Decomposition analysis can provide a useful efficiency metric in the industrial sector, by separating the influence of changes in energy intensity from structural and activity changes. The activity refactorisation (AR) approach offers an improved decomposition methodology, with a better correlation to real efficiency improvements. This is achieved through combining monetary and physical output data. Here the AR approach is compared to other methodologies for the United Kingdom industrial sector over the period 1997-2012. Even with the limited availability of physical output data the AR approach was found to provide significantly different results. When monetary output was the sole measure of activity, intensity improvements were overestimated. It is recommended that physical output data is supplied alongside energy demand and monetary output data in national accounts to better track efficiency improvements and allow such improved metrics to feed into decarbonisation policy discussions.
|Title of host publication||The 11th Conference on Sustainable Development of Energy, Water and Environment Systems|
|Publication status||Published - 5 Sep 2016|
|Event||The 11th Conference on Sustainable Development of Energy, Water and Environment Systems - IST Congress Centre, Lisbon, Portugal|
Duration: 5 Sep 2016 → 8 Sep 2016
|Conference||The 11th Conference on Sustainable Development of Energy, Water and Environment Systems|
|Abbreviated title||SDEWES 2016|
|Period||5/09/16 → 8/09/16|