Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran

Iran economy has high energy intensity and CO2 emission compared to other peer countries. This study adopts the Logarithmic Mean Divisia Index (LMDI-I) method to decompose the total energy intensity changes Δ(E/GDP) of the Iranian economy by considering inter-fuel substitution impacts of the economi...

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Autores principales:	Vahid Mohammadi, Asghar Mir Mohammad Tabar, Nader Dashti
Formato:	article
Lenguaje:	EN
Publicado:	Elsevier 2022
Materias:	C43 A10 Q43 Q42 Energy industries. Energy policy. Fuel trade HD9502-9502.5
Acceso en línea:	https://doaj.org/article/7964f9076b67429eb217aad55ab37890
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spelling	oai:doaj.org-article:7964f9076b67429eb217aad55ab378902021-12-02T05:01:28ZInter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran2211-467X10.1016/j.esr.2021.100773https://doaj.org/article/7964f9076b67429eb217aad55ab378902022-01-01T00:00:00Zhttp://www.sciencedirect.com/science/article/pii/S2211467X21001577https://doaj.org/toc/2211-467XIran economy has high energy intensity and CO2 emission compared to other peer countries. This study adopts the Logarithmic Mean Divisia Index (LMDI-I) method to decompose the total energy intensity changes Δ(E/GDP) of the Iranian economy by considering inter-fuel substitution impacts of the economic sectors over the period of 2004–2017. Results show that the total energy intensity of Iran's economy increased by 43.59 barrels of oil equivalent to IRR 1000 (Iranian Rial at a constant price in 2011). Furthermore, results indicate that while inter-sector structural change, per capita GDP impact, and sectoral energy intensity impact lead to an increase in total energy intensity, household energy intensity impact leads to a decrease in total energy intensity during the research period. Extended findings from decomposition analysis demonstrate that household, services, and agriculture sectors have decreasing impact, while industry, power plant and transportation sectors have increasing impact on Δ(E⁄GDP). In addition, removing the consumption of kerosene in household sector and reducing its share in most economic sectors has caused decline, whereas high consumption of fuel oil, gasoline and gasoil compared to other energy carriers, has led to an increase in total energy intensity. As such, it is concluded that substituting various types of fuels in economic sectors couldn't reduce energy intensity. Besides, serious revisions are needed in the energy policies and energy efficiency programs. It is recommended that non-price policies along with price-based energy policies be implemented to reduce energy intensity and CO2 emission.Vahid MohammadiAsghar Mir Mohammad TabarNader DashtiElsevierarticleC43A10Q43Q42Energy industries. Energy policy. Fuel tradeHD9502-9502.5ENEnergy Strategy Reviews, Vol 39, Iss , Pp 100773- (2022)
institution	DOAJ
collection	DOAJ
language	EN
topic	C43 A10 Q43 Q42 Energy industries. Energy policy. Fuel trade HD9502-9502.5
spellingShingle	C43 A10 Q43 Q42 Energy industries. Energy policy. Fuel trade HD9502-9502.5 Vahid Mohammadi Asghar Mir Mohammad Tabar Nader Dashti Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
description	Iran economy has high energy intensity and CO2 emission compared to other peer countries. This study adopts the Logarithmic Mean Divisia Index (LMDI-I) method to decompose the total energy intensity changes Δ(E/GDP) of the Iranian economy by considering inter-fuel substitution impacts of the economic sectors over the period of 2004–2017. Results show that the total energy intensity of Iran's economy increased by 43.59 barrels of oil equivalent to IRR 1000 (Iranian Rial at a constant price in 2011). Furthermore, results indicate that while inter-sector structural change, per capita GDP impact, and sectoral energy intensity impact lead to an increase in total energy intensity, household energy intensity impact leads to a decrease in total energy intensity during the research period. Extended findings from decomposition analysis demonstrate that household, services, and agriculture sectors have decreasing impact, while industry, power plant and transportation sectors have increasing impact on Δ(E⁄GDP). In addition, removing the consumption of kerosene in household sector and reducing its share in most economic sectors has caused decline, whereas high consumption of fuel oil, gasoline and gasoil compared to other energy carriers, has led to an increase in total energy intensity. As such, it is concluded that substituting various types of fuels in economic sectors couldn't reduce energy intensity. Besides, serious revisions are needed in the energy policies and energy efficiency programs. It is recommended that non-price policies along with price-based energy policies be implemented to reduce energy intensity and CO2 emission.
format	article
author	Vahid Mohammadi Asghar Mir Mohammad Tabar Nader Dashti
author_facet	Vahid Mohammadi Asghar Mir Mohammad Tabar Nader Dashti
author_sort	Vahid Mohammadi
title	Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
title_short	Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
title_full	Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
title_fullStr	Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
title_full_unstemmed	Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran
title_sort	inter-fuel substitution and decomposition analysis of energy intensity: empirical evidence from iran
publisher	Elsevier
publishDate	2022
url	https://doaj.org/article/7964f9076b67429eb217aad55ab37890
work_keys_str_mv	AT vahidmohammadi interfuelsubstitutionanddecompositionanalysisofenergyintensityempiricalevidencefromiran AT asgharmirmohammadtabar interfuelsubstitutionanddecompositionanalysisofenergyintensityempiricalevidencefromiran AT naderdashti interfuelsubstitutionanddecompositionanalysisofenergyintensityempiricalevidencefromiran
_version_	1718400836951867392

Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran

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