Using LMDI method to analyze the change of ASEAN’S energy consumption

Abstract

The article analyzes the change in absolute value of ASEAN's energy consumption in the period 2015–2021. The article also provides the driving forces of the above changes using the LMDI index decomposition technique. The decomposition technique explains variation through three effects: activity effects, structural effects, and intensity effects. The results show that, the increase in energy consumption of ASEAN countries in the period 2015–2021 is nearly six times higher than in the period 2018–2021. The strong increase in energy consumption in the period 2015–2018 is due to the explosion of the activity effect and the decrease in energy consumption in the later period due to the great influence of the intensity effect. The structural effect of ASEAN countries increases energy consumption, but not significantly.