• Environmental and Resource Economics Review
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• v.31 no.4
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• pp.825-848
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• 2022

This paper analyzed the factors for increasing energy consumption in the domestic manufacturing sector using the LMDI (Log mean division index) decomposition method for the period from 1999 to 2019. Among the LMDI decomposition analysis methods, both additive and multiplicative factor decomposition methods were used. in this analysis. According to the result of the analysis, the factor that increased energy consumption in the domestic manufacturing industry was the production effect, and the structure effect and intensity effect were found to be the factors that decreased energy consumption. In particular, the reduction of energy consumption due to the structure effect was greater than that of energy consumption effect due to the intensity effect. By period, it can be seen that energy consumption increased rapidly due to the production effect until 2011, but after that, the increase in energy consumption due to the production effect slowed down. On the other hand, after that, the energy reduction effect due to the structure effect and the intensity effect became prominent. In order to save energy in the manufacturing sector in the future, energy diagnosis and management through EMS (Energy management system) and FEMS (Factory energy management system) are more necessary. In addition, restructuring into a low-energy consumption industry seems more necessary.