Decomposition Analysis Flashcards
What is a decomposition analysis
The disaggregation of a number into >2 components
Disaggregation of energy consumption
into volume/activity and intensity effect
Disaggregation of CO2 emissions into
energy demand and carbon intensity
Three reasons for decomposition
- getting insights in past developments
- understanding scenario outcomes
- supporting policy analysis (trough top-down analysis)
Energy consumption can be disaggregated in three effects
- Volume (V)
- Structure (S)
- Energy savings/intensity/efficiency (I)
CO2 emissions can be disaggregated in 5 effects
- Volume (V)
- Structure (S)
- Energy intensity (I)
- Fuel mix (EF)
- Emission factor (EF)
2 factor decomposition methods
- successively
- one-by-one
Successively approach
Decompose: b-a
Look at Delta V with I constant. Thus Delta I = b-a- Detla V
Do also for Delta I with V constant.
One-by-One approach
- Determine Delta V with constant I
- Determine Delta I with constant V
- Add up Delta V and Delta I.
-Leaves a residual and is therefore not the same as b-a
2 factor decomposition without residual
Laspeyres method
When to use Laspeyres method
With 2 factors since it is easy to communicate and explains the factor you want to decompose.
-Does work for 3 or more factors but gets really complicated
Laspeyres method
½ (V0 +Vt) x ΔCI + ½ (CI0+CI1) x ΔV
Advantage of LMD appraoch
no residuals
What does LMD stand for
Log Mean Divisia
Logarithmic mean formula
(a-b)/ln(a/b)
