Structural decomposition analysis applied to energy and emissions: Frameworks for monthly data

• Published in: Energy economics 2023-10, Vol.126, p.106977, Article 106977
• Main Authors: Su, Bin, Ang, B.W.
• Format: Article
• Language: English
• Subjects: Energy and emissions; Input-output analysis; Structural decomposition analysis; Temporal disaggregation; Temporal dynamics
• ISSN: 0140-9883
• DOI: 10.1016/j.eneco.2023.106977

Structural decomposition analysis (SDA) is a well-known approach to studying factors contributing to changes of an aggregate indicator in energy and emissions studies. Such studies normally rely on yearly data since input-output (I-O) tables are needed. With energy and economic transitions and seasonal factors, variations in renewable energy supply and in final demands of goods and services are becoming more prominent within a year in many countries. If monthly data are incorporated, some temporal dynamics within a year can be investigated in SDA application. In this paper, we propose an additive SDA framework and a multiplicative SDA framework that include monthly data to respectively reveal the drivers of temporal dynamics associated with energy/emissions embodiments and aggregate embodied intensity indicators. Based on China's 2018 and 2020 I-O tables, an empirical study is conducted using the proposed frameworks. The results obtained show that the increased granularity helps to reveal temporal dynamics mechanisms which will otherwise be overlooked. We discuss the findings and present areas for future research. •We propose the SDA frameworks using monthly data for energy/emission studies.•Additive SDA framework is proposed to study the drivers of monthly embodiments.•Multiplicative SDA framework is proposed to study the drivers of monthly AEI.•Empirical study shows the importance of temporal dynamics in energy/emission studies.