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A structural decomposition analysis of global and national energy intensity trends

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  • Croner, Daniel
  • Frankovic, Ivan

Abstract

This paper analyses recent energy intensity trends of 40 major economies. Our main focus lies on the question whether improvements in energy efficiency were due to structural change towards a greener economy or a consequence of technological improvements. We account for intersectoral trade by using the World Input-Output database and adjust sector-specific energy use via the environmentally extended input-output analysis. We find strongdifferences between adjusted and unadjusted energy consumption across sectors, particularly in the construction and electricity industry. Using the three factor Logarithmic Mean Divisia Index method, our decomposition analysis shows that recent energy intensity reductions were mostly driven by technological advances. Structural changes within countries played only a minor role, whereas international trade by itself even increased global energy intensity. Compared to a previous study that used unadjusted sectoral energy data, we find structural effects on energy intensity reductions to be systematically weaker under adjusted data. The differences are particularly striking on a country-level, e.g. for Japan and Turkey.

Suggested Citation

  • Croner, Daniel & Frankovic, Ivan, 2016. "A structural decomposition analysis of global and national energy intensity trends," ECON WPS - Vienna University of Technology Working Papers in Economic Theory and Policy 08/2016, Vienna University of Technology, Institute for Mathematical Methods in Economics, Research Group Economics (ECON).
  • Handle: RePEc:zbw:tuweco:082016
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    Cited by:

    1. Croner, Daniel & Koller, Wolfgang & Mahlberg, Bernhard, 2018. "Economic drivers of greenhouse gas-emissions in small open economies: A hierarchical structural decomposition analysis," MPRA Paper 85755, University Library of Munich, Germany.
    2. Su, Bin & Ang, B.W. & Li, Yingzhu, 2019. "Structural path and decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 83(C), pages 345-360.
    3. Hannesson, Rögnvaldur, 2018. "CO2 intensity and GDP per capita," Discussion Papers 2018/16, Norwegian School of Economics, Department of Business and Management Science.
    4. Ninpanit, Panittra & Malik, Arunima & Wakiyama, Takako & Geschke, Arne & Lenzen, Manfred, 2019. "Thailand’s energy-related carbon dioxide emissions from production-based and consumption-based perspectives," Energy Policy, Elsevier, vol. 133(C).

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    JEL classification:

    • F0 - International Economics - - General

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