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STRUCTURAL DECOMPOSITION ANALYSIS APPLIED TO ENERGY AND EMISSIONS: AGGREGATION ISSUES

Bin Su and B. W. Ang

Economic Systems Research, 2012, vol. 24, issue 3, 299-317

Abstract: With the introduction of the environmentally extended input--output (I--O) framework, traditional economic I--O modeling and analysis can be conveniently adopted in energy and emission studies. Based on such an extended framework, many empirical studies investigating the driving forces of energy consumption and emission changes using structural decomposition analysis have been reported. Three aggregation issues are inherent in such decomposition studies, namely sector aggregation, spatial aggregation and temporal aggregation. This study, as an extension of our previous work on the first two issues, focuses on the third or temporal aggregation. An empirical study using the emission data of China from 1997 to 2007 is presented to illustrate the problems involved. How to deal with temporal aggregation and its possible interactions with the other two aggregations is also discussed.

Date: 2012
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