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Decomposition of the energy-intensity index with application for the Korean manufacturing industry

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  • Choi, Ki-Hong
  • Ang, B.W.
  • Ro, K.K.

Abstract

We present a method for decomposing industrial energy demand using the Divisia approach. This method involves decomposition of the aggregate energy-intensity index measured in terms of energy consumption per unit output. The factors considered are changes in production structure and sectoral energy intensities. The effect associated with sectoral energy intensities is further decomposed into those associated with fuel substitution and real energy intensities. We have applied the methodology to data of the Korean manufacturing industry. The results obtained show that increases in aggregate intensity for total energy consumption since 1988 are due primarily to the effect of increased real energy intensities. The contributions from structural changes and interfuel substitution were relatively small.

Suggested Citation

  • Choi, Ki-Hong & Ang, B.W. & Ro, K.K., 1995. "Decomposition of the energy-intensity index with application for the Korean manufacturing industry," Energy, Elsevier, vol. 20(9), pages 835-842.
    • Handle: RePEc:eee:energy:v:20:y:1995:i:9:p:835-842
    DOI: 10.1016/0360-5442(95)00041-E
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    Cited by:

    1. 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, , vol. 18(3), pages 59-73, July.
    2. 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.
    3. Lin, Boqiang & Du, Kerui, 2014. "Decomposing energy intensity change: A combination of index decomposition analysis and production-theoretical decomposition analysis," Applied Energy, Elsevier, vol. 129(C), pages 158-165.
    4. Serrenho, André Cabrera & Sousa, Tânia & Warr, Benjamin & Ayres, Robert U. & Domingos, Tiago, 2014. "Decomposition of useful work intensity: The EU (European Union)-15 countries from 1960 to 2009," Energy, Elsevier, vol. 76(C), pages 704-715.
    5. B.W. Ang, 1997. "Decomposition of Aggregate Energy Intensity of Industry with Application to China, Korea and Taiwan," Energy & Environment, , vol. 8(1), pages 1-11, March.
    6. Fei, Rilong & Lin, Boqiang, 2016. "Energy efficiency and production technology heterogeneity in China's agricultural sector: A meta-frontier approach," Technological Forecasting and Social Change, Elsevier, vol. 109(C), pages 25-34.
    7. Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
    8. Olanrewaju, O.A. & Jimoh, A.A. & Kholopane, P.A., 2012. "Integrated IDA–ANN–DEA for assessment and optimization of energy consumption in industrial sectors," Energy, Elsevier, vol. 46(1), pages 629-635.
    9. Song, Ho-Jun & Lee, Seungmoon & Maken, Sanjeev & Ahn, Se-Woong & Park, Jin-Won & Min, Byoungryul & Koh, Wongun, 2007. "Environmental and economic assessment of the chemical absorption process in Korea using the LEAP model," Energy Policy, Elsevier, vol. 35(10), pages 5109-5116, October.
    10. Lin, Boqiang & Du, Kerui, 2014. "Measuring energy efficiency under heterogeneous technologies using a latent class stochastic frontier approach: An application to Chinese energy economy," Energy, Elsevier, vol. 76(C), pages 884-890.
    11. 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.

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