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This training seminar focused on the analysis of macro data and economic indicators as they relate to energy productivity performance. Held in Madrid by IDAE, it covered essential topics including the conversion of national currencies to constant prices, the use of Purchasing Power Parities (PPP), and how these factors impact electricity intensity trends. Key findings highlighted the changes in electricity intensity across countries like Sweden, Nigeria, and France, emphasizing the importance of consistent pricing methods for accurate comparison.
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Case studies on macro data and indicators: Training seminar on Odyssee data and indicators Madrid, IDAE, June 23-24 2010 Karine Pollier Enerdata
Content • From national currency to international monetary unit (e.g. Euro or US$) • Current prices vs constant prices • Purchasing Power Parities (ppp)
From current prices to constant prices From national currency to Euro or US£ • For comparison of energy productivity performance, economic data need to be expressed aat constant prices to remove the effect of inflation Fromcurrentprices to constant prices GDP xx (t=2005)= GDP / DEFL *DEFL (t=2005) with DEFL: GDP deflator • National currencies need to be converted in the same currency (e.g. in € in ODYSSEE) with the exchange rate of one year only for all years: the rate of the year used for constant prices (e.g. 2005) From national currency to constant € GDP €2005= GDP xx / txchg €(t=2005)
Electricity intensity at constant prices (1) • GDP: from national currency in currentprices to constant € GDP €2005= GDP / DFL*DFL (2005) / txchg€ (2005)
Electricity intensity at constant prices • Energyintensity trends : need to calculateintensityat constant prices • Evolution of the intensitysince 2000 (in %/year) • Electricityintensity has decresed in Sweden and Nigeria (repectively by 1.8%/y and 1.2%/y) from 2000 to 2007. • On contrary, for France the electrictyintensity has increased by 0.4%/y since 2000
Changes in reference year for intensity Same trends for GDP in SEK 2000 or 2005, or in € 2000 or 2005 (+2.6%/y)
Changes in reference year for intensity Sameevolution for the GDP expressed in € or PPP : PPP narrowsdifference , influence the level of the curves but does not changed the trends
Electricity intensity calculation • Electricityintensity in exchange rate vs ppp exchange rate Use of PPP increases GDP and, thus, decreases energy intensity of countries with low cost of living (such Nigeria); conversely intensity of rich countries increases (France, Sweden) PPP narrows differences between countries IE = C/(GDP / txchg) with C : electricity cons GDP in national currency txchg = exchange rate (national currency to €) Electricityintensityishigher for France in Sweden in ppp On the contrary , the electricityintensity of Nigeria is 1/3 less important in ppp compared to exchange rate
Electricity intensity : at exchange rate vs ppp Narrowing of levelsat ppp