Refined Divisia index eliminates residuals in industry energy and emissions decomposition analysis.
The researchers developed a new method to break down energy use and gas emissions in industries more accurately. They improved the Divisia index method by using a logarithmic weight function instead of an arithmetic one. This new method successfully breaks down the data without leaving any leftover information. It also works well even when there are zero values in the dataset. The researchers tested the method using industry data and found that it gives reliable results.