Energy Indicators for Sustainable Development: Guidelines and Methodologies International Atomic Energy Agency United Nations Department of Economic and Social Affairs International Energy Agency Eurostat European Environment Agency


ANNEX 3: A DECOMPOSITION METHOD FOR



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ANNEX 3: A DECOMPOSITION METHOD FOR 
ENERGY USE INTENSITY INDICATORS
1
 
Introduction 
This annex provides an overview of a method that can be used to analyse energy-use 
developments in a disaggregated fashion. There are a number of journal publications 
that describe this method and related results.
2
The indicators employed to analyse energy use intensity are constructed by combining 
energy data with data that describe factors driving consumption in end-use sectors. 
From these data, various types of energy intensities can be developed. Energy 
intensities are related to the inverse of energy efficiencies, but are not equivalent. The 
two are related in that the energy intensity of an activity or productive output 
summarizes the relationship between an overall measure of output and the energy 
used for a variety of processes towards that end. Each process (e.g. heating, motive 
power) involves one or more transformations of energy that can be described in terms 
of efficiencies. 
Changes in intensities are affected by factors other than energy efficiency; therefore, 
analysing intensity trends provides important insights into how energy efficiency and 
other factors affect energy use.
The method described here distinguishes among three main components affecting 
energy use: activity levels, structure (the mix of activities within a sector) and energy 
intensities (energy use per unit of sub-sectoral activity). Depending on the sector
activity is measured either as value added, passenger-kilometres (km), tonne-km, 
population or built area. Structure divides activity further into industry sub-sectors, 
transportation modes or measures of residential end-use activity. Table A3.1 gives an 
overview of the various measures applied for activity, structure and energy intensities 
in each sector; Figure A3.1 illustrates the disaggregation into sectors, sub-sectors and 
end uses. 
1
The method presented here builds on the analytical framework developed under the International 
Energy Agency (IEA) Energy Indicator Project. Key findings of this work are presented in the IEA 
publication Oil Crises and Climate Challenges: 30 Years of Energy Use in IEA Countries (IEA 
2004). 
2
Selected references include the following: Krackeler et al. (1998); Schipper, Murtishaw, et al. 
(2001); Schipper, Unander, et al. (2001); Unander et al. (1999); Unander et al. (2004). 


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