DECOMPOSITION OF INDUSTRIAL ENERGY CONSUMPTION IN TURKEY

Energy efficiency means reducing amount of energy required to produce goods and services. Improving energy efficiency is an important issue concerning reduction of energy dependency, energy security, competitiveness and sustainable growth, as well as environmental concerns and climate change. In the literature, changes in aggregate energy intensity are decomposed into real energy intensity effect and structural change effect with the help of Logarithmic Mean Divisia Index (LMDI) method. In this study, the energy efficiency of agriculture, industry and services and the effectiveness of the policies followed are revealed for the period 2003-2017. In addition, the energy efficiency of the sub-sectors is examined to determine the importance of the energy intensive sectors.

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