decomposition analysis; LMDI;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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