Changes in energy efficiency in Australia: a decomposition of aggregate energy intensity using logarithmic mean Divisia approach

Shahiduzzaman, Md and Alam, Khorshed (2013) Changes in energy efficiency in Australia: a decomposition of aggregate energy intensity using logarithmic mean Divisia approach. Energy Policy, 56. pp. 341-351. ISSN 0301-4215

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.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Copyright 2012 Elsevier Ltd. Permanent restricted access to published version due to publisher copyright policy. Originally submitted as Munich University Library Working Paper 36250 http://mpra.ub.uni-muenchen.de/36250/, now published.
Faculty / Department / School: Historic - Faculty of Business and Law - School of Accounting, Economics and Finance
Date Deposited: 30 Apr 2013 00:10
Last Modified: 08 Mar 2015 23:54
Uncontrolled Keywords: energy intensity; energy efficiency; index decomposition analysis
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
14 Economics > 1403 Econometrics > 140303 Economic Models and Forecasting
14 Economics > 1403 Econometrics > 140305 Time-Series Analysis
Socio-Economic Objective: D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
B Economic Development > 85 Energy > 8507 Energy Conservation and Efficiency > 850701 Commercial Energy Conservation and Efficiency
Identification Number or DOI: 10.1016/j.enpol.2012.12.069
URI: http://eprints.usq.edu.au/id/eprint/20792

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