AGGREGATE ANALYSIS OF ENERGY INTENSITY IN BOLIVIA: AN APPLICATION OF LOG-MEAN DIVISIA INDEX DECOMPOSITION

  • Author
  • DAVID NICOLAS MAMANI HUACANI
  • Abstract
  • The research analyzes the change or variation of Bolivia's energy intensity using two effects that determine it: the effect of the economic structure and the effect of energy intensity by sectors. Quantifying these effects provides evidence to clarify, to some extent, the decision-making on energy management by the State and economic agents; in this sense, the objective is to explain how the effects of economic structure and energy intensity have an impact on the change or variation of the interannual energy intensity in Bolivia.

    For the application of the method, two sources of information published by the National Institute of Statistics (INE) and the Ministry of Hydrocarbons and Energy (MHE) were used. In relation to the INE, the data used correspond to the statistics of the Gross Domestic Product (GDP) at basic prices, or Value Added (VA), of the 35 activities or branches of activity of the economy in Bolivia, and in relation to the MHE, the data of the National Energy Balance (BEN) is used, referring to the 7 sectors of energy consumption.

    The method is derived from Index-based decomposition analysis, which is widely accepted as a methodological tool in energy and environmental issues. Within the index-based decomposition analysis are the methods linked to the Divisia Index, and on the latter is the Logarithmic Mean Divisia Index (LMDI) method. In this sense, although the method is applied both in the multiplicative and additive form, here we take the additive form. 

    The structure effect by sector presents relevant data regarding the weight of the Transport, Energy Transformation, Industry and Residential sectors on energy intensity. The other economic activities do not contribute more to the effect than the previous ones. At the time of the pandemic, the Transport activity accounts for a marked improvement in energy efficiency or reduction of energy intensity. Energy Transformation, Transport and the Residential part are so for the period 2011-2018.

    The intensity effect by sectors reveals that in the period 2011-2018, the Industrial sector has contributed to energy efficiency since its energy intensity has a negative sign and in large proportion. During the initial period 2000-2010, the Transport sector has a marked incidence in energy consumption by production value, but there is an improvement in subsequent years. Here it is important to note that with the pandemic and in the following years there is greater energy efficiency, but it is recovering pre-pandemic values.

  • Keywords
  • LMDI Method, Decomposition analysis, Energy intensity, Macroeconomícs
  • Modality
  • Comunicação oral
  • Subject Area
  • Energy and Macroeconomics
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  • Oil and Gas Markets and Investments
  • Energy Security and Geopolitics
  • Electricity markets
  • Energy and finance
  • Energy demand
  • Country studies
  • Energy and society
  • Energy Policy and Regulation
  • Climate Change: mitigation and adaptation
  • Disruptive innovation and energy transition
  • Energy and macroeconomics
  • Local governments
  • System integration
  • Energy and transport
  • Regional energy integration
  • LNG Markets in Latam
  • Social Dimensions of Energy Transition
  • Variable Renewable Energies
  • Distributed Energy Resources
  • System Integration, Energy Networks and Resilience
  • Energy Investment and Finance
  • Energy Market Design
  • Technology, Innovation and Policies
  • Low Carbon Hydrogen
  • Bioenergy and Biofuels
  • Energy and Development
  • New Supply Chains
  • Future of Utilities
  • Energy Efficiency
  • Energy Modeling
  • Energy and Macroeconomics
  • Energy Subsidies
  • Transportation and (e-) mobility
  • Nuclear Energy in Latam