IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v26y2001i6p537-548.html

A new energy decomposition method: perfect in decomposition and consistent in aggregation

Author

Listed:
  • Ang, B.W.
  • Liu, F.L.

Abstract

A new energy decomposition method, called the Log-Mean Divisia Index Method I (LMDI I), is presented. It has the desirable properties of perfect decomposition and consistency in aggregation. Perfect decomposition ensures that the decomposition results obtained do not contain a residual term. Consistency in aggregation allows estimates for sub-groups to be aggregated in a consistent manner. The formulation of the new method and the usefulness of aggregation consistency in energy decomposition studies are described. Two case studies on energy-related CO2 emissions are presented.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:energy:v:26:y:2001:i:6:p:537-548
    DOI: 10.1016/S0360-5442(01)00022-6
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544201000226
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/S0360-5442(01)00022-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Ang, B.W & Zhang, F.Q, 1999. "Inter-regional comparisons of energy-related CO2 emissions using the decomposition technique," Energy, Elsevier, vol. 24(4), pages 297-305.
    2. Ang, B.W., 1993. "Sector disaggregation, structural effect and industrial energy use: An approach to analyze the interrelationships," Energy, Elsevier, vol. 18(10), pages 1033-1044.
    3. Ang, B. W. & Pandiyan, G., 1997. "Decomposition of energy-induced CO2 emissions in manufacturing," Energy Economics, Elsevier, vol. 19(3), pages 363-374, July.
    4. Hulten, Charles R, 1973. "Divisia Index Numbers," Econometrica, Econometric Society, vol. 41(6), pages 1017-1025, November.
    5. Greening, Lorna A. & Davis, William B. & Schipper, Lee, 1998. "Decomposition of aggregate carbon intensity for the manufacturing sector: comparison of declining trends from 10 OECD countries for the period 1971-1991," Energy Economics, Elsevier, vol. 20(1), pages 43-65, February.
    6. Ang, B.W & Zhang, F.Q & Choi, Ki-Hong, 1998. "Factorizing changes in energy and environmental indicators through decomposition," Energy, Elsevier, vol. 23(6), pages 489-495.
    7. repec:aen:journl:1992v13-04-a09 is not listed on IDEAS
    8. Diewert, W Erwin, 1978. "Superlative Index Numbers and Consistency in Aggregation," Econometrica, Econometric Society, vol. 46(4), pages 883-900, July.
    9. repec:aen:journl:1999v20-02-a03 is not listed on IDEAS
    10. repec:aen:journl:1997v18-03-a03 is not listed on IDEAS
    11. Sun, J.W. & Malaska, P., 1998. "CO2 emission intensities in developed countries 1980–1994," Energy, Elsevier, vol. 23(2), pages 105-112.
    12. 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.
    13. Ang, B. W., 1995. "Multilevel decomposition of industrial energy consumption," Energy Economics, Elsevier, vol. 17(1), pages 39-51, January.
    14. Boyd, Gale A. & Hanson, Donald A. & Sterner, Thomas, 1988. "Decomposition of changes in energy intensity : A comparison of the Divisia index and other methods," Energy Economics, Elsevier, vol. 10(4), pages 309-312, October.
    15. Sato, Kazuo, 1976. "The Ideal Log-Change Index Number," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 223-228, May.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. 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.
    2. Bor, Yunchang Jeffrey, 2008. "Consistent multi-level energy efficiency indicators and their policy implications," Energy Economics, Elsevier, vol. 30(5), pages 2401-2419, September.
    3. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Decomposition of CO2 emissions change from energy consumption in Brazil: Challenges and policy implications," Energy Policy, Elsevier, vol. 39(3), pages 1495-1504, March.
    4. Luukkanen, Jyrki & Kaivo-oja, Jari, 2002. "ASEAN tigers and sustainability of energy use--decomposition analysis of energy and CO2 efficiency dynamics," Energy Policy, Elsevier, vol. 30(4), pages 281-292, March.
    5. Ebohon, Obas John & Ikeme, Anthony Jekwu, 2006. "Decomposition analysis of CO2 emission intensity between oil-producing and non-oil-producing sub-Saharan African countries," Energy Policy, Elsevier, vol. 34(18), pages 3599-3611, December.
    6. Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, vol. 93(C), pages 313-329.
    7. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    8. Lenzen, Manfred, 2006. "Decomposition analysis and the mean-rate-of-change index," Applied Energy, Elsevier, vol. 83(3), pages 185-198, March.
    9. P. Fernández-González & M. Landajo & M.J. Presno, 2013. "Factors Influencing Changes In Aggregate Energy Consumption. An European Cross-Country Analysis," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 13(2), pages 18-30.
    10. Xu, X.Y. & Ang, B.W., 2014. "Multilevel index decomposition analysis: Approaches and application," Energy Economics, Elsevier, vol. 44(C), pages 375-382.
    11. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Analysis of energy-related CO2 (carbon dioxide) emissions and reduction potential in the Chinese non-metallic mineral products industry," Energy, Elsevier, vol. 68(C), pages 688-697.
    12. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Tracking European Union CO2 emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach," Energy, Elsevier, vol. 73(C), pages 741-750.
    13. Kaltenegger, Oliver, 2019. "What drives total real unit energy costs globally? A novel LMDI decomposition approach," CAWM Discussion Papers 110, University of Münster, Münster Center for Economic Policy (MEP).
    14. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    15. 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.
    16. Kim, Kyunam & Kim, Yeonbae, 2012. "International comparison of industrial CO2 emission trends and the energy efficiency paradox utilizing production-based decomposition," Energy Economics, Elsevier, vol. 34(5), pages 1724-1741.
    17. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    18. Kaltenegger, Oliver, 2020. "What drives total real unit energy costs globally? A novel LMDI decomposition approach," Applied Energy, Elsevier, vol. 261(C).
    19. Ang, B.W. & Huang, H.C. & Mu, A.R., 2009. "Properties and linkages of some index decomposition analysis methods," Energy Policy, Elsevier, vol. 37(11), pages 4624-4632, November.
    20. Luukkanen, J. & Kaivo-oja, J., 2002. "A comparison of Nordic energy and CO2 intensity dynamics in the years 1960–1997," Energy, Elsevier, vol. 27(2), pages 135-150.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:26:y:2001:i:6:p:537-548. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.