| Summary: | This study analyzed the characteristic of energy intensity in the
manufacturing sector during 1990-2000, the underlying forces behind its changes,
and the sources of those forces using index decomposition analysis (IDA).
Subsequently, this research used panel data analysis to explore some options
available to improve manufacturing energy intensity.
IDA suggested that there were real energy efficiency improvements in the
manufacturing sector during 1990-1993 and 1993-1996. These improvements
were shown by sub-sector intensity effect, which strongly pulled total energy
intensity down. The analysis also indicated that the strength of both forces mostly
came from the food, beverages, and tobacco industries.
The estimation result from panel data analysis suggests that electricity
price, ratio of product exported, and labor productivity negatively affect energy
intensity. It means that increasing those factors will enhance energy intensity level
in the manufacturing sector.
|
|---|