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Identifying the sources of energy use change: Multiple calibration decomposition analysis and structural decomposition analysis

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  • Okushima, Shinichiro
  • Tamura, Makoto

Abstract

Decomposition methodologies are requisite to identify the sources of changes in energy use or carbon dioxide emissions. This paper is an inquiry into the theoretical properties of such decomposition methodologies. The study first presents our new decomposition methodology – the Multiple Calibration Decomposition Analysis (MCDA) – as a tool for the investigation. Then, it theoretically reexamines an established decomposition methodology – the Structural Decomposition Analysis proposed by Casler and Rose (1998). Subsequently, the study empirically investigates the properties of both methodologies, applying them to an actual case: the changes in energy use and carbon dioxide emissions in Japan during the oil crises period, when the oil price had a significant influence on the economy. The result shows that understanding the theoretical properties of decomposition methodologies is essential for a precise interpretation of empirical results.

Suggested Citation

  • Okushima, Shinichiro & Tamura, Makoto, 2011. "Identifying the sources of energy use change: Multiple calibration decomposition analysis and structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 22(4), pages 313-326.
  • Handle: RePEc:eee:streco:v:22:y:2011:i:4:p:313-326
    DOI: 10.1016/j.strueco.2011.07.003
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    References listed on IDEAS

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    2. Arnold C. Harberger, 1962. "The Incidence of the Corporation Income Tax," Journal of Political Economy, University of Chicago Press, vol. 70, pages 215-215.
    3. Okushima, Shinichiro & Tamura, Makoto, 2010. "What causes the change in energy demand in the economy?: The role of technological change," Energy Economics, Elsevier, vol. 32(Supplemen), pages 41-46, September.
    4. Stephen Casler & Adam Rose, 1998. "Carbon Dioxide Emissions in the U.S. Economy: A Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 11(3), pages 349-363, April.
    5. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    6. Alan S. Manne, 1976. "ETA: A Model for Energy Technology Assessment," Bell Journal of Economics, The RAND Corporation, vol. 7(2), pages 379-406, Autumn.
    7. Okushima, Shinichiro & Tamura, Makoto, 2007. "Multiple calibration decomposition analysis: Energy use and carbon dioxide emissions in the Japanese economy, 1970-1995," Energy Policy, Elsevier, vol. 35(10), pages 5156-5170, October.
    8. 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.
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    10. Sue Wing, Ian, 2008. "Explaining the declining energy intensity of the U.S. economy," Resource and Energy Economics, Elsevier, vol. 30(1), pages 21-49, January.
    11. Rutger Hoekstra & Jeroen C. J. M. van den Bergh, 2006. "The Impact of Structural Change on Physical Flows in the Economy: Forecasting and Backcasting Using Structural Decomposition Analysis," Land Economics, University of Wisconsin Press, vol. 82(4), pages 582-601.
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    Cited by:

    1. Mohamad Taghvaee, Vahid & Hajiani, Parviz, 2015. "Environment, Energy, and Environmental Productivity of Energy: A Decomposition Analysis in China and the US," MPRA Paper 70057, University Library of Munich, Germany.
    2. Okushima, Shinichiro, 2016. "Measuring energy poverty in Japan, 2004–2013," Energy Policy, Elsevier, vol. 98(C), pages 557-564.
    3. Uduak Akpan & Ovunda Green & Subhes Bhattacharyya & Salisu Isihak, 2015. "Effect of Technology Change on $$\hbox {CO}_{2}$$ CO 2 Emissions in Japan’s Industrial Sectors in the Period 1995–2005: An Input–Output Structural Decomposition Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 61(2), pages 165-189, June.
    4. repec:eco:journ2:2017-04-31 is not listed on IDEAS

    More about this item

    Keywords

    Calibration; Carbon dioxide emissions; Decomposition; Energy use; Structural decomposition analysis;

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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