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Factors driving aggregate service sector energy intensities in Asia and Eastern Europe: A LMDI analysis

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  • Wang, Jianda
  • Dong, Kangyin
  • Hochman, Gal
  • Timilsina, Govinda R.

Abstract

The economywide energy intensities in the service sectors are declining in many countries worldwide. We identify the drivers of the declining trends by employing the Logarithmic Mean Divisia Index (LMDI) on annual data from 16 countries in the Asia and Eastern Europe for the 2000–2014 period. We find that the change in fuel mix has little contribution to driving the economywide energy intensity of the service sector down during the study horizon. Instead, the change in energy intensity contributes to a decrease in economywide energy intensity of service sectors in most countries except the Czech Republic, Estonia, Latvia, and Turkey. Moreover, since energy intensity is inseparable from economic development, changes in economic structure are an essential determinant of the economywide energy intensity of service sectors. This work also analyzes the sectoral attribution and energy feedstocks attribution of economywide energy intensity of the service sectors.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:enepol:v:172:y:2023:i:c:s0301421522005341
    DOI: 10.1016/j.enpol.2022.113315
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    More about this item

    Keywords

    Economywide energy intensity; Service sectors; Countries in Asia and Eastern Europe; Logarithmic mean divisia index (LMDI) method; Contribution analysis;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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