The LMDI approach to decomposition analysis: a practical guide

In a recent study, Ang (Energy Policy 32 (2004)) compared various index decomposition analysis methods and concluded that the logarithmic mean Divisia index method is the preferred method. Since the literature on the method tends to be either too technical or specific for most potential users, this paper provides a practical guide that includes the general formulation process, summary table for easy reference and examples. (C) 2003 Elsevier Ltd. All rights reserved.