Please use this identifier to cite or link to this item:
https://scholarbank.nus.edu.sg/handle/10635/63148
Title: | Handling zero values in the logarithmic mean Divisia index decomposition approach | Authors: | Ang, B.W. Liu, N. |
Keywords: | Decomposition analysis LMDI Zero values |
Issue Date: | Jan-2007 | Citation: | Ang, B.W., Liu, N. (2007-01). Handling zero values in the logarithmic mean Divisia index decomposition approach. Energy Policy 35 (1) : 238-246. ScholarBank@NUS Repository. | Abstract: | The Logarithmic Mean Divisia Index (LMDI) decomposition approach has many desirable properties. It has been recommended by Ang [2004a. Decomposition analysis for policymaking in energy: which is the preferred methods? Energy Policy 32, 1131-1139] for adoption in energy and energy-related environmental index decomposition analysis (IDA). A complication associated with this approach is the treatment of zero values in the data set. Several studies show that replacing the zero values with a small number gives converging results. In a recent paper, Wood and Lenzen [Zero-value problems of the logarithmic mean Divisia index decomposition method. Energy Policy, in press] argue that this strategy is not necessarily robust and recommend using the analytical limits proposed in Ang et al. [1998. Factorizing changes in energy and environmental indicators through decomposition. Energy 23, 489-495]. We compare these two strategies and extend earlier works by generalizing the analytical limits of LMDI. © 2005 Elsevier Ltd. All rights reserved. | Source Title: | Energy Policy | URI: | http://scholarbank.nus.edu.sg/handle/10635/63148 | ISSN: | 03014215 |
Appears in Collections: | Staff Publications |
Show full item record
Files in This Item:
There are no files associated with this item.
Google ScholarTM
Check
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.