Are labour productivity and residential living standards drivers of the energy consumption changes?

• Published in: Energy economics 2018-08, Vol.74, p.746-756
• Main Authors: Román-Collado, Rocío, Colinet, María José
• Format: Article
• Language: English
• Subjects: Change agents; Energy consumption; Energy economics; Energy efficiency; Energy intensity; Energy measurement; Households; Index decomposition analysis; Labor productivity; Labour productivity; Macroeconomics; Private transport; Productivity; Residential consumption; Residential energy; Spain; Standard of living; Transport
• ISSN: 0140-9883; 1873-6181
• DOI: 10.1016/j.eneco.2018.07.030

The aim of this paper is to analyse the effects that explain the final energy consumption changes in Spain in the period 2000–2013 using the LMDI-I method, distinguishing between the final energy consumption by the productive sectors and households (residential and private transport). The consumption changes in the productive sectors and households have been decomposed into five effects. These are the intensity, the inverse of labour productivity, the structural, the standard of living and the activity effects. The energy intensity effect has been defined from a physical perspective in order to eliminate the possible effects brought about by causes unconnected with the energy process (the evolution of the market, the variation of productivity, etc.) that usually affect the energy intensity indicator when measured from a macroeconomic perspective. The results show that the activity, the living standard of private transport and sectoral intensity effect are those that contribute most to the increase of energy consumption in this period, whereas the inverse of labour productivity, the structural and the intensity effects in private transport contribute to reducing the final energy consumption. The results obtained for the sectoral intensity (except for non-private transport) and the residential intensity effects lead us to recommend that it is necessary to focus on a more effective and intensive policy in the matter of energy efficiency in Spain than that developed in the period of analysis. •The activity effect is the main driver of the energy consumption change.•Private transport intensity and labour productivity become inhibitor effects.•Private transport and residential standard of living are driver effects.•Sectoral and residential intensity should receive more policy attention.