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Structural Change, Sector Disaggregation and Electricity Consumption in uk Industry

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  • B.W. Ang
  • J.F. Skea

Abstract

This paper discusses the decomposition technique for identifying the relative contributions of output growth, structural change and energy intensity to changes in industrial energy consumption. Apart from providing a deeper understanding of evolving patterns of energy consumption, such studies may have a role to play in assessing the degree to which policies and measures have contributed to the achievement of energy and environmental goals. However, there are a number of problems associated with the technique that the analyst needs to be aware of in using it and in interpreting the results it gives. These problems are discussed through analyzing the data on electricity consumption in UK industry. In particular, the problem associated with sector disaggregation is dealt with in detail.

Suggested Citation

  • B.W. Ang & J.F. Skea, 1994. "Structural Change, Sector Disaggregation and Electricity Consumption in uk Industry," Energy & Environment, , vol. 5(1), pages 1-16, March.
    • Handle: RePEc:sae:engenv:v:5:y:1994:i:1:p:1-16
    DOI: 10.1177/0958305X9400500101
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    References listed on IDEAS

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    1. G. Boyd & J. F. McDonald & M. Ross & D. A. Hansont, 1987. "Separating the Changing Composition of U.S. Manufacturing Production from Energy Efficiency Improvements: A Divisia Index Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 77-96.
    2. X. Q. Liu & B. W. Ang & H.L. Ong, 1992. "The Application of the Divisia Index to the Decomposition of Changes in Industrial Energy Consumption," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 161-178.
    3. Ang, B.W., 1987. "Structural changes and energy-demand forecasting in industry with applications to two newly industrialized countries," Energy, Elsevier, vol. 12(2), pages 101-111.
    4. Boyd, Gale A. & Hanson, Donald A. & Sterner, Thomas, 1988. "Decomposition of changes in energy intensity : A comparison of the Divisia index and other methods," Energy Economics, Elsevier, vol. 10(4), pages 309-312, October.
    5. Ang, B.W. & Liu, X.Q. & Ong, H.L., 1992. "Sector disaggregation and the effect of structural change on industrial energy consumption," Energy, Elsevier, vol. 17(7), pages 679-687.
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    Cited by:

    1. Su, Bin & Huang, H.C. & Ang, B.W. & Zhou, P., 2010. "Input-output analysis of CO2 emissions embodied in trade: The effects of sector aggregation," Energy Economics, Elsevier, vol. 32(1), pages 166-175, January.
    2. Seck, Gondia Sokhna & Guerassimoff, Gilles & Maïzi, Nadia, 2016. "Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case," Energy Policy, Elsevier, vol. 89(C), pages 114-124.
    3. Hammond, G.P. & Norman, J.B., 2012. "Decomposition analysis of energy-related carbon emissions from UK manufacturing," Energy, Elsevier, vol. 41(1), pages 220-227.
    4. Ang, B. W., 1995. "Multilevel decomposition of industrial energy consumption," Energy Economics, Elsevier, vol. 17(1), pages 39-51, January.
    5. Xu, X.Y. & Ang, B.W., 2014. "Multilevel index decomposition analysis: Approaches and application," Energy Economics, Elsevier, vol. 44(C), pages 375-382.
    6. 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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