Activity Sectors and Energy Intensity: Decomposition Analysis and Policy Implications for European Countries (1991–2005)

Abstract

This paper studies the change in Energy Intensity (EI) of the main economic activities in the EU15 countries, which represents approximately 45% of their final energy consumption. The purpose is, first, to measure the different patterns between the countries by establishing differentiated typologies, and second, to investigate those reasons that explain the different trends by country. To attain our objective, the changes in EI are decomposed into their structural and efficiency components for EU15 countries for the period 1991-2005. Results reveal four different typologies for this set of countries, and show the importance of identifying those economic activities which, due to their special impact, are key to reducing energy consumption. The changes in the structural component are due mainly to a transformative process in which the importance of industry in the economy as a whole drops, while the opposite holds for services. However, the changes in the efficiency component do not seem to be linked to this same process. It does not appear as though the services sector resulted in a more efficient use of final energy. We have detected significant evidence of convergence for EI in the service sector that would help to understand the recent worsen evolution of EI in this sector (and in overall EI) of Southern European countries. It can also be concluded that an analysis of global EI change without distinguishing among its components can result in misleading conclusions and in improperly conceived Energy Policies.

Tracking development paths: Monitoring driving forces and the impact of carbon-free energy sources in Spain

“…In Spanish transport, Mendiluce and Schipper (2011) noted increased activity and shifts in mode from bus and rail to car and air travel. Within the economic sectors, Marrero and Ramos-Real (2013) found an increase in intensity from 1990 to 2005 attributable to disimprovement in technical efficiency and only limited improvement in structure. Mendiluce et al (2010) analysed sixteen economic sectors from 1995 to 2006 concluding that the intensity of many industry sub-sectors increased.…”

“…Mendiluce et al (2010) conducted a sixteen sector decomposition periodically from 1990 to 2006, noting that the energy intensity of the economy has been slow to improve. Marrero and Ramos-Real (2013) looked at the energy intensity of the economic sectors in the EU 15 from 1990 to 2005, decomposing intensity by structure and efficiency. They noted a strong increase in energy intensity in Spain due to a disimprovement in energy efficiency.…”

Applying ex post index decomposition analysis to final energy consumption for evaluating European energy efficiency policies and targets

“…The sectors agriculture, services, transportation and industry in Turkey are analysed by Yilmaz and Atak (2010). Marrero and Ramos-Real (2013) analysed the changes in energy intensity in the EU15 from 1991 to 2005. Fernández González et al (2014) studied the aggregated final energy consumption in the EU27.…”

Understanding the Causality between Carbon Dioxide Emission, Fossil Energy Consumption and Economic Growth in Developed Countries: An Empirical Study

“…Marrero took the advantage of a panel data set of 24 European countries in the period of 1990-2006 and applied a Dynamic Panel Data framework to examine the relationship of GHG emissions, growth and the energy mix in Europe, and found evidence for the existence of conditional convergence in terms of GHG emissions among the EU27 countries [26]. The change in energy intensity of the main economic activities in period of 1991-2005 of the EU15 countries was also investigated by Marrrero and Ramos-Real in 2013, and the results revealed four different typologies for EU15 countries and showed the importance of identifying those economic activities which are key to reducing energy consumption [27].…”