Structural decomposition analysis applied to energy and emissions: Some methodological developments

The only comprehensive study comparing structural decomposition analysis (SDA) and index decomposition analysis (IDA) was conducted around 2000. There have since been new developments in both techniques in energy and emission studies. These developments have been studied systematically for IDA but similar studies for SDA are lacking. In this paper, we fill the gap by examining the new methodological developments in SDA. A new development is a shift towards using decomposition methods that are ideal. We compare four such SDA methods analytically and empirically through decomposing changes in China's CO2 emissions. We then provide guidelines on method selection. Finally, we discuss the similarities and differences between SDA and IDA based on the latest available information.