Multi-country comparisons of energy performance: The index decomposition analysis approach

Index decomposition analysis (IDA) is a popular tool for studying changes in energy consumption over time in a country or region. This specific application of IDA, which may be called temporal decomposition analysis, has been extended by researchers and analysts to study variations in energy consumption or energy efficiency between countries or regions, i.e. spatial decomposition analysis. In spatial decomposition analysis, the main objective is often to understand the relative contributions of overall activity level, activity structure, and energy intensity in explaining differences in total energy consumption between two countries or regions. We review the literature of spatial decomposition analysis, investigate the methodological issues, and propose a spatial decomposition analysis framework for multi-region comparisons. A key feature of the proposed framework is that it passes the circularity test and provides consistent results for multi-region comparisons. A case study in which 30 regions in China are compared and ranked based on their performance in energy consumption is presented.