Driving factors and decoupling analysis of natural gas consumption in major Organization for Economic Cooperation and Development countries

Sci Prog. 2023 Jul-Sep;106(3):368504231180783. doi: 10.1177/00368504231180783.

Abstract

Natural gas is regarded as the main transition energy under the carbon-neutral strategy and its main consumers are Organization for Economic Cooperation and Development countries, accounting for 44.5% of world consumption in 2021. In order to investigate the effects of technology, industry, and regions on natural gas consumption, 12 major Organization for Economic Cooperation and Development countries from three different country groups were selected in this paper to explore the consumption change. Firstly, the Logarithmetic Mean Divisia Index model is adopted to find out the driving factors. Then, the Tapio model is used to consider the decoupling state between natural gas consumption and economic growth. The results can be concluded as follows: (a) From 2000 to 2020, the technological progress effect has the biggest values of -148.86, followed by the industrial structure effect and the regional scale effect, with values of - 37.04 and 29.42, respectively. (b) From the perspective of industry view, these three effects have the largest impact on the secondary industry, followed by the tertiary industry and primary industry; (c) the regional scale effect has a positive effect on most countries, and the industrial structure effect and the regional scale effect have a negative effect on most countries; (d) the decoupling state vary differently in countries with different groups. Therefore, we concluded two policy recommendations for nature gas reduction: (a) Technological innovation is the most effective way for reducing natural gas consumption; (b) Industrial structure optimization can help save natural gas consumption.

Keywords: Logarithmetic Mean Divisia Index model; Tapio model; decomposition analysis; decoupling effect; natural gas.