Measuring energy efficiency - structural and index decomposition analysis

Paulina Stachura

Abstract


Aim: The aim is to recognize the main determinants of the energy efficiency improvement in transport in Poland in the years 2000-2014 using structural and index decomposition analysis, and to identify areas where there is still potential for further reduction of energy consumption.

Design / Research methods: Techniques used to analyse changes in energy use are: structural decomposition analysis and index decomposition analysis. Each of these two methods is characterized by distinctive, unique techniques and approaches, as they have developed quite independently. Index decomposition analysis measures the impact of energy efficiency gains on the level of energy consumption, at the most detailed sector disaggregation level allowed by the available data. Whereas structural decomposition analysis allows to analyse the impact of the external factors, such as technological, demand, and demographic effects, on the fluctuations of the total energy consumption. The similarities and differences between the two approaches are summarized and illustrated with a numerical example of Polish transport.

Conclusions / findings: The article recognizes the main determinants of the energy efficiency improvement in transport sector in Poland in the years 2000-2014. In case of Poland ODEX shows an overall progress of energy efficiency in transport by 24.3%. Results obtained with decomposition analysis indicate large divergences in energy efficiency improvements between modes of transport and vehicle types and identify areas where there is still potential for further reduction of energy consumption. Results from decomposing structure of energy use, show activity effect to be main reason for energy use growth. The distribution of each mode in total traffic of passengers and goods changes toward less energy efficient modes. The only factor driving down the energy use is energy savings.

Originality / value of the article: Using two methods of decomposition analysis and comparing obtained outcomes allows to get a broader view on energy use trends. Results presented in this article are a good starting point for further detailed analysis of changes in energy use of transport.

Keywords


energy efficiency, index decomposition analysis, structural decomposition analysis, indicators, energy

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References


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DOI: http://dx.doi.org/10.29015/cerem.584

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The Central European Review of Economics and Management

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