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New Approach to Energy Intensity in the Eu – Total Energy and Carbon Cost Approach

Author

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  • Mirjana Radovanović
  • Sanja Filipović

Abstract

The main objective of this manuscript is to look anew at Energy intensity, an indicator often used as measure of efficient economic development, which currently does not include any environmental component. The authors compared results obtained on the same sample by using Energy Intensity , a well known indicator, and Index of Energy Intensity Cost , an improved indicator suggested by the authors. The new indicator includes carbon emission cost, since 96% of carbon emission is result of energy consumption. Besides the introduction of a new component, the authors changed the nature of the indicator itself. Namely, traditional Energy intensity is based on physical values. The new indicator is expressed in monetary values – more suitable for monitoring economic development. Monitoring in the EU27 region, by using two chosen indicators, shows opposite results. Measuring of Energy Intensity , EU27 region showed positive trends. Measuring of Index of Energy Intensity Cost showed negative trends. Further modifications to Energy intensity are needed.

Suggested Citation

  • Mirjana Radovanović & Sanja Filipović, 2015. "New Approach to Energy Intensity in the Eu – Total Energy and Carbon Cost Approach," Energy & Environment, , vol. 26(4), pages 601-616, August.
    • Handle: RePEc:sae:engenv:v:26:y:2015:i:4:p:601-616
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