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Comparing ODEX with LMDI to measure energy efficiency trends

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Abstract

This paper examines the effectiveness of ODEX in measuring energy efficiency improvements by comparing it to an alternative proxy for energy efficiency, namely an index of energy intensity with structural effects removed, calculated using the Logarithmic Mean Divisia (LMDI) decomposition technique. Both approaches are subjected to tests to determine their accuracy, using the industry sector in Ireland as a case study. While the LMDI performs better than ODEX, the results yielded by both in their chained forms are influenced by fluctuations in the data used to calculate them. A method is proposed to quantify the effects of fluctuations on the results. For Irish industry data, these effects are found to be significant. It is recommended that the effects of data fluctuations be evaluated when calculating a chained top-down indicator to measure energy efficiency.

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Acknowledgements

The authors wish to acknowledge the helpful input from Wolfgang Eichhammer and Martin Howley and the feedback and suggestions from Bruno Lapillonne. The authors also acknowledge the funding support for this research by Sustainable Energy Ireland. This research builds on work presented by the authors at the ECEEE Summer Study 2009.

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Authors and Affiliations

  1. Sustainable Energy Research Group, Department of Civil & Environmental Engineering, University College Cork, Cork, Ireland

    Caiman J. Cahill & Brian P. Ó Gallachóir

  2. Environmental Research Institute, University College Cork, Lee Road, Cork, Ireland

    Caiman J. Cahill & Brian P. Ó Gallachóir

  3. United Nations Industrial Development Organization (UNIDO), Vienna International Center, D1579, PO Box 300, 1400, Vienna, Austria

    Morgan Bazilian

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  1. Caiman J. Cahill
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  2. Morgan Bazilian
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  3. Brian P. Ó Gallachóir
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Correspondence to Caiman J. Cahill.

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Cahill, C.J., Bazilian, M. & Ó Gallachóir, B.P. Comparing ODEX with LMDI to measure energy efficiency trends. Energy Efficiency 3, 317–329 (2010). https://doi.org/10.1007/s12053-009-9075-5

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  • DOI: https://doi.org/10.1007/s12053-009-9075-5

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