Decomposition of CO<SUB align=right><SMALL>2</SMALL></SUB> intensities from use of energy: case of Thai industry between 1981 and 2000

Industry consumes about 30% of total final energy demand in Thailand and is a major source of CO<SUB align="right"><SMALL>2</SMALL></SUB> emission from energy use. CO<SUB align="right"><SMALL>2</SMALL></SUB> emission from the industrial sector has increased as a result of high growth in energy demand. This paper analyses the changes in CO<SUB align="right"><SMALL>2</SMALL></SUB> intensity arising from energy use over a period of 20 years (1981 to 2000) and identifies the factors affecting the changes using Log-mean Divisia decomposition technique. The analysis is carried out in four phases and the results indicate that although CO<SUB align="right"><SMALL>2</SMALL></SUB> emission has more than tripled, the CO<SUB align="right"><SMALL>2</SMALL></SUB> intensity has marginally declined if renewable energies are considered as carbon non-neutral (marginally increased in the other case). An increase in energy intensity and a switchover to carbon intensive fuel mix were two major factors affecting CO<SUB align="right"><SMALL>2</SMALL></SUB> intensity adversely. During the economic crisis of 1996–1998 and its aftermath, CO<SUB align="right"><SMALL>2</SMALL></SUB> intensity of industrial energy use declined marginally.