Issues in International Energy 

Consumption Analysis: Canadian 

Energy Demand

June 2015

Independent Statistics & Analysis

www.eia.gov

U.S. Department of Energy

Washington, DC 20585
U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand

This report was based on Natural Resources Canada 2009 data (accessed in 2012). For more current 

data see 

 Handbook tables: 

http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/handbook_tables.cfm?attr=0 

 Comprehensive tables:

http://oee.nrcan.gc.ca/corporate/statistics/neud/dpa/comprehensive_tables/list.cfm?attr=0

 ------------------------------------------------------------------------------------------------------

This report was prepared by the U.S. Energy Information Administration (EIA), the statistical and 

analytical agency within the U.S. Department of Energy. By law, EIA’s data, analyses, and forecasts are 

independent of approval by any other officer or employee of the United States Government. The views 

in this report therefore should not be construed as representing those of the U.S. Department of Energy 

or other federal agencies.
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand ii

Table of Contents

Overview.......................................................................................................................................................1

Energy consumption in Canada ...............................................................................................................1

Methodology ...........................................................................................................................................2

Data sources and considerations......................................................................................................2

Factors affecting household energy consumption ..................................................................................3

Housing Types...................................................................................................................................3

Regional Distribution.........................................................................................................................5

Size effect..........................................................................................................................................6

Weather effects.................................................................................................................................7

Fuel source change............................................................................................................................8

Results....................................................................................................................................................11

Decomposition of effects for total energy 1990-2009....................................................................11

Decomposition of effects for total energy 1990-2001 and 2001-2009.................................................14

National...........................................................................................................................................14

Regional...........................................................................................................................................15

Conclusion...................................................................................................................................................17

References ..................................................................................................................................................18

Appendix A. Additional Decomposition Results and Comparison of Aggregate and Decomposed 

Intensity ......................................................................................................................................................19

Appendix B. Decomposition Methodology................................................................................................20
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand iii

Figures

Figure 1. Distribution of household energy consumption by energy source, 2009 .....................................1

Figure 2. Distribution of household energy consumption by end use, 2009................................................2

Figure 3. Distribution of households, floorspace, and energy consumption by housing type in 1990 and 

2009 ..............................................................................................................................................................3

Figure 4. Household energy consumption intensity by housing type: 1990 and 2009 and percent change 

from 1980......................................................................................................................................................4

Figure 5. Percent change in distribution of housing by regions, 1990-2009................................................5

Figure 6. Household energy consumption intensity by regions, 2009 and percent change from 1990.......6

Figure 7. Growth in average floorspace per household by housing types and regions, 1990 to 2009 ........7

Figure 8. Fuel shares of total site energy in Canadian households 1990, 2001, and 2009 and percent 

change from 1990.........................................................................................................................................8

Figure 9. Percent change in household natural gas consumption between 1990 and 2009 and 

distribution of natural gas consumption in 2009 by end use .......................................................................9

Figure 10. Percent change in household electricity consumption between 1990 and 2009 and 

distribution of electricity consumption in 2009 by end use .......................................................................10

Figure 11. Decomposition of change in total energy consumption, 1990-2009 ........................................13

Figure 12. Decomposition of total energy consumption, 1990-2001 and 2001-2009................................15
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand iv

Tables

Table 1. Per-household stocks of natural gas appliances and other end usesa, 1990, 2001, and 2009.......9

Table 2. Per-household stocks of selected electrical appliances and end usesa

, 1990 and 2009 ..............11

Table 3. Decomposition of total energy by regions, 1990-2009.................................................................14

Table 4. Decomposition of total energy by regions, 1990-2001 and 2001-2009 .......................................16

Table A1. Preliminary analysis of decomposition of total electricity consumption without type effect ...19

Table A2. Comparison of decomposed and aggregate intensity ................................................................19
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 1

Overview

The residential sector is one of the main end-use sectors in Canada, accounting for 16.7% of total enduse site energy consumption in 2009 (computed from Natural Resources Canada (NRCan) 2012. pp, 4-5). 

In that year, the residential sector accounted for 54.5% of buildings total site energy consumption. 

Between 1990 and 2009, Canadian household energy consumption grew by less than 11%. Nonetheless, 

households accounted for 14.6% of total energy-related greenhouse gas emissions1 in Canada in 2009 

(computed from NRCan 2012). This is the U.S. Energy Information Administration’s second study to help 

provide a better understanding of the factors affecting residential energy consumption and intensity in 

North America (mainly the United States2 and Canada) by using similar methodology for analyses in both 

countries.

Energy consumption in Canada

In 2009, Canadian households consumed about 1.35 quadrillion Btu (quads) of site energy3, mainly 

natural gas, electricity, wood, and fuel oil (Figure 1). Space heating and water heating accounted for 

more than 80% of this consumption (Figure 2). Household energy consumption grew slower than the 

number of household and floorspace, which decreased the aggregate energy intensity over the 19-year 

period. Between 1990 and 2009 households’ site energy increased by 10.4%.4

 Over this same interval, 

the number of buildings grew by 30.4% and total floorspace by 39.3%. As a result, aggregate energy 

intensity decreased by 20.1% on a per building basis and by 28.9% on a per square foot basis.

Figure 1. Distribution of household energy consumption by energy source, 2009

Source: Natural Resources Canada 2011, Table 1.

 1 Including electricity-related emissions. 2 U.S. analyses are presented in Hojjati and Wade (2012).

3 Site energy does not include losses that occur in the generation, transmission, and distribution of energy. 4 All reported percentage changes related to decomposition are logarithmic.
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 2

Figure 2. Distribution of household energy consumption by end use, 2009

Source: Natural Resources Canada 2011, Table 2.

Methodology

The aggregate intensity changes do not account for several important structural changes affecting 

energy intensity that the decomposed intensity results quantify. This analysis follows Hojjati and Wade 

(2012) which analyzed U.S. residential energy consumption and distinguished among four component 

categories5 affecting energy use: activity, structural changes, intensity, and weather effects:

• Activity is defined as number of households

• Structural changes represent the shifts in the mix of housing types, the regional distribution of 

households, and the floorspace per household

• Energy intensity is the ratio of energy consumption to floorspace

• Weather reflects seasonal fluctuation in weather.

Decomposition methods based on Ang & Choi (1997) were applied to isolate the effects of these factors 

on aggregate energy intensity. The methodology is summarized in Appendix B. 

Data sources and considerations

The analyses in this study are based on the NRCan comprehensive database available on the web. 

NRCan data are the most detailed historical energy-related data available for the residential sector in 

Canada.6

 NRCan detailed data for the 1990-to-2009 period are used for this analysis. Hence, analyses of 

national and regional level NRCan data from 1990 to 2009 are the main focus of this report. The 

following section describes trends in NRCan data over the period of analysis. After reviewing trends, the 

 5 Although household behavior such as energy conservation and responses to change in energy prices affect changes in energy 

consumption, these factors are not considered in these decomposition analyses. 6 NRCan energy consumption data were converted from Petajoule to quadrillion Btu using a conversion factor of a 

BTU=1,055.055 852 62 Joule. Floorspace data were converted from square meters to square feet using a conversion factor of 1 

square foot = 0.09290304 square meters.
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 3

results of the decomposition analyses are presented. The analyses in this study are based on Natural 

Resources Canada 2009 data (accessed in 2012).

Factors affecting household energy consumption

Housing types

NRCan data includes four types of housing units – single-family attached, single-family detached, 

apartments, and mobiles. Combined single-family units accounted for about 67.2% of the households, 

78.3% of floorspace, and almost 80% of site energy consumption in 2009 (Figure 3). Of the remaining 

households, 30.9% were apartments and 1.9% were mobile homes.

Figure 3. Distribution of households, floorspace, and energy consumption by housing type in 1990 

and 2009

Source: Natural Resources Canada 2011, Tables 20, 24, 39, 42, 45, and 48.

Energy consumption per household was greatest for single-family homes and about two times higher 

than that of apartments (Figure 4). However, per square foot energy consumption in mobile homes was 

higher than that of single-family and apartments. The single-family shares for the number of 

households, floorspace, and energy consumption have shown modest growth since 1990, averaging 

increases of 0.1%, 0.2%, and 0.1% per year, respectively. The share of apartments for these three 

indicators declined by 0.3%, 0.8%, and 0.4% and those of mobile home declined by 0.5%, 0.4%, and 0.4%

per year, respectively. Because energy intensity across building type varies, changes in the composition 

of building types have the potential to affect the aggregate energy intensity.
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 4

Figure 4. Household energy consumption intensity by housing type: 1990 and 2009 

and percent change, 1990-2009

Source: Computed from Natural Resources Canada 2011, Tables 20, 24, 39, 42, 45, and 48.
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Regional distribution 

In this analysis, six Canadian geographical regions are considered: Atlantic, Quebec, Ontario, Manitoba 

and Saskatchewan, Alberta, and British Columbia and Territories. Households were not equally 

distributed across the regions. More than 62% of the households were located in Ontario and Quebec 

over the 19-year period. In 2009, 36.9% of households were located in Ontario, 25.3% in Quebec, 13.8% 

in British Columbia and Territories, 10.3% in Alberta, 7.2% in Atlantic, and 6.5% in Manitoba and 

Saskatchewan. Between 1990 and 2009, household shares shifted to Alberta, British Columbia and 

Territories, and slightly to Ontario (Figure. 5). This shift has implications for aggregate energy intensity 

because energy intensity per square foot and per household are higher in Alberta and lower in British 

Columbia and Territories than in other regions (Figure. 6).

Figure 5. Percent change in distribution of housing by region, 1990-2009

Source: Computed from Natural Resources Canada 2011, regional Table 14.
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Figure 6. Household energy consumption intensity by regions, 2009 and percent change, 1990-2009

Source: Computed from Natural Resources Canada 2011, regional Tables 1 and 14.

In 2009, Quebec and Ontario accounted for about 60% of total Canadian household energy 

consumption. Because the changes in distribution of households in these two regions are less 

pronounced, the impact of change in regional distribution should not be expected to be highly 

significant. However, energy intensities per square foot and per household have changed over the 19 

years of study.

Size effect

Over the 19-year period, aggregate average floorspace per household grew by about 9%. During the 

same time period, there were wide variations in the average floorspace growth across the housing types 

and regions (Figure 7). Average size of single-family homes grew faster than other housing types, and 

single-family homes were the most prevalent type of housing unit. The average size of homes in the 
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 7

Atlantic region increased more than three times faster than the average size of homes in Ontario (Figure 

7).

Figure 7. Growth in average floorspace per household by housing types and regions, 1990 to 2009

Source: Computed from Natural Resources Canada 2011, regional Tables 1 and 24.

Weather effects 

Weather is a key factor driving annual fluctuations in energy use for space heating and cooling demand. 

There were variations in weather across time and regions. Overall, the winter and summer of 2009 were 

colder than during 1990. The average heating degree day index (HDD) was 4.7% higher, while the 

average cooling degree day (CDD) was 11.6 % lower.7

 Thus, weather effects should be included in the 

decomposition analyses.

 7 The HDD (CDD) index is a measure of how cold (hot) a year was relative to normal. The HDD (CDD) normal refers to a weighted 

average of the 1951 to 1980 HDDs (CDDs) observed in a number of weather stations in Canada (NRCan 2011).
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Fuel source change

The mix of household energy sources has changed over the 19-year period. In 1990, site electricity 

accounted for 36.5% of total site energy consumption, and natural gas accounted for 41.2%. In 2009, the 

share of electricity increased to 40.6%, and the natural gas share increased to 46.4% (Figure 8). 

Although the share of electricity, natural gas, and wood consumption increased consistently over this 

period, natural gas remained the main household fuel (Figure 8). There were differences across the 

regions. Electricity accounted for major shares of energy consumption in Quebec throughout this period 

and since 1995 in the Atlantic region, while natural gas was the main source of energy consumption in 

all other regions.

Figure 8. Fuel shares of total site energy in Canadian households 1990, 2001, and 2009 and percent 

change, 1990-2009

Source: Computed from Natural Resources Canada 2011, national Tables 27, 33, 34, and 37.
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The share of households using natural gas across all end uses increased between 1990 and 2009, 

however the increase in natural gas consumption was relatively modest for the main end uses—space 

heating and water heating (Table 1 and Figure 9). The growth in natural gas consumption was stronger 

for appliances—ranges and clothes dryers. However, in 2009 appliances accounted for about 1% of total

natural gas consumption, while space heating accounted for more than 70% of household natural gas 

consumption.

Table 1. Per-household stocks of natural gas appliances and other end usesa

, 1990, 2001, and 2009

1990 2001 2009

Clothes Dryer 0.02 0.03 0.03

Range 0.04 0.06 0.09

Heating Systems 0.46 0.49 0.49

Water Heating 0.44 0.49 0.51

Note: aThe ratio of the number of natural gas appliances (end uses) to the total number of households.

Source: Computed from NRCan 2011, national Tables 20, 27, 33 and 37.

Figure 9. Percent change in household natural gas consumption between 1990 and 2009 and 

distribution of natural gas consumption in 2009 by end use

Source: Computed from Natural Resources Canada 2011, national Tables 27, 33, 34, and 37.
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With the exception of water heating, total electricity consumption for all end uses increased between 

1990 and 2009 (Figure 10). Space cooling electricity had the largest growth over the 19-year period, but 

it accounted for only 3.0% of household electricity consumption in 2009. Despite the increase in per 

household stocks for most appliances and end uses (Table 2), electricity consumption per household 

decreased between 1990 and 2009. This decrease was partially affected by per unit energy efficiency of 

most equipment and appliances, which improved significantly over this period.

Figure 10. Percent change in household electricity consumption between 1990 and 2009 and 

distribution of electricity consumption in 2009 by end use

Source: Computed from Natural Resources Canada 2011, national Tables 1, 5, 6, 7, 14, and 17.
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Table 2. Per-household stocks of selected electrical appliances and end usesa, 1990 and 2009

1990 2001 2009

Refrigerator 1.2 1.2 1.3

Freezer 0.6 0.6 0.5

Dishwasher 0.4 0.5 0.6

Clothes washer 0.7 0.8 0.8

Clothes dryer 0.7 0.8 0.8

Range 0.9 0.9 0.9

Other Appliancesb 10.1 13.4 15.9

Central air conditioning 0.1 0.2 0.3

Room air conditioning 0.1 0.1 0.2

Water heating 0.6 0.5 0.5

Space heating (electric baseboard) 0.3 0.3 0.3

Space heating (heat pump) 0.02 0.04 0.05

Note: aThe ratio of the number of electrical appliances (end uses) to the total number of households. b

Includes small appliances such as microwaves, televisions, cable boxes, video cassette recorders, stereo systems, and 

computers. 

Source: Computed from NRCan 2011, national Tables 20, 27, 33, 34, and 37.

This paper does not consider a separate decomposition by the fuel mix used by households, although 

intensity effects are expected to change by fuel type. In the absence of data on the number of 

households using natural gas and fuel consumption by type of housing, separate decompositions for 

electricity consumption at the national level are provided in Appendix A to show the fuel-specific 

characteristics.

Results 

The following section presents several decompositions of changes in energy consumption for Canadian 

households. First the changes for the national and regional levels for the 1990-to-2009 period are 

analyzed. Then similar results are discussed for sub-periods split at 2001, the year in which ENERGY 

STAR was introduced in Canada. 

Decomposition of effects for total energy 1990-2009

National 

Figure 11 shows the national results for the 1990-to-2009 period when household energy consumption 

increased by 10.4%. The increase in the number of households was the main driver of the increase in 

energy consumption, followed by growth in the average size of buildings. The decomposed household 

effect, 30.4%, is the same as the aggregate effect, but the decomposed effect of floorspace per 

household is 8.4% compared with 8.9% growth in aggregate floorspace per household. This is the result 

of changes in housing-type mix and regional distributions.

The main offsetting factor was the estimated 32.1% decline in energy intensity per square foot. The 

decline in the decomposed intensity estimate was more than the 28.9% estimated decline in the 
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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 12

aggregate intensity. Aggregate intensity changes are influenced by intensity changes in each region and 

housing type as well as by changes in the regional distribution, housing-type mix, and weather.

Energy intensity per square foot was also affected by other factors such as improvements in energy 

efficiency of buildings and fuel prices, which are not considered in our analysis. Various energy efficiency 

standards for residential equipment became effective particularly after 1995.8

 Besides mandated 

minimum efficiency standards, technologies have also improved over the 19-year period. Other 

programs such as ENERGY STAR, voluntary and mandatory energy labeling, and promotional programs 

have resulted in household usage of more efficient equipment and appliances. 

The weather effect was positive, increasing 2009 consumption relative to 1990 by 2.7% (Figure 11). The 

winter and the summer of 2009 were colder than in 1990; the net weather effect was an overall 

increase in energy use over the 19-year period. Similarly, the housing type mix and the change in 

regional distribution of households acted to increase energy consumption by 0.6% and 0.3%, 

respectively.

Households consumed 1.35 quadrillion Btu of energy in 2009. Had energy intensity per square foot 

remained at the 1990 level, households would have instead used an additional 0.4 quadrillion Btu of 

energy. This amount of avoided energy use is equivalent to the 2009 household total energy 

consumption in the Quebec, Manitoba, and Saskatchewan regions. 

 8 NRCan has promoted energy efficiency since the late 1970s. Canada’s appliance efficiency program was initiated in 1978 by 

introducing the EnergyGuide label, which required manufacturers of major appliances to report the monthly energy 

consumption for each model (NRCan accessed 2012). The 1992 Energy Efficiency Act, the first comprehensive law on energy 

efficiency, became effective in 1995. It covered more than 30 products including space heating and cooling equipment, and 

water heating (Shui and Evans 2009). The ENERGY STAR program was introduced in Canada in 2001. Since 2002, the number of 

items eligible for the ENERGY STAR label has significantly increased (IEA 2009).
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Figure 11. Decomposition of change in total energy consumption, 1990-2009

Source: Computed from Natural Resources Canada 2011, national and regional Table 1.

Regional 

Table 3 summarizes the decomposition of effects at the regional level for the 1990-to-2009 period. 

There were significant variations across the regions. Total consumption in Alberta, British Columbia and 

territories, Quebec, and Ontario increased over the 19-year period, while consumption decreased in the 

Atlantic region and Manitoba and Saskatchewan. The increase in total consumption in Quebec and 

Ontario (the two regions with the highest energy consumption) was below the national level. British 

Columbia, which had the lowest energy consumption per household over the 19-year period, had the 

second-largest growth in energy consumption, mainly because of rapid growth in the number of 

households and the increase in the average floorspace. The change in the mix of housing types had 
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greater effects in British Columbia and Territories, Quebec, and Alberta. The main reducing factor in all 

regions was energy intensity, which varied widely across the regions. It ranged from a decline of 25.4% 

in Manitoba and Saskatchewan to a decline of 54.3% in the Atlantic region. Similar to national analysis 

for the total interval, the decline in the decomposed intensity estimates for all regions was more than 

the decline from the aggregate intensity estimates.

Table 3. Decomposition of total energy by regions, 1990-2009

Atlantic Quebec Ontario

Manitoba and 

Saskatchewan Alberta

British Columbia and 

Territories

percent change

Total Change -14.5 8.5 7.7 -2.5 32.0 23.5

Housing Effect 21.1 28.3 31.0 13.4 42.1 39.1

Housing-Type Effect 0.02 1.8 0.7 -0.1 1.5 -2.2

Square Foot per 

Household

17.0 4.4 5.3 5.6 14.5 16.5

Intensity -54.3 -28.9 -32.1 -25.4 -28.5 -30.9

Weather 1.7 2.9 2.9 3.9 2.5 1.0

Source: Computed from NRCan 2011, national and regional Table 1.

Decomposition of effects for total energy 1990-2001 and 2001-2009 

National

To understand the changes in energy consumption over the 19-year period, the 1990-2001 and 2001-

2009 sub-periods were examined separately. The year 2001 was primarily selected because ENERGY 

STAR appliances were first introduced into the Canadian market during this time. Figure 12 summarizes 

the decomposition of effects at the national level for the two sub-periods. Growth in energy 

consumption was significantly different between the two periods (Figure 12). The increase in energy 

consumption for 2001-2009 was 6.8%, nearly twice the change for 1990-2001. From 2001 to 2009, 

although energy intensity was even lower than the previous sub-period, the average size of a home 

grew at more than three times the rate of the 1990-2001 period. However, the increase in energy 

consumption from housing units, the average size of a home, housing-type mix, region, and weather 

effects were more than offset by the decline in energy intensity.9

The year 2001 was warm relative to 1990 and 2009. Comparing 1990 with 2001, the weather effect 

offset energy consumption growth. Comparing 2001 with 2009, the weather effect was positive because 

space heating requires more energy than cooling.

 9 The change in intensity during the two sub-periods could have also been affected by energy prices. Retail indices of natural 

gas prices increased by more than 130% during 1990-2001 and declined by 3.9% during 2001-2009. While retail indices of 

electricity prices increased by 35.2% and 24.0%, respectively (computed from International Energy Agency 2011, Table 4).
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Figure 12. Decomposition of total energy consumption, 1990-2001 and 2001-2009

Source: Computed from Natural Resources Canada 2011, national and regional Table 1.

Regional

Growth in consumption was significantly different between the two periods across the regions (Table 4). 

With the exception of Quebec and Manitoba and Saskatchewan, the decline in percentage change in 

intensity was faster during the latter sub-period than during the prior sub-period. The Atlantic region 

had the highest intensity effect during both periods, with declines of 24.8% and 29.5%, respectively. 

Weather effects were in the same direction in all regions during both sub-periods, but the effects were 

substantially stronger in Alberta and in Manitoba and Saskatchewan during 2001-2009. There were also 

variations across regions and sub-periods with respect to the number of housing and average size 

effects. The effect of change in the mix of housing types in the 1990-2001 sub-period was about twice 

that in the 2001-2009 sub-period for British Columbia and Territories, Quebec, Ontario, and Alberta.
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Table 4. Decomposition of total energy by regions, 1990-2001 and 2001-2009

Atlantic Quebec Ontario

Manitoba and 

Saskatchewan Alberta

British Columbia 

and Territories

percent change

1990-

2001

2001-

2009

1990-

2001

2001-

2009

1990-

2001

2001-

2009

1990-

2001

2001-

2009

1990-

2001

2001-

2009

1990-

2001

2001-

2009

Total 

Change

-8.4 -6.1 -1.2 9.7 5.0 2.7 -8.3 5.8 13.4 18.7 14.4 9.1

Housing 

Effect

13.1 8.0 16.9 11.4 18.6 12.4 5.1 8.4 22.0 20.1 25.0 14.1

Housing 

Type 

Effect

 0.0 0.02 1.2 0.6 0.4 0.2 -0.1 -.02 1.0 0.5 -1.5 -0.7

Square 

Foot per 

Household

 4.1 12.8 -1.4 5.8 1.8 3.6 2.2 3.4 2.9 11.5 5.1 11.4

Intensity -24.8 -29.5 -15.6 -13.3 -13.8 -18.3 -13.2 -12.2 -8.5 -20.0 -13.2 -17.7

Weather -0.8 2.5 -2.3 5.2 -1.9 4.8 -2.4 6.3 -4.0 6.6 -1.0 2.0

Source: Computed from Natural Resources Canada 2011, national and regional Table 1.
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Conclusion 

Buildings accounted for 30.5% of total energy use in Canada in 2009, with the residential sector 

responsible for more than 54.5% of buildings energy consumption. Natural gas followed by electricity 

were the main sources of energy consumption over the period of study; natural gas remained the main 

household energy source. The increasing importance of natural gas and electricity in residential energy 

consumption is mainly a reflection of the increase in the use of natural gas for appliances (water 

heating, space heating) and new uses for electricity, especially household electronics.

Providing a better understanding of how structural, activity, weather, and intensity factors have 

impacted Canadian residential energy consumption yields insight into how this significant portion of 

Canada’s total energy use has changed and may change in the future. 

The national and regional results indicated that the increase in the number of households was the main 

cause of increase in energy consumption, followed by growth in the average size of buildings.10 The 

results further illustrated that over the total interval and for the 2001-2009 sub-period, the combined 

effect of housing type, region, and weather led to increases in the amount of decomposed intensity 

change relative to what would have been estimated based on energy intensity calculated at the 

aggregate level. Also, the change in intensity was the dominant reducing effect for energy consumption. 

The reduction in national energy consumption accounted for by improvement in energy intensity was 

more than the 2009 household energy consumption in the Quebec and Manitoba and Saskatchewan 

regions.

The national level analysis of sub-periods 1990-2001 and 2001-2009 indicated that the latter sub-period 

illustrated greater intensity decline. This could be the impact of improvements in energy efficiency 

standards and the introduction of new programs such as the ENERGY STAR program. The Atlantic, 

Ontario, Alberta, and British Columbia and Territories followed the same trend, where the declines in 

energy intensities in these regions were higher in the post-2001 period.

The regional analysis of sub-periods also showed that the change in housing type mix was almost twice 

as high during the 1990-2001 sub-period as in the 2001-2009 sub-period in Quebec, Ontario, and British 

Columbia.

 10 Except for Quebec during the 1990-2001 sub-period, where the growth in average floorspace was a decline of 1.4 percent.
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References

Ang, B.W., Liu, F. L., Chew E. P. 2003. Perfect Decomposition Techniques in Energy and Environmental 

Analysis. Energy Policy 31(14), 1561-1566.

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A Refined Divisia Index Method. The Energy Journal 18(3) 59-74.

Ang, B. W., 2005. The LMDI Approach to Decomposition Analysis: A Practical Guide. Energy Policy 33(7), 

867-871.

Boyd, G. A., Roop, J. M., 2004. A Note on the Fisher Ideal Index Decomposition for Structural Change in 

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https://oee.nrcan.gc.ca/publications/statistics/handbook11/pdf/handbook11.pdf

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http://www.nrcan.gc.ca/energy/products/energystar/about/12529

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U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 19

Appendix A. Additional Decomposition Results and Comparison of 

Aggregate and Decomposed Intensity 

Table A1. Preliminary analysis of decomposition of total electricity consumption without type effect

Total 

Change

Housing 

Effect

Region 

Effect

Square Foot 

per Household Intensity Weather

percent change

1990-2001 7.7 17.9 -0.3 1.5 -11.3 -0.1

2001-2009 13.3 12.5 -0.5 6.8 -6.6 1.2

1990-2009 21.1 30.4 -0.8 8.3 -18.0 1.1

Source: Computed from Natural Resources Canada 2011.

Note: All households are assumed to use electricity. Thus, the housing effect is similar to the national analysis of 

total site energy consumption.

Table A2. Comparison of decomposed and aggregate intensity

1990-2001 2001-2009 1990-2009

percent change

Aggregate 

Intensity

Decomposed 

Intensity

Aggregate 

Intensity

Decomposed 

Intensity

Aggregate 

Intensity

Decomposed 

Intensity

Atlantic -25.4 -24.8 -26.9 -29.5 -52.4 -54.3

Quebec -17.7 -15.6 -8.0 -13.3 -25.7 -28.9

Ontario -15.4 -13.8 -13.2 -18.3 -28.6 -32.1

Manitoba and 

Saskatchewan

-15.6 -13.2 -6.1 -12.2 -21.7 -25.4

Alberta -11.8 -8.5 -13.5 -20.0 -25.3 -28.5

British Columbia Territories -14.3 -13.2 -15.9 --17.7 -30.2 -30.9

Canada -16.4 -14.4 -12.6 -17.7 -28.9 -32.1

Source: Computed from Natural Resources Canada 2011. 

Note: a

percentage changes are logarithmic.
June 2015

U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 20

Appendix B. Decomposition Methodology

The decomposition method used in this study is based on Hojjati and Wade (2012). They distinguished 

among four main factors affecting household energy use within each region: activity, structure, energy 

intensity, and seasonal variations in weather. Their decomposition analyses follow a well-known method 

introduced by Ang & Choi (1997) known as the log mean Divisia method (LMDI-II). 

Accordingly, the change in total energy consumption for a decomposition including four types of homes 

for each region can be expressed as follows: 11















 =













 ∑= 0

4

0 1

ln ln

H

H

z

E

E t

i

i

t number of households effect12

∑= 















+

4

1 0

ln

i i

it

i S

S

z housing type effect

∑= 















+

4

1 0

ln i i

it

i F

F

z size effect (square foot per household) 

∑= 















+

4

1 0

ln

i i

it

i W

W

z weather effect 

∑= 















+

4

1 0

ln

i i

it

i I

I

z intensity effect (energy consumption per square foot) 

Where

= Et total energy consumption at year t;

= E0 total site energy consumption at year 0;

i = represents the 4 types of housing;

 11 The national results are obtained using an LMDI-II analysis that combines four regions. 12 At the national level, the region effect is the difference between the growth in the aggregate number of buildings and the 

decomposed number of buildings effect from the 2-stage LMDI-II analysis for combined regions.
June 2015

U.S. Energy Information Administration | Issues in International Energy Consumption Analysis: Canadian Energy Demand 0

i z = the log-mean weight13 for the i

th housing type;

Ht = total number of households at year t;

0 H = total number of households at year 0;

 it

S = share of housing type i at year t;

i0 S = share of housing type i at year 0;

 it

F = average floorspace of housing type i at year t; 

i0

F = average floorspace of housing type i at year 0;

it

W = the ratio of energy use to weather-adjusted energy use of housing type i at year; 

i0 W = the ratio of energy use to weather-adjusted energy use of housing type i at year 0;

 = it

I average energy per square foot of housing type i at year t; 

= i0I average energy per square foot of housing type i at year 0.

 

13 It is specified as ( )

















− = =

0

0

0

ln

( , )

i

it

it i

i i it

e

e

e e

z L e e , 

Where 

 it e = represents the share of energy in the i

th housing type at year t;

 i0 e = represents the share of energy in the i

th housing type at year 0;

 ( , ) i0 it L e e = the log-mean weight function . 

 The final weights ( *

i z ) are normalized to sum to one

∑=

= 4

1

0

* 0

( , )

( , )

i

i it

i it

i

L e e

L e e

z .