Decomposition of Industrial Energy Consumption in Turkey

Abstract

Energy efficiency means reducing amount of energy required to produce goods and services. Improving energy efficiency is an important issue concerning reduction of energy dependency, energy security, competitiveness and sustainable growth, as well as environmental concerns and climate change. In the literature, changes in aggregate energy intensity are decomposed into real energy intensity effect and structural change effect with the help of Logarithmic Mean Divisia Index (LMDI) method. In this study, the energy efficiency of agriculture, industry and services and the effectiveness of the policies followed are revealed for the period 2003-2017. In addition, the energy efficiency of the sub-sectors is examined to determine the importance of the energy intensive sectors.

Industrial Energy Efficiency Technologies and Management Applications in Turkey

“…Although this value is below the OECD average of 0.108 and the world average of 0.172, the low energy intensity of an economy may indicate either a less energy-intensive economic structure or/and more efficient energy use. For this reason, examining the sectoral structure and evaluating its effect on energy intensity changes is important in terms of calculating the real energy efficiency of Turkey [1].…”

“…After the first oil crisis in 1973, the problem of energy security emerged as a prominent issue mostly for developed countries. However, later on, energy security has become a more global issue due to the increase in energy consumption and supply groups and the international agreement of the world energy industry, political turmoil and wars, and continued volatility in energy supply [1].…”