Decomposition analysis of electricity use in the Jordanian Industrial sector between years 2008

This paper is focused on the electricity demand of the industrial sector in Jordan, since it is responsible for about 24.15% of the total electricity consumption in the country. Analyses of the changes in energy demand for the years 2008–2013 and the factors affecting this demand are investigated in this study. The modified Laspeyers factor decomposition approach is used to give a more precise estimate of how changes in industrial production, structural, and efficiency effects contributed to the changes in electricity demand. The Jordanian industrial sector was disaggregated into twenty two sub-sectors according to International Standard Industrial Classification of All Economic Activities (ISIC). A major finding of this paper is that although increased industrial production caused energy demand to increase between 1998 and 2005, significant improvements in energy efficiency and structural shift have contributed to reducing the rate of this increase.