Changing energy intensity of economies in the world and its decomposition

This paper decomposes energy intensity change across countries into five components attributable to technological catch-up, technological progress and changes in capital–energy ratio, labor–energy ratio and output structure. It is found that (1) technological progress, capital accumulation and output structure change contributed to the decline of energy intensity from 1980 to 2010, (2) changes in labor–energy ratio drove up energy intensity, and (3) spatial and temporal heterogeneity existed regarding relative importance of the five components.

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