Decomposing Influencing Factors of Energy Consumption Changes in the Iranian Industrial Subsectors: The Comparison of Laspeyres and Divisia Methods

Due to an impressive increase in energy consumption, awareness about energy consumption process and factors influencing it, can help the policies of energy saving and efficient use of it. The industry sector as one of the link factors among other economic sectors in the community, has a determining role in the energy consumption and its efficiency .Accordingly, in this study by using two general methods of analysis of indicator (Laspeyers and Divisia), changes in energy consumption during the period 2000-2011 in the industrial sub-sectors of Iran are analyzed into three components: activity effect, structural effect and the effect of energy intensity. Comparison of methods of index analysis indicates that the results of analysis of the factors affecting changes in energy consumption by AMDI, LMDI and GFI methods are almost the same and they analyzed it completely. While there is a considerable difference between the results of Laspeyers index and real values and it leads to the creation of the remainder. The results suggest that in all four mentioned methods, the main cause of energy consumption increasing is changes of activity effect and in contrast, the most important factor of reducing energy consumption is changes in energy intensity and changes of structural effects have a little impact on energy consumption’s increasing.