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LMDI decomposition analysis of energy consumption of Turkish manufacturing industry: 2005–2014

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Abstract

Decomposition analysis is a proven approach to highlight the trends in energy economics and to clarify the changing factors in energy consumption. In Turkey, industrial sector is one of the major drivers of economy, which accounts for 32% of the final energy consumption. This paper uses the logarithmic mean Divisia index (LMDI) to divide the total energy consumption growth of ten Turkish manufacturing industries into activity effect, structure effect, and intensity effect in the period from 2005 to 2014. Manufacturing subsectors consist of (a) food products, beverages, and tobacco, (b) textile and textile products, (c) wood and wood products, (d) pulp, paper, and paper products; publishing and printing, (e) chemicals, chemical products, and man-made fibers, (f) rubber and plastic products, (g) non-metallic mineral products, (h) primary metals, (i) equipment goods, and (j) other manufacturing. Energy consumption of total manufacturing industry rose from 25,013 ktoe to 27,590 ktoe within the period. The subsector (a), (b), (c), (d), (e), (f), and (i) analyses results reveal that the activity effect has significant contribution to energy consumption, while structure and intensity effects are negligible. On the other hand, for the energy-intensive industries, influence of structure and intensity effects has observed simultaneously. The results also show that intensity and activity effects follow similar trends. Energy intensity of manufacturing industry has followed a slightly decreasing route (0.288 ktoe/$2005 in 2005 and 0.219 ktoe/$2005 in 2014) in the period, which is an indicative of contribution of activity changes, energy efficient technologies, and other energy efficiency efforts.

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Correspondence to Zuhal Akyürek.

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Akyürek, Z. LMDI decomposition analysis of energy consumption of Turkish manufacturing industry: 2005–2014. Energy Efficiency (2020). https://doi.org/10.1007/s12053-020-09846-8

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Keywords

  • Energy consumption
  • Energy efficiency
  • Energy intensity
  • Decomposition analysis
  • Log mean Divisia index
  • Turkish manufacturing industry