A spatial shift-share decomposition of electricity consumption changes across Italian regions

This paper explores the changes in regional electricity consumption at the NUTS 3 level in Italy over the period 2000-2013. The analysis of regional electricity consumption changes is carried out by introducing a spatial shift share decomposition measuring the neighbourhood effect on regional energy efficiency change. Our findings show that a shift toward less electricity-intensive activity sectors has occurred in almost all regions, reducing regional electricity consumption. A fall in economic activity has contributed to reducing electricity consumption in many regions, especially in Southern Italy. Notwithstanding the negative contributions of changes in industry mix and economic activity, electricity consumption has increased in most regions due to the increase in electricity intensity. The increase in electricity intensity in Southern and North-Eastern regions has been enhanced by a neighbourhood disadvantage in energy efficiency. Electricity intensity has decreased in most NUTS 3 regions in Sardinia, an Italian region at the NUTS 2 level, due to both regional and neighbourhood advantages in energy efficiency.