Australia on track to achieve international targets for energy intensity reduction
10 May 2012
BREE today released its latest publication Economic Analysis of End-use Energy Intensity in Australia. In releasing the report BREE Executive Director Professor Quentin Grafton observed “The aggregate energy-GDP ratio in Australia declined at an average rate of 1.3 per cent a year over the past twenty years. If continued, and based on this measure, Australia is on track to achieve the energy intensity targets set by APEC Leaders for 2035”.
In the report, changes in energy consumption are decomposed into the activity effect, which is based on changes in the output or level of activity; the structural effect, which is based on changes in the composition of activity; and the efficiency effect, which is based on changes in energy intensity.
As noted by Professor Grafton, “Analysing and understanding trends in energy intensity is important because lower energy intensity can promote energy conservation, reduce energy consumption and help to deliver low-cost greenhouse gas abatement”.
In a discussion of the report’s key findings, Professor Grafton stated “The transport sector accounts for the largest share of final energy consumption of the sectors analysed, followed by the manufacturing sector. Energy intensity in each of these two sectors declined over the study period.”
In reference to other key results, Professor Grafton reported “Energy intensity fell marginally in the services sector and residential sector over the period 1989–90 to 2009–10, but end use energy consumption increased in these sectors.”
For free downloads of the Economic Analysis of End-use Energy Intensity in Australia report, please visit the Energy Programs webpage.