Analysis and decomposition of energy consumption and energy intensity in Iran’s industrial sectors

One of the factors influencing the growth and development of any country depends on the development of its industries. This effective portion is one of the nationchr('39')s largest energy consumers. Study of energy consumption and energy intensity trends in various sectors is a Major step in the planning and policy-making in the energy sector and opens a wide horizon in front of policymakers in these issues. One of the methods used in this context is the analysis method. In this study, analysis of energy consumption and energy intensity changes have been investigated by multiplicative form of the Divisia index and Following the separation in different industries and sectors over a period of 16 years (90-75). The results showed that 120 peacent of the increase in consumption is due to the increase in industrial production. Structural effect caused 26 percent increase on energy consumption and intensity effect caused 30 percent reduction on it. Moreover, a reduction of 12 percent was observed in energy intensity of industry by energy intensity decomposition in industry between 1375 and 1390. The main reason for this decline is due to improvement in efficiency and technological conditions. Although the structural effect caused a considerable increase in Energy intensity this improvement in technical situation could made it up.