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Decomposition analysis of gas consumption in the residential sector in Ireland

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  • Rogan, Fionn
  • Cahill, Caiman J.
  • Ó Gallachóir, Brian P.

Abstract

To-date, decomposition analysis has been widely used at the macro-economic level and for in-depth analyses of the industry and transport sectors; however, its application in the residential sector has been rare. This paper uses the Log-Mean Divisia Index I (LMDI-I) methodology to decompose gas consumption trends in the gas-connected residential sector in Ireland from 1990 to 2008, which despite an increasing number of energy efficiency policies, experienced total final consumption growth of 470%. The analysis decomposes this change in gas consumption into a number of effects, examining the impact over time of market factors such as a growing customer base, varying mix of dwelling types, changing share of vacant dwellings, changing size of new dwellings, the impact of building regulations policy and other factors such as the weather. The analysis finds the most significant effects are changing customer numbers and changing intensity; the analysis also quantifies the impact of building regulations and compares it with other effects such as changing size of new dwellings. By comparing the historical impact on gas consumption of policy factors and non-policy factors, this paper highlights the challenge for policy-makers in achieving overall energy consumption reduction.

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  • Rogan, Fionn & Cahill, Caiman J. & Ó Gallachóir, Brian P., 2012. "Decomposition analysis of gas consumption in the residential sector in Ireland," Energy Policy, Elsevier, vol. 42(C), pages 19-36.
    • Handle: RePEc:eee:enepol:v:42:y:2012:i:c:p:19-36
    DOI: 10.1016/j.enpol.2011.10.059
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    3. Harold, Jason & Lyons, Seán & Cullinan, John, 2015. "The determinants of residential gas demand in Ireland," Energy Economics, Elsevier, vol. 51(C), pages 475-483.
    4. Trotta, Gianluca, 2020. "Assessing energy efficiency improvements and related energy security and climate benefits in Finland: An ex post multi-sectoral decomposition analysis," Energy Economics, Elsevier, vol. 86(C).
    5. McCoy, Daire & Curtis, John, 2018. "Exploring the spatial and temporal determinants of gas central heating adoption," Resource and Energy Economics, Elsevier, vol. 52(C), pages 64-86.
    6. Vaninsky, Alexander, 2014. "Factorial decomposition of CO2 emissions: A generalized Divisia index approach," Energy Economics, Elsevier, vol. 45(C), pages 389-400.
    7. Feng Dong & Bolin Yu & Yifei Hua & Shuaiqing Zhang & Yue Wang, 2018. "A Comparative Analysis of Residential Energy Consumption in Urban and Rural China: Determinants and Regional Disparities," IJERPH, MDPI, vol. 15(11), pages 1-19, November.
    8. Curtis, John & McCoy, Daire & Aravena, Claudia, 2018. "Heating system upgrades: The role of knowledge, socio-demographics, building attributes and energy infrastructure," Energy Policy, Elsevier, vol. 120(C), pages 183-196.
    9. McCoy, Daire & Curtis, John, 2016. "The Timing and other Determinants of Gas Central Heating Adoption," Papers WP539, Economic and Social Research Institute (ESRI).
    10. Chiodi, Alessandro & Gargiulo, Maurizio & Rogan, Fionn & Deane, J.P. & Lavigne, Denis & Rout, Ullash K. & Ó Gallachóir, Brian P., 2013. "Modelling the impacts of challenging 2050 European climate mitigation targets on Ireland’s energy system," Energy Policy, Elsevier, vol. 53(C), pages 169-189.
    11. Jennings, Mark G., 2013. "A smarter plan? A policy comparison between Great Britain and Ireland's deployment strategies for rolling out new metering technologies," Energy Policy, Elsevier, vol. 57(C), pages 462-468.
    12. Holzmann, Angela & Adensam, Heidelinde & Kratena, Kurt & Schmid, Erwin, 2013. "Decomposing final energy use for heating in the residential sector in Austria," Energy Policy, Elsevier, vol. 62(C), pages 607-616.
    13. Curtis, John & Grilli, Gianluca, 2020. "Does moving home affect residential heating decisions? exploring heating fuel switching in Ireland," Papers WP684, Economic and Social Research Institute (ESRI).
    14. Curtis, John & McCoy, Daire & Aravena Novielli, Claudia, 2017. "Determinants of residential heating system choice: an analysis of Irish households," Papers WP576, Economic and Social Research Institute (ESRI).
    15. Xu, X.Y. & Ang, B.W., 2014. "Analysing residential energy consumption using index decomposition analysis," Applied Energy, Elsevier, vol. 113(C), pages 342-351.
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    18. Huang, Yun-Hsun, 2020. "Examining impact factors of residential electricity consumption in Taiwan using index decomposition analysis based on end-use level data," Energy, Elsevier, vol. 213(C).

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