The multiplicative factorial decomposition of global inequalities in energy
intensities shows that such inequalities are fundamentally attributable to
differences in final energy consumption per GDP unit (Tw). Inequalities in final
energy intensity are even higher than inequality in primary energy intensity
during almost the entire period, although are slightly lower at the end of the
period (96.8%). From a dynamic perspective, inequality in final energy
consumption per GDP unit has declined considerably. Its contribution has
basically halved at the end of the period. Given its relative weight, this huge
decline explains the strong reduction observed in global inequality in primary
energy intensity. Moreover as —according to IEA data— global final energy
intensity decreased by 42.4%, the reduction in final energy intensity inequality
means convergence to lower final energy intensity values.
The contribution of the transformation component (Tf) to global energy intensity
inequalities is not negligible, although it is much lower than that of the final
intensity. In relative terms this contribution declines until 1990. It starts
increasing from this year on to reach a maximum of 7.9% in 2006. That is,
something less than one tenth of cross country energy intensity inequality would
be due to efficiency differentials in transforming primary energy into final energy
in the energy sector of the different countries.
The interaction coefficient indicates a negative correlation of the two
components considered. Its contribution is not very important, particularly at the
end of the period. In any case, it reveals that countries that are less efficient in
energy transformation also tend to be the ones that consume less final energy
per GDP unit. That is, global inequalities would tend to compensate one
another. This explains why for some years differences in final energy
consumption per GDP unit are greater than differences in energy intensity.
The evolution of final energy intensity inequalities also explains the observed
changes in energy intensity inequalities during the period. Policy wise, there is a
lot a ground to cover to bring energy intensity down to the low values.
Implementing measures that encourage a more efficient use of final energy in
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