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Using logarithmic mean Divisia index to analyze changes in energy use and carbon dioxide emissions in Mexico's iron and steel industry

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  • Sheinbaum, Claudia
  • Ozawa, Leticia
  • Castillo, Daniel

Abstract

Using international comparisons and Log mean Divisia index, this paper analyzes energy and CO2 emission trends of Mexico's iron and steel industry during the period 1970-2006, examining CO2 emissions related to energy use and production process. The decomposition analysis is based on the structure/efficiency analysis for international comparisons, considering industrial structure and the best available technology. Results show that for the period 1970-2006, activity drove up primary energy use by 227% instead of the actual 133%, while structure and efficiency effects drove it down by 5% and by 90% respectively. The important improvement in Mexican iron and steel primary energy efficiency reduced the gap between best international practice and actual primary energy consumption from 103% in 1970 to only 15% in 2006. CO2 emissions from fuel consumption and production process increased by 134%, and in addition to structure and efficiency, fuel share effect also drove down emissions by 4.2% in the entire period.

Suggested Citation

  • Sheinbaum, Claudia & Ozawa, Leticia & Castillo, Daniel, 2010. "Using logarithmic mean Divisia index to analyze changes in energy use and carbon dioxide emissions in Mexico's iron and steel industry," Energy Economics, Elsevier, vol. 32(6), pages 1337-1344, November.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:6:p:1337-1344
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    References listed on IDEAS

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