Energy Intensity Decomposition Analysis in Iranian Enegy-Intensive Industries Using the Logarithmic Mean Divisia Index with Emphasis on the Chain-Linked and Period-Wise Approach

The measurement and assessment of energy intensity of economic sectors, especially in developing countries, compose a foremost objective of contemporary energy policy. The Iranian industry sector has more than 25 percent of gross domestic products which has important role in determining effective factors on enrgy intensity. In this study the Logarithmic Mean Divisia Index (LMDI) was applied for energy intensity decomposition analysis with additive and multiplicative method introduction for Period of 2004-2011. The results show that energy intensity in the mentioned period had increased in industry sector. Additionally, intensity effect and activity effect have the most shares in energy intensity docomposition respectively. Also, the results indicate that chain-linked decomposition versus period-wise one has more actuall and reliable results applying for policymakers.