The energy intensity in Lithuania during 1995‐2009: A LMDI approach

The measurement, assessment, and effective mitigation of energy intensity compose a foremost objective of contemporary energy policy. Although the European Union (EU) Member States have been experiencing the convergence in energy efficiency indicators, Lithuania, acceded to the EU in 2004, still remains peculiar with relatively high energy intensity. Our study, therefore, is aimed at analyzing the energy intensity trends in Lithuanian economy as a whole as well as in separate economic sectors. The investigation covers the period of 1995–2009. The Logarithmic Mean Divisia Index was applied for decomposition analysis. Our analysis has shown that energy efficiency falls during economic downturn. In order to facilitate these challenges the Lithuanian Government as well as business should opt for increasing energy efficiency in the most problematic sectors of transport and services. In addition, the analysis of legal acts, namely National Energy Efficiency Programme for 2006–2010 and Energy Efficiency Action plan for 2010–2016, was taken into consideration. Some suggestions, thus, were offered for successful implementation of strategic goals outlined in the aforementioned strategic documents.