Industrial Electrification and Efficiency: Decomposition Evidence from the Korean Industrial Sector

For this study, we conducted a decomposition analysis of industrial electricity consumption based on the logarithmic mean Divisia index approach. An empirical dataset consisting 11 sectors in Korea from 2000 to 2018 was used. The three-factor equation extended include four factors by decomposing energy intensity effect into electrification and efficiency effects. results are summarized as follows: increase Korean sector is mostly caused production effect. While structure decreases consumption, increases it. key findings indicate that hidden can be confusing researchers with regard evidence suggests has positive induced effect, although continuously decreased consumption. some show electrification, rather than contributed most This implies while replacing fuel been successfully achieved several sectors, there still challenges regarding increasing expanding clean generation.