LMDI decomposition analysis of change in energy consumption in the non-energy industrial sector: The Algerian case

Main Article Content

Sarra Robei
Noureddine Settou
Djilali Messaoudi


The reduction of energy consumption is an important key not only to improving the performance of the Algerian economy but also to contributing to the effective mitigation of greenhouse gas emissions. This study provides a decomposition analysis of a set of sub-sectors belonging to the non-energy industry in terms of energy use. The Logarithmic Mean Divisia Index (LMDI) is used to identify the factors affecting the change in energy consumption between 2002 and 2015. It is estimated that the energy consumption of Algeria's non-energy industries has increased from 4904 ktoe in 2002 to 8818 ktoe in 2015. The findings reveal that the increase in energy consumption in Algeria’s non-energy industry was due to the activity effect, whereas the structure and intensity effects contributed to the decrease. The increase in energy consumption due to the activity effect is largest in the construction materials industry. The intensity effect has a significant impact on energy consumption in the iron and steel, mechanical, electronic, and electrical equipment industries. Furthermore, the construction materials industry had a large share of the total change in energy consumption for the entire non-energy industry during 2002–2015, accounting for 136%.

Article Details

How to Cite
S. . Robei, N. . Settou, and D. . Messaoudi, “LMDI decomposition analysis of change in energy consumption in the non-energy industrial sector: The Algerian case”, J. Ren. Energies, vol. 1, no. 1, pp. 139 -, Apr. 2023.


Wen Z, Chen M, Meng F. Evaluation of energy saving potential in China's cement industry using the Asian-Pacific Integrated Model and the technology promotion policy analysis. Energy Policy. 2015;77:227-37.

Wang R, Jiang L, Wang Y, Roskilly APJJoCP. Energy saving technologies and mass-thermal network optimization for decarbonized iron and steel industry: A review. 2020:122997.

Yang F, Yu Q, Zuo Z, Hou LJES, Part A: Recovery, Utilization,, Effects E. Thermodynamic analysis of waste heat recovery of aluminum dross in electrolytic aluminum industry. 2021;43(9):1047-59.

Zhou Q, Cui X, Ni H, Gong L. The impact of environmental regulation policy on firms' energy-saving behavior: A quasi-natural experiment based on China's low-carbon pilot city policy. Resources Policy. 2022;76:102538.

Paleologos EK, Caratelli P, Amrousi ME. Waste-to-energy: An opportunity for a new industrial typology in Abu Dhabi. Renewable and Sustainable Energy Reviews. 2016;55:1260-6.

Ang BWJEp. Decomposition analysis for policymaking in energy:: which is the preferred method? 2004;32(9):1131-9.

Ang BWJEp. The LMDI approach to decomposition analysis: a practical guide. 2005;33(7):867-71.

Ang BW, Liu FLJE. A new energy decomposition method: perfect in decomposition and consistent in aggregation. 2001;26(6):537-48.

Ang BW, Wang HJEE. Index decomposition analysis with multidimensional and multilevel energy data. 2015;51:67-76.

Gouareh A, Settou N, Khalfi A, Recioui B, Negrou B, Rahmouni S, et al. GIS-based analysis of hydrogen production from geothermal electricity using CO2 as working fluid in Algeria. International Journal of Hydrogen Energy. 2015;40(44):15244-53.

Rahmouni S, Settou N, Negrou B, Gouareh A. GIS-based method for future prospect of hydrogen demand in the Algerian road transport sector. International Journal of Hydrogen Energy. 2016;41(4):2128-43.

Messaoudi D, Settou N, Negrou B, Settou BJIJoHE. GIS based multi-criteria decision making for solar hydrogen production sites selection in Algeria. 2019;44(60):31808-31.

Settou B, Settou N, Gouareh A, Negrou B, Mokhtara C, Messaoudi DJCT, et al. A high-resolution geographic information system-analytical hierarchy process-based method for solar PV power plant site selection: a case study Algeria. 2021;23(1):219-34.

Recioui B, Settou N, Khalfi A, Gouareh A, Rahmouni S, Ghedamsi R. Valorization of carbon dioxide by conversion into fuel using renewable energy in Algeria. Transportation Research Part D: Transport and Environment. 2016;43:145-57.

Sahnoune F, Belhamel M, Zelmat MJES, Part B: Economics, Planning,, Policy. Algerian energy policy and potential to reducing greenhouse gas emissions. 2016;11(12):1118-27.

Soni A, Mittal A, Kapshe MJR-ET. Energy Intensity analysis of Indian manufacturing industries. 2017;3(3):353-7.

Olanrewaju OA. Energy consumption in South African industry: A decomposition analysis using the LMDI approach. 2018;29(2):232-44.

Cai W, Liu C, Lai K-h, Li L, Cunha J, Hu LJEC, et al. Energy performance certification in mechanical manufacturing industry: A review and analysis. 2019;186:415-32.

Kulionis V, Wood RJE. Explaining decoupling in high income countries: A structural decomposition analysis of the change in energy footprint from 1970 to 2009. 2020;194:116909.

Ang B, Lee PJEE. Decomposition of industrial energy consumption: the energy coefficient approach. 1996;18(1-2):129-43.

Ang BW, Lee SY. Decomposition of industrial energy consumption. Energy Economics. 1994;16(2):83-92.

Ramirez C, Patel M, Blok KJE. The non-energy intensive manufacturing sector.: An energy analysis relating to the Netherlands. 2005;30(5):749-67.

Seck GS, Guerassimoff G, Maïzi N. Analysis of the importance of structural change in non-energy intensive industry for prospective modelling: The French case. Energy Policy. 2016;89:114-24.

Winyuchakrit P, Limmeechokchai, Bundit,. Trends of energy intensity and CO2 emissions in the Thai industrial sector: The decomposition analysis. 2016;11(6):504-10.

Goh T, Ang BJEE. Comprehensive economy-wide energy efficiency and emissions accounting systems for tracking national progress. 2019;12(8):1951-71.

Zhang X, Geng Y, Tong YW, Kua HW, Dong H, Pan HJFiE. Trends and driving forces of low-carbon energy technology innovation in China’s industrial sectors from 1998 to 2017: from a regional perspective. 2021:1-14.

Ministère de l’Energie. Bilan Energétique National. 2002, 2003, 2004, 2005, 2006, 2007, 2008, 2009, 2010, 2011, 2012, 2013, 2014 et 2015.

Office National des Statistiques. L’activité industrielle 2005-2015. 2016.

Office National des Statistiques. Les comptes économiques en volume de 2000 à 2014. 2016.