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A new energy decomposition method: perfect in decomposition and consistent in aggregation

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  • Ang, B.W.
  • Liu, F.L.

Abstract

A new energy decomposition method, called the Log-Mean Divisia Index Method I (LMDI I), is presented. It has the desirable properties of perfect decomposition and consistency in aggregation. Perfect decomposition ensures that the decomposition results obtained do not contain a residual term. Consistency in aggregation allows estimates for sub-groups to be aggregated in a consistent manner. The formulation of the new method and the usefulness of aggregation consistency in energy decomposition studies are described. Two case studies on energy-related CO2 emissions are presented.

Suggested Citation

  • Ang, B.W. & Liu, F.L., 2001. "A new energy decomposition method: perfect in decomposition and consistent in aggregation," Energy, Elsevier, vol. 26(6), pages 537-548.
    • Handle: RePEc:eee:energy:v:26:y:2001:i:6:p:537-548
    DOI: 10.1016/S0360-5442(01)00022-6
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    References listed on IDEAS

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