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

Year 2022, Volume: 6 Issue: 2, 107 - 134, 15.10.2022

Aynur Yılmaz Ataman

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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