This study first analyzes the energy use of and output from seventeen different industrysubsectors in California. Then, decomposition analysis is conducted to assess the influence ofdifferent factors on California industry energy use. The logarithmic mean Divisia index methodis used for the decomposition analysis. The energy intensity analysis calculated based oneconomic output of the sectors (value added) shows that “Oil and gas extraction” is the onlysector that has higher final energy intensity in 2008 than in 1997. “Electric and electronicequipment manufacturing” and “Apparel manufacturing” show the greatest drop in final energyintensity from 1997 to 2008. Decomposition analysis results show that the activity effects in alltime periods studied are positive because the real value added in chained year-2005 dollarsincreased during these periods. The other large effect is the structural effect. The majorcontributors to the structural effect are the “Electric and electronic equipment manufacturing,”“Oil refineries,” “Oil and gas extraction,” and “Nonmetallic minerals manufacturing.” Theintensity effect is positive from 1997 to 2000, primarily because the final energy intensity of the“Oil and gas extraction”, shows an increasing trend from 1997 to 2000. However, the intensityeffect is negative during 2001 to 2007.
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