Energy efficiency monitoring and index decomposition analysis

Abstract

As a response to the urgent call for a sound decomposition method and a standard scheme in energy efficiency monitoring and index decomposition analysis, this thesis investigates the evolvement of energy efficiency monitoring and some methodological issues of decomposition and aggregation analysis applied to energy. Regarding the methodological issues, we focus on Logarithmic Mean Divisia Index (LMDI) method, refine its procedure in handling special values in the dataset, and investigate its property of consistency in aggregation. Through AHP analysis, we compare popular decomposition methods and conclude that LMDI I is the best. About the development of energy efficiency monitoring, we perform two literature reviews, one on country practice and the other on past empirical results, and find there are great variations as well as similarities in the sectoral and economy-wide analysis. Summarizing the two lines of work, we propose a two-step analysis based on LMDI I as a standard scheme in performing economy-wide energy efficiency evaluation.