Assessing Energy Consumption and Energy Intensity Changes in Pakistan: An Application of Complete Decomposition Model

Publication Year : 2001

Complete decomposition model has been employed in the present study to decompose the changes in energy consumption and energy intensity in Pakistan during 1960 to 1998. A general decomposition model raises a problem due to residual term. In some models the residual term is omitted, which causes a large estimation error, while in some models the residual term is regarded as an interaction that might create a puzzle for the analysis. A complete decomposition model is used here to solve this problem.