Spatial decomposition of drivers of household energy use in Metro Manila using LMDI

Abstract

The trend on the migration to home-based work environment as an option for the global workforce implies that the Philippines’ residential energy use is as significant as in the industrial and commercial sectors. Improving efficiency and reducing energy intensity in these sectors are as important in the context of sustainability. Little to no studies have looked into the potential drivers to household energy consumption in a developing country such as the Philippines. Using a spatial decomposition analysis approach, various drivers to increasing household energy consumption in Metro Manila are estimated. Household size, income levels, energy intensity and energy use structure are considered in the study. The use of spatial decomposition techniques provides a new way to compare drivers between individual regions. The results are used to identify priority areas for electricity management and to draw insights for curbing household energy use. Policy implications are provided to conclude the study.