Decomposition analysis of factors affecting the energy intensity change for transport service activities in Vietnam

Abstract

Transport service activities have an increasingly important contribution to  the  economic  and  social  development  of  Vietnam.  However,  these  activities cause  great  energy  consumption,  affecting  energy  security  and  environmental quality.  Studies  of  their  energy  intensity have also  been carried  out in  the past years. However,   the  decomposition analysis of   expansion effect factors for transport services is still limited. This paper’s purpose is to decompose factors affecting energy intensity change of transport service activitiesin the period 2007-2012  and  2012-2019,  using  Logarithmic  Mean  Divisia  Index  (LMDI)  method. These two periods are analysed uponoriginal Input-Output (IO) table published in 2007  and  2012.  Besides,  IO  table  2019  is  updated  and  used  to  survey  energy intensity  change  in  recent  years.  The  energy  intensity  is  decomposed  with  three factors  including  effects  of  changes  in  economic  activity,  effects  of  energy consumption and effects of final demand. The results show that most of the three influencing  factors  cause an  increase  in  energy  intensity.  This  result  is  the  basis for  proposing  solutions  to  improve  the  factors  affecting  the  energy  intensity increase for transport service activities in Vietnam