The evolution of the energy intensity of the basque industry from 1982 to 2001: A decomposition analysis

Alberto Ansuategi, Iñaki Arto

Abstract

In this article an index decomposition methodology is used to estimate the effect of intersectoral and intrasectoral changes in explaining the 38% reduction in industrial energy intensity in the Basque Autonomous Community from 1982 to 2001. Period-wise additive decomposition results show that 1) the decline is mainly explained by intrasectoral changes and that 2) intersectoral changes have hardly contributed to reduce the energy intensity of the Basque industrial sector. However, time-series decomposition analysis shows that 1) four different phases can be distinguished in the evolution of energy intensity of the Basque industry from 1982 to 2001 and 2) that the evolution of the «Iron and Steel» sector is determinant when explaining those phases. Moreover, the analysis stresses the necessity to disaggregate the «Iron and Steel» sector in order to be able to distinguish purely technological effects from the rest of intrasectoral changes.

Keywords

Energy intensity; decomposition analysis

Subject classification

Q40.

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References

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