scholarly journals A Decomposition Analysis of the Korean Manufacturing Sector: Monetary vs. Physical Outputs

2021 ◽  
Vol 13 (11) ◽  
pp. 6192
Author(s):  
Junghwan Lee ◽  
Jinsoo Kim

This study analyzes the changes in energy consumption of the Korean manufacturing sector using the index decomposition analysis (IDA) method. To capture the production effect based on actual physical activities, we applied the activity revaluation (AR) approach in the analysis. We also developed energy consumption data in terms of primary energy supply to consider conversion loss in the energy sector to avoid any distortions in the intensity effect. The analysis covers every manufacturing subsector in Korea over the period between 2006 and 2018. Combining two distinctive approaches from the previous literature, the AR approach and primary energy-based analysis gives us helpful findings for a climate policy. First, the overall activity effect estimated from the physical output indicator is lower than that from the monetary output indicator. The monetary indicator shows that the share of energy-intensive industries decreases, whereas the physical indicator shows the opposite. Second, in terms of energy efficiency, the intensity effect is estimated as an increasing factor of energy use, whereas inversed results are shown when we use the monetary indicator. Lastly, unlike the previous studies, the AR approach results indicate that Korean manufacturing sectors have been shifting toward an energy-intensive, so it is hard to anticipate positive intensity effects, which means decreasing energy consumption factor, for a while. These results support why analyzing the driving forces of energy consumption through the AR approach and primary energy base is highly recommended.

2021 ◽  
Author(s):  
◽  
Rofhiwa Tevin Machivha

This research focuses on applying the Index Decomposition Analysis (IDA) to South Africa’s automotive industry to decompose energy consumption and further make use of regression analysis to understand how it relates to the economy. South Africa has been going through an energy crisis, which has resulted in ongoing load shedding as a way to manage this crisis. Looking at South Africa’s energy generation, it can be noted that the entire country depends on Eskom as the main supplier and of electricity, but it is unable to keep pace with the demand. The results of the research show that there exists a nexus across all segments between energy consumption and GDP; furthermore, the decomposition results show that energy consumption in some years experienced a reduction. However, it can be seen that an increase in energy consumption year on year is predominant; this then suggests that the reductions experienced were the result of a special event; hence, it can be deduced that overall energy consumption has increased slightly. The increase is as a result of the activity effect which contributed the most towards this whilst the structural effect yielded a negligible contribution. Lastly, the intensity effect contributed to the reduction in energy consumption as a result of sectoral shifts; this reduction contributed towards keeping the overall increase in energy consumption low. This study aimed to outline the differences in energy consumed during the production of different vehicle classes, citing various factors responsible for the changes in energy consumption during vehicle production, raising awareness with manufacturers on the impact industrial energy consumption has on the national energy grid and on advising medium to large manufacturers to become suppliers.


Author(s):  
Chibueze, E. Nnaji ◽  
Nnaji Moses ◽  
Jonathan N. Chimah ◽  
Monica C. Maduekwe

<div><p><em>This paper analysed the status of energy intensity of economic sectors (agriculture, industry, commercial, residential) in MINT (Mexico, Indonesia, Nigeria, Turkey) countries and its implications for sustainable development. We utilised descriptive statistics as well as the Logarithmic Mean Divisia Index (LMDI) decomposition analysis to examine energy and efficiency trends, from 1980-2013, in MINT countries. Empirical results indicate inefficient energy use in the residential and industrial sectors of Nigeria and Indonesia. The analysis  also indicates that income/output growth (activity effect) contributed to an increase in sectoral energy consumption of MINT countries. It also revealed that while structural effects contributed to a reduction in energy consumption in virtually all the sectors in Turkey and Mexico, it contributed to an increase in energy consumption of the residential, industrial and commercial sectors of Indonesia and Nigeria in virtually all the periods. These results suggest that a policy framework that emphasizes the utilization of energy efficient technologies especially electricity infrastructural development aimed at energy service availability, accessibility and affordability will help to trigger desirable economic development and ensure rapid sustainable development of MINT economies.</em></p></div>


2018 ◽  
Vol 2 (4) ◽  
pp. 71
Author(s):  
Paulina Stachura

Aim: The aim is to recognize the main determinants of the energy efficiency improvement in transport in Poland in the years 2000-2014 using structural and index decomposition analysis, and to identify areas where there is still potential for further reduction of energy consumption.Design / Research methods: Techniques used to analyse changes in energy use are: structural decomposition analysis and index decomposition analysis. Each of these two methods is characterized by distinctive, unique techniques and approaches, as they have developed quite independently. Index decomposition analysis measures the impact of energy efficiency gains on the level of energy consumption, at the most detailed sector disaggregation level allowed by the available data. Whereas structural decomposition analysis allows to analyse the impact of the external factors, such as technological, demand, and demographic effects, on the fluctuations of the total energy consumption. The similarities and differences between the two approaches are summarized and illustrated with a numerical example of Polish transport.Conclusions / findings: The article recognizes the main determinants of the energy efficiency improvement in transport sector in Poland in the years 2000-2014. In case of Poland ODEX shows an overall progress of energy efficiency in transport by 24.3%. Results obtained with decomposition analysis indicate large divergences in energy efficiency improvements between modes of transport and vehicle types and identify areas where there is still potential for further reduction of energy consumption. Results from decomposing structure of energy use, show activity effect to be main reason for energy use growth. The distribution of each mode in total traffic of passengers and goods changes toward less energy efficient modes. The only factor driving down the energy use is energy savings.Originality / value of the article: Using two methods of decomposition analysis and comparing obtained outcomes allows to get a broader view on energy use trends. Results presented in this article are a good starting point for further detailed analysis of changes in energy use of transport.


Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3864
Author(s):  
Qiucheng Li ◽  
Jiang Hu ◽  
Bolin Yu

The residential sector has become the second largest energy consumer in China. Urban residential energy consumption (URE) in China is growing rapidly in the process of urbanization. This paper aims to reveal the spatiotemporal dynamic evolution and influencing mechanism of URE in China. The spatiotemporal heterogeneity of URE during 2007–2018 is explored through Kernel density estimation and inequality measures (i.e., Gini coefficient, Theil index, and mean logarithmic deviation). Then, with several advantages over traditional index decomposition analysis approaches, the Generalized Divisia Index Method (GDIM) decomposition is employed to investigate the impacts of eight driving factors on URE. Furthermore, the national and provincial decoupling relationships between URE and residential income increase are studied. It is found that different provinces’ URE present a significant agglomeration effect; the interprovincial inequality in URE increases and then decreases during the study period. The GDIM decomposition results indicate the income effect is the main positive factor driving URE. Besides, urban population, residential area, per capita energy use, and per unit area energy consumption positively influence URE. By contrast, per capita income, energy intensity, and residential density have negative effects on URE. There is evidence that only three decoupling states, i.e., weak decoupling, strong decoupling, and expansive negative decoupling, appear in China during 2007–2018. Specifically, weak decoupling is the dominant state among different regions. Finally, some suggestions are given to speed up the construction of energy-saving cities and promote the decoupling process of residential energy consumption in China. This paper fills some research gaps in urban residential energy research and is important for China’s policymakers.


2020 ◽  
Vol 9 (3) ◽  
pp. 490
Author(s):  
Iman Al-Ayouty

Subsidizing electricity and non-electrical energy products has affected manufacturing output in Egypt, especially given the structure of Egypt’s manufacturing sector which leaning heavily towards capital- and energy-intensive products. This effect is captured in a production function estimated for the twenty industries making up Egypt’s manufacturing sector over the period 2002-2016. With homogeneous parameters, the estimated output elasticity of energy is 0.28. With panel member parameter heterogeneity, the output elasticity of energy is positive and statistically significant in ten manufacturing industries. Negative and statistically significant elasticity is however found in refined petroleum products, fabricated metal products, and electrical machinery and equipment. This indicates suboptimal energy use. Elasticity is also negative, though statistically insignificant, in: textiles, basic metals, and “other manufacturing”. Except for “other manufacturing”, industries of negative elasticity are all energy-intensive.  Moreover, refined petroleum, fabricated metals and basic metals are pollution-intensive. A priority policy measure is to remove subsidies from energy inefficient and polluting industries as opposed to mere ‘across-the-board’ removal. Keywords: energy consumption; manufacturing industries; energy- and pollution intensive; Egypt


Author(s):  
Jerzy Sowa ◽  
Maciej Mijakowski

A humidity-sensitive demand-controlled ventilation system is known for many years. It has been developed and commonly applied in regions with an oceanic climate. Some attempts were made to introduce this solution in Poland in a much severe continental climate. The article evaluates this system's performance and energy consumption applied in an 8-floor multi-unit residential building, virtual reference building described by the National Energy Conservation Agency NAPE, Poland. The simulations using the computer program CONTAM were performed for the whole hating season for Warsaw's climate. Besides passive stack ventilation that worked as a reference, two versions of humidity-sensitive demand-controlled ventilation were checked. The difference between them lies in applying the additional roof fans that convert the system to hybrid. The study confirmed that the application of demand-controlled ventilation in multi-unit residential buildings in a continental climate with warm summer (Dfb) leads to significant energy savings. However, the efforts to ensure acceptable indoor air quality require hybrid ventilation, which reduces the energy benefits. It is especially visible when primary energy use is analyzed.


Energies ◽  
2021 ◽  
Vol 14 (23) ◽  
pp. 8006
Author(s):  
Kristiāna Dolge ◽  
Dagnija Blumberga

The manufacturing industry is often caught in the sustainability dilemma between economic growth targets and climate action plans. In this study, a Log-Mean Divisia Index (LMDI) decomposition analysis is applied to investigate how the amount of industrial energy-related CO2 emissions in Latvia has changed in the period from 1995 to 2019. The change in aggregate energy-related CO2 emissions in manufacturing industries is measured by five different factors: the industrial activity effect, structural change effect, energy intensity effect, fuel mix effect, and emission intensity effect. The decomposition analysis results showed that while there has been significant improvement in energy efficiency and decarbonization measures in industry, in recent years, the impact of the improvements has been largely offset by increased industrial activity in energy-intensive sectors such as wood processing and non-metallic mineral production. The results show that energy efficiency measures in industry contribute most to reducing carbon emissions. In the future, additional policies are needed to accelerate the deployment of clean energy and energy efficiency technologies.


2020 ◽  
Vol 12 (16) ◽  
pp. 6563
Author(s):  
Roque G Stagnitta ◽  
Matteo V Rocco ◽  
Emanuela Colombo

Energy balances have been historically conceived based on a supply-side perspective, providing neither detailed information about energy conversion into useful services nor the effects that may be induced by the application of policies in other sectors to energy consumption. This article proposes an approach to a thorough assessment of the impact of efficiency policies on final energy uses, focusing on residential space heating and cooling, and capable of: (1) quantifying final useful services provided and (2) accounting for the global impact of efficiency policies on final energy use, taking advantage of Input–Output analysis. This approach is applied in five cities of Argentina. Firstly, the quantity of energy service provided (i.e., level of thermal comfort) for each city is evaluated and compared with the defined target. It is found out that heating comfort is guaranteed approximately as established, whereas in the cooling case the provision is twice the established level. Secondly, primary energy consumption of heating and cooling services is evaluated before and after different efficiency improvement policies. The results show that the major primary energy saving (52%) is obtained from the upgrading appliances scenario and reflect the importance of accounting for embodied energy in goods and services involved in interventions.


2020 ◽  
Vol 12 (8) ◽  
pp. 3185 ◽  
Author(s):  
Enkhjargal Enkhbat ◽  
Yong Geng ◽  
Xi Zhang ◽  
Huijuan Jiang ◽  
Jingyu Liu ◽  
...  

Ulaanbaatar, the capital city of Mongolia, is facing serious air pollution challenges—especially during the cold and long winter months—mainly due to fossil fuel combustion. This study investigates the socioeconomic drivers of the sulfur dioxide (SO2), nitrogen dioxide (NO2), and particulate matter (PM2.5) concentration changes in Ulaanbaatar between 2005 and 2015 by applying the index decomposition analysis (IDA) method. Five socio-economic driving forces are considered in the decomposition analysis. All the driving forces contributed to more air pollution concentration changes in 2015 than in 2005, despite the decreasing trends of decomposition results for the period of 2010–2015. In general, economic growth, pollution intensity, and energy intensity significantly contributed to the changes of air pollutant concentrations, while energy structure and population growth had marginal effects. Finally, appropriate policy recommendations are proposed to the local government so that they can initiate feasible policies to effectively reduce air pollution, protect human health, and respond to climate change in Ulaanbaatar.


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