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Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach

G. Boyd, J. F. McDonald, M. Ross, and D. A. Hansont

Year: 1987
Volume: Volume 8
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol8-No2-6
View Abstract

Abstract:
The demand for energy is normally broken down into five sectors: industry, utilities, the residential sector, the commercial sector, and transportation. Industry is the most heterogeneous of these with manufacturing accounting for about 80 percent of total industrial energy demand. Manufacturing is itself a very heterogeneous collection of production activities. As defined by the Standard Industrial Classification (SIC) method of the U.S. Department of Commerce, there were 448 manufacturing sectors in 1972.



The Application of the Divisia Index to the Decomposition of Changes in Industrial Energy Consumption

X. Q. Liu, B. W. Ang and H.L. Ong

Year: 1992
Volume: Volume 13
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol13-No4-9
View Abstract

Abstract:
We review a number of methods that have recently been proposed to decompose changes in industrial energy consumption. We then propose two parametric methods based on the Divisia index, where the integral path problem in the Divisia index is transformed into a parameter estimation problem. It is shown that there can be an infinite number of sets of decomposition results, each corresponding to a particular combination of parameter values, and that several recently proposed methods are in fact special cases of these two methods. We then introduce an approach to estimate the parameter values uniquely. Referred to as the Adaptive Weighting Divisia Method, this method is supported by vigorous mathematical analysis and does not involve arbitrary guesses of parameter valuesas is the case for the existing methods. We also discuss the application and the associated statistical problems of the various decomposition methods, and present the results of a study using the data for Singapore industry.



Decomposition of SO2, NO1 and CO2 Emissions from Energy Use of Major Economic Sectors in Taiwan

Sue J. Lin and Tzu C. Chang

Year: 1996
Volume: Volume17
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol17-No1-1
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Abstract:
In this paper we use the Divisia index approach to decompose emission changes of SO2, NOx and CO2 from major economic sectors in Taiwan during 1980 to 1992. The study highlights the interrelationships between energy use and environmental quality, and provides insights for policy making. The emission changes are decomposed into five components-pollution coefficient, fuel mix, energy intensity, economic growth and industrial structure. Of all components analyzed, economic growth had the largest positive effect on emission changes for Taiwan's major economic sectors. Emissions of SO2 in industry and other sectors showed a decreasing trend due to fuel quality improvements and pollution control. However, NOx and CO2 emissions increased sharply in all sectors. Comparisons were also made with Germany, Japan and USA. This study hay shown that improvement in energy efficiency, pollution control and fuel substitution are major options to reduce SO2, NOx and CO2 emissions.



Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method

B. W. Ang and Ki-Hong Choi

Year: 1997
Volume: Volume18
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-3
View Abstract

Abstract:
Several methods for decomposing energy consumption or energy-induced gas emissions in industry have been proposed by various analysts. Two commonly encountered problems in the application of these methods are the existence of a residual after decomposition and the handling of the value zero In the data set. To overcome these two problems, we modify the often used Divisia index decomposition method by replacing the arithmetic mean weight function by a logarithmic one. This refined Divisia index method can be shown to give perfect decomposition with no residual. It also gives converging decomposition results when the zero values in the data set are replaced by a sufficiently small number. The properties of the method are highlighted using the data of the Korean industry.



Emissions of SO2, NOx and CO2 in Transition Economies: Emission Inventories and Divisia Index Analysis

Laurent Viguier

Year: 1999
Volume: Volume20
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No2-3
View Abstract

Abstract:
This paper analyses SO2, NOx, and CO2 emissions in three Eastern countries (Hungary, Poland and Russia) and in three OECD countries (France, the United Kingdom and the United States) for 1971-1994. The energy balances method is used to evaluate the emissions from major economic sectors. The emphasis is on explaining high levels of per capita emissions in transition economies. The analysis of the environment-economic growth relationship shows high emission intensities compared to OECD countries. A Divisia index approach is used to decompose the change in emission intensities into the effects of four components: emission factors, fuel mix, economic structure, and energy intensity. The main contribution to high emission intensities in transition economies is from the persistence of high energy intensities.



A Note: Will Tomorrow's Energy Efficiency Indices Prove Useful in Economic Studies?

Jay Zarnikau

Year: 1999
Volume: Volume20
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No3-6
View Abstract

Abstract:
Recent attempts to construct national energy efficiency indices begin with the construction of "Btu aggregates" which are developed by adding together different energy resources based on their heating potential values or the heating values of the primary energy resources used to produce the energy resources which are ultimately consumed. The resulting indices may be of limited use in economic studies, where it is often important to consider the relative economic value of various component resources and their substitutability in response to relative price changes. In such applications, But aggregates will tend to suggest greater achievements in energy efficiency during periods of electrification than would an approach which aggregates different energy resources based on their market values.



A Note on Trends in European Industrial Pollution Intensities: A Divisia Index Approach

Matthew A. Cole, Robert J.R. Elliott and Kenichi Shimamoto

Year: 2005
Volume: Volume 26
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol26-No3-3
View Abstract

Abstract:
This paper attempts to identify whether declining industrial pollution intensities in many European countries are a result of reductions in sectoral emissions intensities (i.e. the effects of regulations and technology) or changes to the product mix (e.g. the decline of heavy industries). This distinction is important since reductions in pollution that are a result of changes to the product mix may simply reflect a transfer of pollution from one country to another, rather than a net reduction. We attempt to resolve this issue by applying the divisia decomposition technique to a new dataset of industry-specific emissions intensities for three common air pollutants, for four European countries. Our results generally indicate the dominance of the sectoral intensity effect although, for the UK in particular, evidence of an increasingly clean product mix is found.



A Structural Decomposition Analysis of Global and National Energy Intensity Trends

Daniel Croner and Ivan Frankovic

Year: 2018
Volume: Volume 39
Number: Number 2
DOI: 10.5547/01956574.39.2.dcro
View Abstract

Abstract:
This paper analyses recent energy intensity trends for 40 major economies using a structural decomposition analysis. Our focus lies on the question whether improvements in energy intensity were caused by structural change towards a greener economy or by technological improvements. We account for intersectoral trade by using the World Input-Output database and adjust sectoral energy use via the environmentally extended input-output analysis. We find strong differences between consumption and production-based 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 only using production-based sectoral energy data, we find structural effects on energy intensity reductions to be systematically weaker under consumption-based data.





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