Decomposition Analysis of Energy Consumption in Lithuania, Poland and Slovakia

The present work applied the Logarithmic Mean Divisia Index methodology to decompose energy consumption in Lithuania, Poland and Slovakia by using a seven-factors equation. The equation allows to highlight the contribution of activity, structure, and intensity components on the energy consumption, jointly with other factors such as climatic conditions, energy consumption per capita, and the impact of district heating sectors which is relevant for the considered countries. Overall, it can be said that the activity component is responsible for a sharp increase in consumption. In contrast, the intensity consumption determines a strong decrease. Finally, the analysis shows that there is an overall increase in district heating consumption attributable to a decrease of the customers’ basis.