Structural decomposition of energy use in Brazil from 1970 to 1996

This paper examines the sources of changes in energy use of the Brazilian economy of industries and households from 1970 to 1996, using structural decomposition analysis based on the logarithmic mean divisia index technique. Energy use can be decomposed into eight factors that explain changes in overall energy use over the entire time period, and within five sub-periods. The growth of energy use between 1970 and 1996 was mainly influenced by changes in affluence, population and intersectoral dependencies, while changes in direct energy intensity and per capita residential energy use had a retarding impact on energy use. The novel contributions of the paper are the alignment of a previously disparate data set, the use of supply-use tables for SDA, and the application of such an SDA to a developing country. Both contributions involve solving a range of methodological issues pertaining to handling of large data sets.