Consistent multi-level energy efficiency indicators and their policy implications

In order to cope with the global warming issue, most of the Asia-Pacific Economic Cooperation (APEC) economies have made energy conservation policy a top priority in terms of their energy policies. The energy efficiency indicators included in the present paper focus on the micro-foundation aspects. There are basically two types of energy efficiency indicators, namely, the economic-thermodynamic energy efficiency indicators (that use real GDP as the denominator), and the physical-thermodynamic energy efficiency indicators (that are based on the output volume index). While the common definitions and consistent methodology used in the present paper fulfill the IEA pyramid EEI concept, the new methodology in this paper compares the decomposition effects between upstream and downstream industries when aggregating efficiency changes. These decomposition effects can thereby provide valuable explanations for the energy conservation policy needed by energy policy and government administrators.