INDEX DECOMPOSITION ANALYSIS AND ENERGY CONSUMPTION OF TURKEY: 2000-2014

Abstract

Index decomposition analysis (IDA) has been one of the important tools in energy and environmental studies in identifying the level of contribution of the driving factors of a change in an aggregate of interest during a time period or across different units such as countries or regions. Aiming to be an informative source for further studies conducted with this methodology, this paper provides a general review covering its historical development and mathematical formula. To see the contribution of economic growth, sectoral composition, and energy intensity to the energy consumption change in Turkey between 2000-2014, based on the energy and socio-economic accounts of the WIOD LMDI-I method is used as it is the most preferred IDA method due to its simplicity and ability to provide perfect decomposition.

Keywords

• Decomposition Analysis
• Divisia Index
• LMDI
• Energy Consumption
• Turkey

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