Energy Consumption and GHG Emissions in India:Analysis in Input-Output Framework

Energy based on fossil fuel consumption is very closely linked with environmental pollution in the form of CO2 emissions, a major element in global climate change. This paper analyses the changes in India’s energy consumption and CO2 emissions during the five-year period following the 1991 reforms, i.e. 1991/92 to 1996/97. The authors extend the energy Input-Output Structural Decomposition Analysis (SDA) to identify changes in energy consumption during this period. Results indicate that India’s energy consumption, which increased by 5.7 per cent a year in this period, was determined by a number of forces. The most significant role was played by the final demand structure followed by technical change and interaction between final demand structure and technical change. The CO2 emission trends reveal that the most dominating sectors have been petroleum products and electricity. The paper makes some broad policy recommendations for the future pattern of energy use in India.

In the present paper, we analyse the determinants of employment growth in V4 countries. While a standard approach relies on the parametric estimation of labour elasticity coefficients, we employ a novel approach based on structural decomposition analysis. This allows us to identify several determinants which mitigate the effects of economic growth on employment. We decompose the overall change in employment into the contribution of six factors: changes in labour productivity, changes in the import of intermediate products, changes in the structure of production, changes in the final demand structure by industries and by sectors, and a change in final demand volume. We show that besides the generally accepted influence of labour productivity growth on employment, other factors such as structural changes and changes in final demand played an important role in employment changes. These results shed some light on low labour elasticity in V4 countries and go beyond the simple labour productivity growth argument.

Final energy demand in the UK has remained relatively constant since the 1970s. However, most of the scenarios that model pathways to achieve the UK's net-zero greenhouse gas emissions by 2050 indicate that energy demand reduction (EDR) will be an important pillar of climate change mitigation. Despite this, the UK Government has no clearly defined strategy to reduce demand. This comparative analysis explores the role of EDR across twelve UK-based climate scenarios from four organisations that estimate changes in carbon emission and energy consumption from 2020 to 2050. We focus on changes in final demand across the economy, assessing the scale of ambition and the implications for the rest of the energy system in the context of net-zero. All the pathways explored achieve reductions of at least 32.8% in total final energy demand from 2020 to 2050, suggesting that this is the minimum level of demand reduction required to achieve the development and rollout of the supply side technologies necessary to decarbonise the energy system. Reductions in total final demand of up to 52% are demonstrated. We find that pathways with higher levels of EDR mitigate against technological challenges, such as scaling up renewable energy capacities, are less reliant on carbon-dioxide removal technologies and require less investment – but are characterised by higher levels of social change.

India's economic reform was initiated in mid 1991 by the Government of India. Some strategies for energy sector were adopted. This paper investigates the pattern of energy consumption changes during reform period i.e., 1991-92 to 1996-97and various factors responsible for these changes based on Input/Output model. Here we develop a Structural Decomposition Analysis. Six different factors have been identified here: (i) Technical changes, (ii) Changes in final demand structure, (iii) Changes in the interaction term of technical changes and final demand structure, (iv) Changes in energy exports, (v) Changes in energy imports, (vi) Changes in energy change in stock. Then we separate technical changes and final demand structure again, which explain the energy consumption changes. The most significant role as revealed from the empirical results have been played by the final demand structure, technical changes and interaction term between final demand structure and technical changes.

Analysis of carbon emission mechanism based on regional perspectives is an important research method capable of achieving energy savings and emission reductions. Xinjiang, an important Chinese energy production base, is currently going through a period of strategic opportunities for rapid development. Ensuring stable socio-economic development while achieving energy savings and meeting emission reductions targets, is the key issue currently facing the region. This paper is based on the input-output theory, and conducts a structural decomposition analysis on the factors affecting energy-related carbon emissions in Xinjiang from 1997 to 2007; this analysis employs a hybrid input-output analysis framework of “energy - economy - carbon emissions”. (1) Xinjiang’s carbon emissions from energy consumption increased from 20.70 million tons in 1997 to 40.34 million tons in 2007; carbon emissions growth was mainly concentrated in the production and processing of energy resources, the mining of mineral resources, and the processing industry. (2) The analysis of the direct effects of the influencing factors on carbon emissions showed that the change in per capita GDP, the final demand structure, the population scale, and the production structure were the important factors causing an increase in carbon emissions, while the decrease in carbon emission intensity during this period was the important influencing factor in stopping the growth of carbon emissions. This showed that while the sizes of Xinjiang’s economy and population were growing, the economic structure had not been effectively optimized and the production technology had not been efficiently improved, resulting in a rapid growth of carbon emissions from energy consumption. (3) The analysis of the indirect effects of the influencing factors of carbon emission showed that the inter-provincial export, fixed capital formation, and the consumption by urban residents had significant influence on the changes in carbon emissions from energy consumption in Xinjiang. (4) The growth of investments in fixed assets of carbon intensive industry sectors, in addition to the growth of inter-provincial exports of energy resource products, makes the transfer effect of inter-provincial “embodied carbon” very significant.

The aim of this study is decomposition of the changes in energy consumption with emphasizing the structural changes in Iran during 2001-2011 using Input- Output Structural Decomposition Analysis (I_O SDA). Structural changes in this study represent the changes in structure of intermediate input in sectors and also changes in structure of final demand categories. Structural changes in intermediate inputs decomposed into intermediate input substitution in sectors and changes in direct backward linkages. Structural changes in final demand represent the changes of the share of each sector in total final demand categories. The results showed that energy coefficients helped to reduce energy use and final demand changes and technological changes (structural changes in intermediate inputs) caused to increase of energy use. The final demand had the main contribution on increase of energy use (44186.26 BGJ). Among the final demand components, increase in level of investment and household’s consumption was the main drivers of energy use increment

This paper explores the anatomy of Danish energy consumption and emissions of carbon dioxide (CO2), sulphur dioxide (SO,) and nitrogen oxides (NO,). Changes in emissions between 1966 and 1988 were investigated using input-output structural decomposition analysis. Production-based emissions have undergone substantially greater changes than have private consumption emissions, and the increased level of final demand explains most of this development. Although the level of CO 2 emissions has risen proportionally to energy consumption, the NO, emissions level has increased relatively more and the SO, emissions level has declined considerably. There are several reasons for these developments, the main reason being changes in fuel mix in the energy-supply sector. Energy conservation has been implemented throughout the economy–with the important exception of transportation fuel. In most sectors and all demand categories, there has been a shift towards less energy-intensive composition of inputs and commodities. Both effects have considerably reduced emissions, but this has been outweighed by economic growth, which has required energy for further production throughout the whole period studied.

Over time, with changes in the structure of the economy, economic activities will expand and these structural changes are the prerequisite for development. For the Indian economy, it was in mid 1991 when the process of adjustment and reforms was initiated with greater zeal. The present study analyzes the sources of output growth from 1993–1994 to 2006–2007. The time point falls in the period of the ongoing reforms, and the period since then is long enough to attempt an assessment. The method of demand-side decomposition of output growth within an input–output framework has been utilized. The output growth over the study period has been divided into four components, viz, growth in output due to average growth of final demand, growth in output due to changes in the composition of the final demand, growth in output due to changes in input–output coefficients, and growth in output due to interaction of the change in final demand and change in technology.

E nergy consumption has increased significantly in Iran during the recent decades. In this study, an inter-industrial model has been improved to investigate the sources of the changes in the energy consumption of the country. The input-output tables of Iran for the years 1988 and 2001 have been employed as the database of the model. The innovation of this research allows the researchers to study the sources of changes in energy consumption more specifically. It concerns decomposing the effect of changes in economic structure into input substitution, and backward linkage effects. The results show that the level of final demand, input substitution, and backward linkage effects lead to an increase in energy consumption in the country. In contrast, the energy intensity of products, the structural composition of the final demand, and the categorical composition of the final demand have reducing effects on energy consumption.

Over the last decades, Morocco has been facing increasingly severe water scarcity. To quantify water use in Morocco, we refer to the water footprint (WF) concept, including both direct and indirect water use. WF considered covers internal WF and exported virtual water (VW). We used the input-output structural decomposition analysis (SDA) to quantitatively analyze the drivers of changes in Morocco’s sectoral WF from 1995 to 2015. The considered mechanisms governing WF changes are the technological, economic system efficiency, and structural effects. The WF growth experienced in Morocco primarily resulted from final demand changes. The technological effect acted as an additional increase factor. Nevertheless, the economic system efficiency effect contributed to the water conservation process. Unfortunately, it was not sufficient to reverse the expansion of Morocco’s WF resulted from other driving factors. Agriculture is the dominant economic sector in WF changes, regardless of any driving factor and any period considered. The study provides insight into Morocco’s water policy limits and helps develop policies towards sustainable water resources planning and management. That is by suggesting that final demand structure adjustment and technological innovation in the agricultural sector should be at the center of Morocco’s strategies in addressing water scarcity.

This paper employs two-stage input–output structural decomposition analysis (SDA) to identify the factors responsible for changes in Japan’s \(\hbox {CO}_{2}\) emissions for two periods: 1995–2000 and 2000–2005. First, the study decomposes the total change in \(\hbox {CO}_{2}\) emissions for each period to obtain the contribution of change in \(\hbox {CO}_{2}\) emissions per unit output \((\hbox {CO}_{2}\) emissions coefficient), change in technology (technology effect), and change in final demand. The study observed from the first-stage decomposition that emissions coefficient and final demand drive the change in the first period (1995–2000) while the technology effect drives the change in the second period (2000–2005). The high contribution of the technology effect is driven by activities of iron and steel; coke, refined petroleum and gas; road transportation; and electricity sectors. Having observed the trend of the technology effect across the two periods, the study carried out a second-stage decomposition on technology effect in the second period to examine the contribution of each sector and observed that chemical and pharmaceuticals; iron and steel; road transportation; and construction sectors are mainly responsible. In conclusion, improvement in technical efficiency especially at the industrial process level of each industry will help Japan achieve greater level of \(\hbox {CO}_{2}\) emissions reduction.

Sensing global changes in local patterns of energy consumption in cities during the early stages of the COVID-19 pandemic

The aim of this study is of the effect of structural changes in higher education on changes of output in Sistan and Baluchestan Province using structural decomposition analysis (SDA). The input-output tables of this region for the period 2006-2011 have been employed as the database of the model. The structural changes were decomposed into two factors: changes in share of specific sector in total intermediate inputs that were used by higher education sector (input substitution effect) and changes in total intermediate inputs that were used by this sector (backward linkage effect). The changes in final demand is also decomposed to share of higher education in total final demand of region (structure of final demand) and total final demand of this sector (level of final demand). The results at regional level show that the change in level of final demand in the higher education sector is the main source of increasing in total output of the region. Changes in input substitution, backward linkage, and composition of final demand in this sector lead to a decrease in regional output.

Drivers of carbon emission intensity change in China

Industrial CO 2 emissions from energy use in Korea: A structural decomposition analysis