LMDI decomposition approach: A guide for implementation

Since it was first used by researchers to analyze industrial electricity consumption in the early 1980s, index decomposition analysis (IDA) has been widely adopted in energy and emission studies. Lately its use as the analytical component of accounting frameworks for tracking economy-wide energy efficiency trends has attracted considerable attention and interest among policy makers. The last comprehensive literature review of IDA was reported in 2000 which is some years back. After giving an update and presenting the key trends in the last 15 years, this study focuses on the implementation issues of the logarithmic mean Divisia index (LMDI) decomposition methods in view of their dominance in IDA in recent years. Eight LMDI models are presented and their origin, decomposition formulae, and strengths and weaknesses are summarized. Guidelines on the choice among these models are provided to assist users in implementation.

[1]  J. C. J. M. Bergh,et al.  Comparing structural decomposition analysis and index , 2003 .

[2]  B. W. Ang,et al.  Index decomposition analysis applied to CO2 emission studies , 2013 .

[3]  B. W. Ang,et al.  A new energy decomposition method: perfect in decomposition and consistent in aggregation , 2001 .

[4]  B. W. Ang,et al.  The LMDI approach to decomposition analysis: a practical guide , 2005 .

[5]  M. Thring.  World Energy Outlook , 1977 .

[6]  B. W. Ang,et al.  Properties and linkages of some index decomposition analysis methods , 2009 .

[7]  B. W. Ang,et al.  Factorizing changes in energy and environmental indicators through decomposition , 1998 .

[8]  Fabian Kesicki,et al.  Marginal Abatement Cost Curves: Combining Energy System Modelling and Decomposition Analysis , 2013, Environmental Modeling & Assessment.

[9]  Ashok Sarkar,et al.  Global Tracking Framework , 2013, ECE Energy Series.

[10]  Sun-Jin Yun,et al.  An analysis of long-term scenarios for the transition to renewable energy in the Korean electricity sector , 2013 .

[11]  Hidemichi Fujii,et al.  Decomposition of Toxic Chemical Substance Management in Three U.S. Manufacturing Sectors from 1991 to 2008 , 2013 .

[12]  Peng Zhou,et al.  Integrated scenarios of energy-related CO2 emissions in Ireland: A multi-sectoral analysis to 2020 , 2013 .

[13]  Robert Harmsen,et al.  Unravelling projected energy savings in 2020 of EU Member States using decomposition analyses , 2014 .

[14]  B. W. Ang,et al.  Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method , 1997 .

[15]  T. Kastner,et al.  Global changes in diets and the consequences for land requirements for food , 2012, Proceedings of the National Academy of Sciences.

[16]  Bin Chen,et al.  Driving force analysis of the agricultural water footprint in China based on the LMDI method. , 2014, Environmental science & technology.

[17]  B. W. Ang,et al.  Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix , 2007 .

[18]  B. W. Ang,et al.  Attribution of changes in Divisia real energy intensity index — An extension to index decomposition analysis , 2012 .

[19]  F. Lescaroux.  Industrial Energy Demand, a Forecasting Model Based on an Index Decomposition of Structural and Efficiency Effects , 2013 .

[20]  B. W. Ang,et al.  Decomposition analysis for policymaking in energy:: which is the preferred method? , 2004 .

[21]  Michael Schymura,et al.  Bigger Cakes with Less Ingredients? A Comparison of Material Use of the World Economy , 2014 .

[22]  Zeyi Jiang,et al.  Retrospective and prospective analysis of the trends of energy use in Chinese iron and steel industry , 2014 .

[23]  Laurence Eaton,et al.  Sources of corn for ethanol production in the United States: a decomposition analysis of the empirical data , 2011 .

[24]  B. W. Ang,et al.  Decomposition of aggregate energy intensity changes in two measures: ratio and difference , 2003 .

[25]  Ek Peng Chew,et al.  Perfect decomposition techniques in energy and environmental analysis , 2003 .

[26]  Hannah Förster,et al.  European Energy Efficiency and Decarbonization Strategies Beyond 2030 – A Sectoral Multi-Model Decomposition , 2013 .

[27]  Ricardo Martinez-Botas,et al.  Reducing China’s road transport sector CO2 emissions to 2050: Technologies, costs and decomposition analysis , 2015 .

[28]  B. W. Ang,et al.  A survey of index decomposition analysis in energy and environmental studies , 2000 .

[29]  Gale A. Boyd,et al.  Decomposition of changes in energy intensity: A comparison of the Divisia index and other methods☆ , 1988 .

[30]  B. W. Ang,et al.  Accounting frameworks for tracking energy efficiency trends , 2010 .