Energy intensity trend explained for Sao Paulo state

A sectorial analysis and a logarithmic mean Divisia Index (LMDI) technique are used in this paper to decompose the energy intensity of the state of Sao Paulo from 1995 to 2012 into the economic activity effect and the energy efficiency effect. This study contributes the following observations: (1) The world energy intensity has decreased steadily, but the energy intensity of the Sao Paulo state has been volatile and has declined 2.3% since 1995. (2) In the period of study, declining energy intensity of the primary and tertiary sectors was observed. In contrast, the energy intensity of the secondary sector has been gradually increasing. (3) The energy efficiency effect was the primary driver of energy intensity change through 2007, and the economic activity effect subsequently had an increasingly more important role in the change. (4) The economic structure remained constant until 2004 when the services sector shift became more significant. It is hypothesized that the increasing energy intensity from 2005 to 2009 was caused by the growth of inefficient sugarcane bagasse consumption.