Structural decompositions of energy consumption, energy intensity, emissions and emission intensity - A sectoral perspective: empirical evidence from WIOD over 1995 to 2009

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