Analysis of Sector Based Energy Consumption Rates of OECD Countries with Louvain Clustering

Abstract

This study examines the shares of sectors (agriculture, services, industry, transportation and other sectors) in total energy consumption in OECD countries for the period 2011-2020 using Louvain cluster analysis. Energy consumption is an important development indicator and provides important information about the development of countries. In particular, the analysis of the shares of energy consumption of main sectors such as agriculture, services, industry and transport sectors can provide important information about a country's economic diversity, level of industrialization and economic focus. Cluster analysis can provide important insights by identifying countries with similar energy consumption patterns. Louvain cluster analysis was preferred in this study. Louvain clustering has the advantage of being fast and dealing with noise compared to K-means and Hierarchical clustering methods. The results of the study are evaluated from two perspectives. The first one is the inferences obtained from the descriptive statistics of the data set and the second one is the inferences obtained from the clustering analysis. The results of the cluster analysis emphasize the insights offered by the cluster changes in the temporal dimension and the formation of year-based clusters. In addition, the insights provided by the clustering results for Türkiye are evaluated.