Using more than 68 million data points from the newly introduced World
Input-Output Database (WIOD) over 1995 to 2009, this study investigates
the historical dynamics of energy consumption, aggregate energy
intensity, total emissions and total emission intensity at sectoral
level by decomposing their relative changes in the input-output
framework into five influencing factors: intensity effect,
inter-industry structural effect, trade effect in intermediate inputs,
structural change effect in final demand and total final demand effect.
It identifies crucial empirical patterns that support UNIDO’s ISID
initiative: increases in energy consumption and total emissions at
sectoral level driven by economic growth can be partially or even
largely offset by the efficiency technology related intensity effect and
the intensity effect within sectors contributes the most to reductions
in aggregate energy intensity and total emission intensity.
Keywords: Structural decomposition, input-output model, energy, emissions, sustainable development
JEL Classification: C67, O13, R15