Case studies on macro data and indicators: Training seminar on Odyssee data and indicators Madrid, IDAE, June Karine Pollier Enerdata

 From national currency to international monetary unit (e.g. Euro or US$)  Current prices vs constant prices  Purchasing Power Parities (ppp ) Content

 Current prices vs constant prices Purchasing Power Parities

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 GDP xx (t=2005) = GDP / DEFL *DEFL (t=2005) with DEFL: GDP deflator GDP €2005= GDP xx / txchg € (t=2005) From current prices to constant prices From national currency to constant €  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)

Electricity intensity at constant prices (1)  GDP: from national currency in current prices to constant € GDP €2005= GDP / DFL*DFL (2005) / txchg€ (2005)

Electricity intensity at constant prices  Evolution of the intensity since 2000 (in %/year) Electricity intensity has decresed in Sweden and Nigeria (repectively by 1.8%/y and 1.2%/y) from 2000 to On contrary, for France the electricty intensity has increased by 0.4%/y since 2000  Energy intensity trends : need to calculate intensity at constant prices

Changes in reference year for intensity Same trends for GDP in SEK 2000 or 2005, or in € 2000 or 2005 (+2.6%/y)

Same evolution for the GDP expressed in € or PPP : PPP narrows difference, influence the level of the curves but does not changed the trends Changes in reference year for intensity

Electricity intensity calculation  Electricity intensity in exchange rate vs ppp exchange rate Electricity intensity is higher for France in Sweden in ppp On the contrary, the electricity intensity of Nigeria is 1/3 less important in ppp compared to 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 €)

Electricity intensity : at exchange rate vs ppp Narrowing of levels at ppp