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Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using Logarithmic Mean Divisia approach

Md Shahiduzzaman and Khorshed Alam

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides an empirical estimation of energy efficiency and other proximate factors that explain energy intensity in Australia for the period 1978-2009. The analysis is performed by decomposing the changes in energy intensity by means of energy efficiency, fuel mix and structural changes both at sectoral and sub-sectoral levels of the economy. Results show that the driving forces behind the decrease in energy intensity in Australia are efficiency effect and sectoral composition effect, where the former is found to be more prominent than the latter. Moreover, the favourable impact of the composition effect has been consistently slowed down in the recent past. A perfect positive association characterizes the relationship between energy intensity and carbon intensity in Australia. Given the trends in decomposition factors, it is necessary to boost energy efficiency further to reduce Australia’s overall contribution to energy intensity and carbon emissions in the future.

Keywords: Energy intensity; Energy efficiency; Index decomposition analysis (search for similar items in EconPapers)
JEL-codes: O56 Q43 (search for similar items in EconPapers)
Date: 2012-01
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Journal Article: Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach (2013) Downloads
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