Understanding the energy metabolism of World economies through the joint use of Production- and Consumption-based energy accountings

Understanding the energy metabolism of national economies is nowadays crucial for policymakers in order to define effective policies and to properly set energy efficiency targets. Energy accountings based on the traditional Production-based accounting method (PBA) allows to understand how primary energy is directly extracted, traded, transformed and used within each economy. On the other hand, Consumption-based accounting method (CBA) allows to understand the ultimate economic purposes of such energy flows. The information provided by the joint application of these approaches may provide useful and complementary insight on the national energy metabolism, allowing to identify hotspots for potential interventions from both the supply and demand side. This paper reviews PBA and CBA energy accounting methods, presenting a possible way for the joint use of their results, consistently represented by means of one unique Sankey diagram. This will be useful to have a comprehensive insight on the energy metabolism of national economies, supporting analysts and policymakers in the identification of energy efficiency hotspots. The method is applied to South Africa and to the neighbor country of Botswana, based on data provided by IEA energy statistics and the EORA26 Multi-Regional Input-Output model, taking into account non-renewable fossil energy (raw coal, crude oil and natural gas) and considering the reference year 2013. Results suggest that the joint use of PBA and CBA methods may provide useful information on the hidden energy links among national economies, helping analysts and policymakers in defining alternative energy efficiency policies. For this reason, the Authors argue that results of CBA should be provided alongside energy statistics based on the traditional PBA approach.