Three-way compositional analysis of energy intensity in manufacturing

Both the scientific and political communities agree that significant reductions in CO2 emissions are necessary to limit the magnitude and extent of climate change and of course the energy efficiency is one of the most interesting issues analyzed by economists and policy makers within this debate. Different measures of energy efficiency in manufacturing can be defined but broadly this is the ratio of the production output to the energy input, usually disaggregated by industry. We create a global data set of energy intensity in manufacturing and analyze its structure by country, time and industry applying parallel factor analysis (CP). Since we are interested in the structure of the energy intensity, the absolute values are no more relevant for the analysis and the nature of this data set is compositional which requires specific adaptation of the methodology and suitable software.