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Assessing Energy Consumption and Energy Intensity Changes in Pakistan: An Application of Complete Decomposition Model

  • Shaista Alam

    (Applied Economics Research Centre, University of Karachi.)

  • Mohammad Sabihuddin Butt

    (Applied Economics Research Centre, University of Karachi.)

Complete decomposition model has been employed in the present study to decompose the changes in energy consumption and energy intensity in Pakistan during 1960 to 1998. A general decomposition model raises a problem due to residual term. In some models the residual term is omitted, which causes a large estimation error, while in some models the residual term is regarded as an interaction that might create a puzzle for the analysis. A complete decomposition model is used here to solve this problem.

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File URL: http://www.pide.org.pk/pdf/PDR/2001/Volume2/135-147.pdf
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Article provided by Pakistan Institute of Development Economics in its journal The Pakistan Development Review.

Volume (Year): 40 (2001)
Issue (Month): 2 ()
Pages: 135-147

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Handle: RePEc:pid:journl:v:40:y:2001:i:2:p:135-147
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  1. Bossanyi, Ervin, 1979. "UK primary energy consumption and the changing structure of final demand," Energy Policy, Elsevier, vol. 7(3), pages 253-258, September.
  2. Claire P. Doblin, 1988. "Declining Energy Intensity in the U.S. Manufacturing Sector," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 109-135.
  3. Li, Jing-Wen & Shrestha, Ram M. & Foell, Wesley K., 1990. "Structural change and energy use : The case of the manufacturing sector in Taiwan," Energy Economics, Elsevier, vol. 12(2), pages 109-115, April.
  4. X. Q. Liu & B. W. Ang & H.L. Ong, 1992. "The Application of the Divisia Index to the Decomposition of Changes in Industrial Energy Consumption," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 161-178.
  5. Reitler, W. & Rudolph, M. & Schaefer, H., 1987. "Analysis of the factors influencing energy consumption in industry : A revised method," Energy Economics, Elsevier, vol. 9(3), pages 145-148, July.
  6. Park, Se-Hark, 1992. "Decomposition of industrial energy consumption : An alternative method," Energy Economics, Elsevier, vol. 14(4), pages 265-270, October.
  7. Park, Se-Hark & Dissmann, Bruno & Nam, Kee-Yung, 1993. "A cross-country decomposition analysis of manufacturing energy consumption," Energy, Elsevier, vol. 18(8), pages 843-858.
  8. 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.
  9. Jenne, C. A. & Cattell, R. K., 1983. "Structural change and energy efficiency in industry," Energy Economics, Elsevier, vol. 5(2), pages 114-123, April.
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