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Decomposition Analysis for Energy Use of SMEs In U.S. Manufacturing Industries Yadan Zeng Advisor: Dr. Chris Y. Yuan Department of Mechanical Engineering,

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Presentation on theme: "Decomposition Analysis for Energy Use of SMEs In U.S. Manufacturing Industries Yadan Zeng Advisor: Dr. Chris Y. Yuan Department of Mechanical Engineering,"— Presentation transcript:

1 Decomposition Analysis for Energy Use of SMEs In U.S. Manufacturing Industries Yadan Zeng Advisor: Dr. Chris Y. Yuan Department of Mechanical Engineering, UWM-Industrial Assessment Center This work first analyzes the energy use of small and medium size manufacturing industries in 15 industry subsectors between 2003 and 2014. Then, the logarithmic mean Divisia index method (LMDI) is used for the decomposition analysis to assess the influence of different factors on SMEs manufacturing energy use. To better understand the result of the analysis, only additive decomposition result of each year is shown. DESCRIPTION OF WORK No.Subsector Share of energy use in 2003 Share of energy use in 2014 Energy Intensity in 2003 Energy Intensity in 2014 Change in 2014 compared to 2003 1Food product6.9%18.9%0.60.4-38.5% 2Textile and product mills2.7%2.6%1.00.6-36.7% 3Apparel manufacturing0.2% 2.512.1388.8% 4Wood product4.1%7.1%0.81.131.0% 5 Furniture and related products 0.6%0.8%0.38.92755.8% 6 Printing and paper manufacturing 3.4%8.4%0.30.553.0% 7Chemical manufacturing45.8%10.4%0.91.227.3% 8Plastics and rubber5.1%9.8%0.10.3147.6% 9 Nonmetallic mineral products 12.2%10.7%5.31.8-67.0% 10 Primary metal manufacturing 7.9%5.1%2.10.5-74.6% 11Fabricated metal product4.6%6.4%0.1 35.9% 12 Machinery manufacturing 2.9%4.7%6.31.8-71.1% 13 Electricc and electronic equipment 1.2%3.3%1.15.9420.7% 14 Transportation equipment 1.4%11.0%1.413.8904.4% 15Other manufacturing1.1%0.6%3.00.3-90.5% RESEARCH DATA The original energy usage data is obtained from the IAC database, version updated in Nov, 2014. Below is a part data (year of 2003 and 2014) of the energy usage data used in this analysis. The 15 industry subsectors is determined according to assigned Standard Industrial Classification (SIC) code. All subsectors fall in to range 2000 to 4000. Energy intensity of each sector is calculated using the equation: Energy Intensity (kWh/ unit of output) = Energy consumption (kWh) / Production (unit of output) Contact Information Yadan Zeng zengy@uwm.edu Share of Energy Use and Intensity in Different Subsectors in 2003 and 2014

2 Decomposition Analysis for Energy Use of SMEs In U.S. Manufacturing Industries Yadan Zeng Advisor: Dr. Chris Y. Yuan Department of Mechanical Engineering, UWM-Industrial Assessment Center METHODOLOGY Contact Information Yadan Zeng zengy@uwm.edu

3 Decomposition Analysis for Energy Use of SMEs In U.S. Manufacturing Industries Yadan Zeng Advisor: Dr. Chris Y. Yuan Department of Mechanical Engineering, UWM-Industrial Assessment Center RESULTS REFERENCES 1.Ang, B.W., 2005. The LMDI approach to decomposition analysis: a practical guide. Energy Policy 33 (2005) 867-871. 2.Unander, F., M. Ting, L. Fulton, D. Justus, and S. Karbuz. 2004. Oil Crises and Climate Challenges: 30 Years of Energy Use in IEA Countries. Paris: International Energy Agency. 3.Lescaroux, Francois, 2008, Decomposition of US Manufacturing Energy Intensity and Elasticities of Components with respect to Energy Prices, Energy Economics 30 (2008) 1068-1080. Contact Information Yadan Zeng zengy@uwm.edu


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