Structural Decomposition Analysis

Structural Decomposition Analysis (SDA) is a method used to understand how changes in an economy's structure influence overall outcomes, like energy use or emissions. It breaks down complex data into different contributing factors—such as technology, consumption patterns, or industry shifts—helping identify what drives changes over time. For example, SDA can show whether increased energy consumption is due to more activity, technological changes, or other factors. This helps policymakers and analysts target specific areas for improvement, making strategies more effective in achieving desired results.