Energy consumption decomposition analysis using European official statistics: Methodology and input data

Abstract

Deciphering energy efficiency is a critical component for the sustainability and energy policies of the European Union (EU) and its Member States. Decomposition analysis is a key method that helps distinguish real energy efficiency gains from other external factors. This article presents a decomposition analysis method using official EU statistics, its results, and associated limitations. Although separating structural changes and activity levels from energy efficiency poses a challenge, an adapted Logarithmic Mean Divisia Index (LMDI) method was utilised to isolate and highlight energy efficiency. This article outlines this method and how the European official statistics were exploited. Firstly, it examines the factors affecting energy consumption in various sectors within EU-27. Secondly, it examines the factors affecting energy consumption in various sectors. In doing so, it also addresses potential obstacles in data collection, and presents improvements to the LMDI analysis. The findings in this study make a substantial contribution to the fields of national statistics, methodological applications, and energy data analysis in the context of the EU’s energy policies.