Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using Logarithmic Mean Divisia approach
This paper provides an empirical estimation of energy efficiency and other proximate factors that explain energy intensity in Australia for the period 1978-2009. The analysis is performed by decomposing the changes in energy intensity by means of energy efficiency, fuel mix and structural changes both at sectoral and sub-sectoral levels of the economy. Results show that the driving forces behind the decrease in energy intensity in Australia are efficiency effect and sectoral composition effect, where the former is found to be more prominent than the latter. Moreover, the favourable impact of the composition effect has been consistently slowed down in the recent past. A perfect positive association characterizes the relationship between energy intensity and carbon intensity in Australia. Given the trends in decomposition factors, it is necessary to boost energy efficiency further to reduce Australia’s overall contribution to energy intensity and carbon emissions in the future.
|Date of creation:||2012/01|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- 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.
- Zhang, ZhongXiang, 2003.
"Why did the energy intensity fall in China's industrial sector in the 1990s? The relative importance of structural change and intensity change,"
Elsevier, vol. 25(6), pages 625-638, November.
- Zhang, ZhongXiang, 1/12. "Why did the energy intensity fall in China's industrial sector in the 1990s? the relative importance of structural change and intensity change," MPRA Paper 13149, University Library of Munich, Germany.
- Wood, Richard, 2009. "Structural decomposition analysis of Australia's greenhouse gas emissions," Energy Policy, Elsevier, vol. 37(11), pages 4943-4948, November.
- G. Boyd & J. F. McDonald & M. Ross & D. A. Hansont, 1987. "Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-96.
- 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.
- Greening, Lorna A. & Davis, William B. & Schipper, Lee & Khrushch, Marta, 1997. "Comparison of six decomposition methods: application to aggregate energy intensity for manufacturing in 10 OECD countries," Energy Economics, Elsevier, vol. 19(3), pages 375-390, July.
- Liu, X.Q. & Ang, B.W. & Ong, H.L., 1992. "Interfuel substitution and decomposition of changes in industrial energy consumption," Energy, Elsevier, vol. 17(7), pages 689-696.
- Chunbo Ma & David I. Stern, 2006.
"China's Changing Energy Intensity Trend: A Decomposition Analysis,"
Rensselaer Working Papers in Economics
0615, Rensselaer Polytechnic Institute, Department of Economics.
- Ma, Chunbo & Stern, David I., 2008. "China's changing energy intensity trend: A decomposition analysis," Energy Economics, Elsevier, vol. 30(3), pages 1037-1053, May.
- Choi, Ki-Hong & Ang, B. W., 2001. "A time-series analysis of energy-related carbon emissions in Korea," Energy Policy, Elsevier, vol. 29(13), pages 1155-1161, November.
- Ang, B.W., 2006. "Monitoring changes in economy-wide energy efficiency: From energy-GDP ratio to composite efficiency index," Energy Policy, Elsevier, vol. 34(5), pages 574-582, March.
- Gilbert E. Metcalf, 2006.
"Energy Conservation in the United States: Understanding its Role in Climate Policy,"
NBER Working Papers
12272, National Bureau of Economic Research, Inc.
- Gilbert E. Metcalf, 2006. "Energy Conservation in the United States: Understanding its Role in Climate Policy," Discussion Papers Series, Department of Economics, Tufts University 0609, Department of Economics, Tufts University.
- Tanaka, Kanako, 2008. "Assessment of energy efficiency performance measures in industry and their application for policy," Energy Policy, Elsevier, vol. 36(8), pages 2877-2892, August.
- Richard B. Howarth & Lee Schipper & Bo Andersson, 1993. "The Structure and Intensity of Energy Use: Trends in Five OECD Nations," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 27-46.
- Hatzigeorgiou, Emmanouil & Polatidis, Heracles & Haralambopoulos, Dias, 2008. "CO2 emissions in Greece for 1990–2002: A decomposition analysis and comparison of results using the Arithmetic Mean Divisia Index and Logarithmic Mean Divisia Index techniques," Energy, Elsevier, vol. 33(3), pages 492-499.
- David I. Stern & Frank Jotzo, 2009.
"How Ambitious are China and India's Emissions Intensity Targets?,"
Environmental Economics Research Hub Research Reports
1051, Environmental Economics Research Hub, Crawford School of Public Policy, The Australian National University.
- Stern, David I. & Jotzo, Frank, 2010. "How ambitious are China and India's emissions intensity targets?," Energy Policy, Elsevier, vol. 38(11), pages 6776-6783, November.
- Stern, David I. & Jotzo, Frank, 2010. "How Ambitious are China and India’s Emissions Intensity Targets?," Research Reports 94947, Australian National University, Environmental Economics Research Hub.
- B. W. Ang & Ki-Hong Choi, 1997. "Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 59-73.
- Bosseboeuf, Didier & Chateau, Bertrand & Lapillonne, Bruno, 1997. "Cross-country comparison on energy efficiency indicators: the on-going European effort towards a common methodology," Energy Policy, Elsevier, vol. 25(7-9), pages 673-682.
- Wilson, Bruce & Trieu, Luan Ho & Bowen, Bruce, 1994. "Energy efficiency trends in Australia," Energy Policy, Elsevier, vol. 22(4), pages 287-295, April.
- Park, Se-Hark, 1992. "Decomposition of industrial energy consumption : An alternative method," Energy Economics, Elsevier, vol. 14(4), pages 265-270, October.
- Geller, Howard & Harrington, Philip & Rosenfeld, Arthur H. & Tanishima, Satoshi & Unander, Fridtjof, 2006. "Polices for increasing energy efficiency: Thirty years of experience in OECD countries," Energy Policy, Elsevier, vol. 34(5), pages 556-573, March.
- Sato, Kazuo, 1976. "The Ideal Log-Change Index Number," The Review of Economics and Statistics, MIT Press, vol. 58(2), pages 223-28, May.
- 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.
- Ang, B. W., 2004. "Decomposition analysis for policymaking in energy:: which is the preferred method?," Energy Policy, Elsevier, vol. 32(9), pages 1131-1139, June.
- Focacci, Antonio, 2003. "Empirical evidence in the analysis of the environmental and energy policies of a series of industrialised nations, during the period 1960-1997, using widely employed macroeconomic indicators," Energy Policy, Elsevier, vol. 31(4), pages 333-352, March.
- Ang, B.W. & Liu, Na, 2007. "Handling zero values in the logarithmic mean Divisia index decomposition approach," Energy Policy, Elsevier, vol. 35(1), pages 238-246, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:36250. 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: (Joachim Winter)
If references are entirely missing, you can add them using this form.