Efficiency of electricity consumption in Pakistan's industrial sector: An application of the multi-level decomposition model

This study analysed the efficiency of electricity consumption by the industrial sector of Pakistan for the benchmark years, using the multi-level decomposition model. Multi-level decomposition analysis allows evaluating the impact of sector disaggregation and hence provides a better understanding of the underlying mechanisms of changes in industrial electricity demand. The results indicate that industrial energy efficiency was increased during the period under consideration. The efficiency of electricity use in the low energy-intensive group of Pakistan's industrial sector improved in particular. At the industrial group level, the structural effect is more sensitive for the improvement in efficiency of electricity use, while at the industrial sector level, the intensity effect is responsible for the efficient use of electricity in the country.