Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002
The steadily increasing focus on energy production and consumption has led to growing research attention to patterns of energy use within economies. Of particular interest has been comparing the driving forces of increasing efficiency and economic structural change. Input-output analysis (IOA) and decomposition analysis have become critical tools for performing such analyses. This study analyzes aggregate energy use in the United States in 1997 and 2002 to discover the causes of changing energy usage and flows. Results show that rising population and household consumption acted to drive up energy demand, but this driving force was offset by considerable structural change within the economy, particularly related to a quickly increasing trade deficit in manufacturing goods. Thus, while total energy intensity, the ratio of energy use to economic output, declined by approximately 12% between 1997 and 2002, changes in the structure of the economy explain this drop more than increased energy efficiency. The level of aggregation at which decomposition analyses are run was identified as a crucially sensitive parameter for the determination of structural change, and future studies should specifically address the amount of detail necessary to adequately measure changes in economic structure.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Erik Dietzenbacher & Jesper Stage, 2006. "Mixing oil and water? Using hybrid input-output tables in a Structural decomposition analysis," Economic Systems Research, Taylor & Francis Journals, vol. 18(1), pages 85-95.
- Norihiko Yamano & Nadim Ahmad, 2006. "The OECD Input-Output Database: 2006 Edition," OECD Science, Technology and Industry Working Papers 2006/8, OECD Publishing.
- Gilbert E. Metcalf, 2008. "An Empirical Analysis of Energy Intensity and Its Determinants at the State Level," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 1-26.
- Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
- Pizer, William, 2005. "The Case for Intensity Targets," Discussion Papers dp-05-02, Resources For the Future.
- Murtishaw, Scott & Schipper, Lee, 2001. "Disaggregated analysis of US energy consumption in the 1990s: evidence of the effects of the internet and rapid economic growth," Energy Policy, Elsevier, vol. 29(15), pages 1335-1356, December.
- Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
- Ang, B.W. & Liu, F.L., 2001. "A new energy decomposition method: perfect in decomposition and consistent in aggregation," Energy, Elsevier, vol. 26(6), pages 537-548.
- Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
- Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-71, August.
- Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
- Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
- Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:37:y:2009:i:4:p:1561-1570. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If references are entirely missing, you can add them using this form.