Analyzing Industrial Energy Consumption in the Czech Republic

The logarithmic mean Divisia index decomposition method is used to analyze the changes in the energy consumption of the Czech industrial sector during the period of 1993 to 2011. The results show the energy consumption was mainly affected by the improvements in the energy efficiency (which, however, lost most of their momentum after 1999). The impacts of the changes in the structure exhibit two opposing periods: from 1993 to 1999, the energy consumption was pushed up, up to the overall increase of nearly a third of the industrial energy consumption in 1993. However, this structural consumption increase was almost completely eradicated in the period 2004 to 2011. The change in the consumption due to the changes in the economic activity of the industry would have contributed to the net increase of the energy consumption by 6704 TOE. With the combination with other factors, the overall decrease of energy consumption in the examined period was over 42% of the industrial energy consumption in 1993.