Decomposition analysis of Changes in Energy Consumption in Iran: Structural Decomposition Analysis

Document Type : Research Article


University of Sistan and Baluchestan, Zahedan, Iran


The aim of this study is decomposition of the changes in energy consumption with emphasizing the structural changes in Iran during 2001-2011 using Input- Output Structural Decomposition Analysis (I_O SDA). Structural changes in this study represent the changes in structure of intermediate input in sectors and also changes in structure of final demand categories. Structural changes in intermediate inputs decomposed into intermediate input substitution in sectors and changes in direct backward linkages. Structural changes in final demand represent the changes of the share of each sector in total final demand categories. The results showed that energy coefficients helped to reduce energy use and final demand changes and technological changes (structural changes in intermediate inputs) caused to increase of energy use. The final demand had the main contribution on increase of energy use (44186.26 BGJ). Among the final demand components, increase in level of investment and household’s consumption was the main drivers of energy use increment


Alcantara, V., Del Río, P., and Hernandez, F. (2010). Structural analysis of electricity consumption by productive sectors: The Spanish case. Energy, 35(4), 2088-98. 
Ang, B.W., Mu, A.R., and Zhou, P. (2010). Accounting frameworks for tracking energy efficiency trends. Energy Economics, 32 (5), 1209–1219.
Chai, J., Guo, J.-E., Wang, S.-Y., and Lai, K.K., (2009). Why does energy intensity fluctuate in China?. Energy Policy, 37(12), 5717–5731.
Collado, R. M., and Colinet, M. J. (2018). Is energy efficiency a driver or an inhibitor of energy consumption changes in Spain? Two decomposition approaches. Energy Policy, 115, 409–417. 
Dietzenbacher, E., Los, B. (1998). Structural decomposition techniques: sense and sensitivity. Economic System Research, 10(4), 307-323.
Guevara, Z., and Rodrigues, F.D. (2016). Structural transitions and energy use: a decomposition analysis of Portugal 1995–2010. Economic System Research, 28, 202–223.
Henriques, S.T. (2011). Energy Transitions, Economic Growth and Structural Change: Portugal in a Long-Run Comparative Perspective. Lund Studies in Economic History. Vol. 54.
Jahangard, E., and Rashidizadeh, M. (2011). Analysis of Energy Intensity Change in Iranian Economic sectors with SDA Approach. Journal of Applied Economics, 2(3), 67-91. (In Persian)
Jahangard, E., Golshani, V., Milani, A., and Ghafarzadeh, H. (2017). Energy Consumption Analysis in Iran (A Static Comparative Analysis with the SDA Approach). Journal of Applied Economics, 7(20), 1-20. (In Persian)
Kagawa, S. and Inamura, H. (2001). A structural decomposition of energy consumption based on a hybrid rectangular input-output framework: Japan's case. Economic System Research, 13, 33-63.
Lan, J., Malik, A., Lenzen, M., Mcbain, D., and Kanemoto, K., (2016). A structural decomposition analysis of global energy footprints. Applied Energy, 163, 436–451.
Llop, M. (2017). Changes in energy output in a regional economy: A structural decomposition analysis. Energy, 128, 145-151.
Miller, R.E., and Blair, P.D. (2009). Input–Output Analysis: Foundations and Extensions. second ed. Cambridge University Press, Cambridge.
Reddy, B. S., and Ray, B. K. (2010). Decomposition of energy consumption and energy intensity in Indian manufacturing industries. Energy for Sustainable Development, 14, 35–47. 
Sharify N. and Banihashemi T. (2013). Factors Affecting Energy Consumption in Households in Iran. MSc dissertation, Faculty of Administrative Sciences and Economics, University of Mazandaran.
Sharify, N. and Hosseinzadeh, R. (2015). Sources of Change in Energy Consumption in Iran: A Structural Decomposition Analysis. Iranian economic review, 19(3), 325-339.
Sheinbaum-Pardo, C., Mora-Pérez, S., and Robles-Morales, G., (2012). Decomposition of energy consumption and CO2 emissions in Mexican manufacturing industries: Trends between 1990 and 2008. Energy for Sustainable Development, 16, 57–67.
Su, B., and Ang, B.W. (2015). Multiplicative decomposition of aggregate carbon intensity change using input–output analysis. Applied Energy, 154, 13–20.
Su, B., and Ang, B. W. (2012). Structural decomposition analysis applied to energy and emissions: Some methodological developments. Energy Economics, 34, 177–188.
Su, B., and Ang, B. W. (2017). Multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities. Energy Economics, 65, 137–147.
Supasa, Th., Hsiau, S. S., Lin, S. M., Wongsapai, W., Chang, K. F., and Wu, J. J. (2017). Sustainable energy and CO2 reduction policy in Thailand: An input–output approach from production- and consumption-based perspectives. Energy for Sustainable Development, 41, 36–48.
Wang, H., Ang, B.W., and Su, B., (2017). Assessing drivers of economy-wide energy use and emissions: IDA versus SDA. Energy Policy, 107, 585–599.
Xie, S.C., (2014). The driving forces of China's energy use from 1992 to 2010: An empirical study of input–output and structural decomposition analysis. Energy Policy, 73, 401–415.
Zhao, N., Xu, L., Malik, A., Song, X., and Wang, Y. (2018). Inter-provincial trade driving energy consumption in China. Resources, Conservation & Recycling, 134, 329–335.