Comparison of energy intensities in European Union countries. Results of a structural decomposition analysis

Abstract

This work proposes an input–output structural decomposition analysis model to identify the sources of the differences in the energetic intensities of the European Union countries. Given an economic structure, a determined composition of the final demand and determined direct energy intensities by countries, the work studies to what extent these factors explain the difference in aggregate energy intensities that are observed for different European Union countries. On the basis of this information, indicators are constructed by sectors and countries that allow us to identify the role that each sector or country plays as an energy consumer. The results show that the aggregate/total energy differences in Europe are strongly influenced by the direct energy intensity effect and by the demand effect, without the different economic structures of the countries being an important factor in the explanation of these differences. The metallurgical and manufacturing products sectors are identified as the most intensive in the aggregate energy intensity.