IDEAS home Printed from https://ideas.repec.org/a/taf/ecsysr/v20y2008i1p97-109.html
   My bibliography  Save this article

Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition

Author

Listed:
  • Paul De Boer

Abstract

In recent years, a large number of empirical articles on structural decomposition analysis, which aims at disentangling an aggregate change in a variable into its r factors, has been published in this journal. Commonly used methods are the average of the two polar decompositions and the average of all r! elementary decompositions (Dietzenbacher and Los, 1998, D&L). We propose to use instead the 'ideal' Montgomery decomposition, which means that it satisfies the requirement of factor reversal imposed in index number theory. We prefer it to the methods previously mentioned. The average of the two polar decompositions is not 'ideal', so that the outcome depends on the ordering of the factors. The average of all elementary decompositions is 'ideal', but requires the computation of an ever increasing number of decompositions when the number of factors increases. Application to the example of D&L (four factors) shows that the three methods yield results that are close to each other.

Suggested Citation

  • Paul De Boer, 2008. "Additive Structural Decomposition Analysis and Index Number Theory: An Empirical Application of the Montgomery Decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 97-109.
  • Handle: RePEc:taf:ecsysr:v:20:y:2008:i:1:p:97-109
    DOI: 10.1080/09535310801892066
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/09535310801892066
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/09535310801892066?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Jose Miguel Albala-Bertrand, 1999. "Structural Change in Chile: 1960-90," Economic Systems Research, Taylor & Francis Journals, vol. 11(3), pages 301-320.
    2. Kazumi Hitomi & Yasuhide Okuyama & Geoffrey Hewings & Michael Sonis, 2000. "The Role of Interregional Trade in Generating Change in the Regional Economies of Japan, 1980-1990," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 515-537.
    3. 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.
    4. Erik Dietzenbacher & Bart Los, 2000. "Structural Decomposition Analyses with Dependent Determinants," Economic Systems Research, Taylor & Francis Journals, vol. 12(4), pages 497-514.
    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. 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.
    7. Aying Liu & David Saal, 2001. "Structural Change in Apartheid-era South Africa: 1975-93," Economic Systems Research, Taylor & Francis Journals, vol. 13(3), pages 235-257.
    8. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    9. Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
    10. Kiyoshi Fujikawa & Carlo Milana, 2002. "Input-Output Decomposition Analysis of Sectoral Price Gaps between Japan and China," Economic Systems Research, Taylor & Francis Journals, vol. 14(1), pages 59-79.
    11. Henrik Jacobsen, 2000. "Energy Demand, Structural Change and Trade: A Decomposition Analysis of the Danish Manufacturing Industry," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 319-343.
    12. Glen Peters & Edgar Hertwich, 2006. "Structural analysis of international trade: Environmental impacts of Norway," Economic Systems Research, Taylor & Francis Journals, vol. 18(2), pages 155-181.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    2. Liboreiro, Pablo R. & Fernández, Rafael & García, Clara, 2021. "The drivers of deindustrialization in advanced economies: A hierarchical structural decomposition analysis," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 138-152.
    3. Fernández-Amador, Octavio & Francois, Joseph & Oberdabernig, Doris & Tomberger, Patrick, 2021. "Energy footprints and the international trade network: A new dataset. Is the European Union doing it better?," Papers 1324, World Trade Institute.
    4. Jialing Zou & Weidong Liu & Zhipeng Tang, 2017. "Analysis of Factors Contributing to Changes in Energy Consumption in Tangshan City between 2007 and 2012," Sustainability, MDPI, vol. 9(3), pages 1-14, March.
    5. Mingxiang Deng & Wei Li & Yan Hu, 2016. "Decomposing Industrial Energy-Related CO 2 Emissions in Yunnan Province, China: Switching to Low-Carbon Economic Growth," Energies, MDPI, vol. 9(1), pages 1-19, January.
    6. Wang, Yanqiu & Zhu, Zhiwei & Zhu, Zhaoge & Liu, Zhenbin, 2019. "Analysis of China's energy consumption changing using the Mean Rate of Change Index and the logarithmic mean divisia index," Energy, Elsevier, vol. 167(C), pages 275-282.
    7. de Boer, P.M.C., 2008. "Energy decomposition analysis: the generalized Fisher index revisited," Econometric Institute Research Papers EI 2008-12, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    8. Lan, Jun & Malik, Arunima & Lenzen, Manfred & McBain, Darian & Kanemoto, Keiichiro, 2016. "A structural decomposition analysis of global energy footprints," Applied Energy, Elsevier, vol. 163(C), pages 436-451.
    9. repec:gam:jeners:v:9:y:2016:i:1:p:23:d:61618 is not listed on IDEAS
    10. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    11. Philipp Schepelmann & An Vercalsteren & José Acosta-Fernandez & Mathieu Saurat & Katrien Boonen & Maarten Christis & Giovanni Marin & Roberto Zoboli & Cathy Maguire, 2020. "Driving Forces of Changing Environmental Pressures from Consumption in the European Food System," Sustainability, MDPI, vol. 12(19), pages 1-30, October.
    12. Choi, Ki-Hong & Ang, B.W., 2012. "Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis," Energy Economics, Elsevier, vol. 34(1), pages 171-176.
    13. Wang, H. & Ang, B.W. & Su, Bin, 2017. "A Multi-region Structural Decomposition Analysis of Global CO2 Emission Intensity," Ecological Economics, Elsevier, vol. 142(C), pages 163-176.
    14. Kirill Muradov, 2021. "Structural decomposition analysis with disaggregate factors within the Leontief inverse," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 10(1), pages 1-17, December.
    15. Zhou, Xiaoyong & Zhou, Dequn & Wang, Qunwei, 2018. "How does information and communication technology affect China's energy intensity? A three-tier structural decomposition analysis," Energy, Elsevier, vol. 151(C), pages 748-759.
    16. Levinson, Arik, 2021. "Energy intensity: Deindustrialization, composition, prices, and policies in U.S. states," Resource and Energy Economics, Elsevier, vol. 65(C).
    17. Leying Wu & Zheng Wang, 2017. "Examining drivers of the emissions embodied in trade," PLOS ONE, Public Library of Science, vol. 12(4), pages 1-14, April.
    18. Edward, T. Huw & Lücke, Matthias, 2011. "Decompositions of wage inequality and growth in an advanced economy open to trade," Kiel Working Papers 1749, Kiel Institute for the World Economy (IfW Kiel).
    19. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    20. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.

    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. Mazzanti, Massimiliano & Montini, Anna, 2010. "Embedding the drivers of emission efficiency at regional level -- Analyses of NAMEA data," Ecological Economics, Elsevier, vol. 69(12), pages 2457-2467, October.
    2. Hong, Jae Pyo & Byun, Jeong Eun & Kim, Pang Ryong, 2016. "Structural changes and growth factors of the ICT industry in Korea: 1995–2009," Telecommunications Policy, Elsevier, vol. 40(5), pages 502-513.
    3. Rutger Hoekstra & Jeroen van den Bergh, 2002. "Structural Decomposition Analysis of Physical Flows in the Economy," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 23(3), pages 357-378, November.
    4. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    5. Shigemi Kagawa & Yuki Kudoh & Keisuke Nansai & Tomohiro Tasaki, 2008. "The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case," Economic Systems Research, Taylor & Francis Journals, vol. 20(1), pages 3-28.
    6. 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.
    7. Banie Naser Outchiri, 2020. "Contributing to better energy and environmental analyses: how accurate are decomposition analysis results?," Cahiers de recherche 20-11, Departement d'Economique de l'École de gestion à l'Université de Sherbrooke.
    8. Saari, M. Yusof & Dietzenbacher, Erik & Los, Bart, 2015. "Sources of Income Growth and Inequality Across Ethnic Groups in Malaysia, 1970–2000," World Development, Elsevier, vol. 76(C), pages 311-328.
    9. Anne Owen & Richard Wood & John Barrett & Andrew Evans, 2016. "Explaining value chain differences in MRIO databases through structural path decomposition," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 243-272, June.
    10. Wood, Richard & Lenzen, Manfred, 2009. "Structural path decomposition," Energy Economics, Elsevier, vol. 31(3), pages 335-341, May.
    11. Nagashima, Fumiya, 2018. "The sign reversal problem in structural decomposition analysis," Energy Economics, Elsevier, vol. 72(C), pages 307-312.
    12. Lenzen, Manfred, 2006. "Decomposition analysis and the mean-rate-of-change index," Applied Energy, Elsevier, vol. 83(3), pages 185-198, March.
    13. Ling Yang & Michael L. Lahr, 2019. "The Drivers of China’s Regional Carbon Emission Change—A Structural Decomposition Analysis from 1997 to 2007," Sustainability, MDPI, vol. 11(12), pages 1-18, June.
    14. Llop, Maria, 2017. "Changes in energy output in a regional economy: A structural decomposition analysis," Energy, Elsevier, vol. 128(C), pages 145-151.
    15. Roca, Jordi & Serrano, Monica, 2007. "Income growth and atmospheric pollution in Spain: An input-output approach," Ecological Economics, Elsevier, vol. 63(1), pages 230-242, June.
    16. Butnar, Isabela & Llop, Maria, 2011. "Structural decomposition analysis and input-output subsystems: Changes in CO2 emissions of Spanish service sectors (2000-2005)," Ecological Economics, Elsevier, vol. 70(11), pages 2012-2019, September.
    17. Tian, Kailan & Dietzenbacher, Erik & Yan, Bingqian & Duan, Yuwan, 2020. "Upgrading or downgrading: China's regional carbon emission intensity evolution and its determinants," Energy Economics, Elsevier, vol. 91(C).
    18. Wang, H. & Ang, B.W. & Su, Bin, 2017. "Assessing drivers of economy-wide energy use and emissions: IDA versus SDA," Energy Policy, Elsevier, vol. 107(C), pages 585-599.
    19. Philipp Schepelmann & An Vercalsteren & José Acosta-Fernandez & Mathieu Saurat & Katrien Boonen & Maarten Christis & Giovanni Marin & Roberto Zoboli & Cathy Maguire, 2020. "Driving Forces of Changing Environmental Pressures from Consumption in the European Food System," Sustainability, MDPI, vol. 12(19), pages 1-30, October.
    20. Ferreira Neto, Amir B. & Perobelli, Fernando S. & Bastos, Suzana Q.A., 2014. "Comparing energy use structures: An input–output decomposition analysis of large economies," Energy Economics, Elsevier, vol. 43(C), pages 102-113.

    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:taf:ecsysr:v:20:y:2008:i:1:p:97-109. 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: . General contact details of provider: http://www.tandfonline.com/CESR20 .

    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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/CESR20 .

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.