Changes in energy consumption and energy intensity: A complete decomposition model

There is a common problem in the general decomposition models, i.e. the residual term. In some models the residual is omitted that causes a large estimation error, while in some models the residual is regarded as an interaction that still leaves a new puzzle for the reader. A complete decomposition model introduced here has solved this problem. As an example of the application of the complete decomposition model, the decomposition of the changes in the world energy consumption, energy intensity in 1973-1990 has been modeled. (C) 1998 Elsevier Science B.V.