A decomposition method is used to divide a change in manufacturing ene
rgy consumption into three effects: output growth, energy intensity an
d structural change, using energy-balance tables and manufacturing sta
tistics for 26 selected countries in the period 1973-1980 and 1980-198
8. The findings seem to confirm the decoupling of energy and output in
developed countries in contrast to the presence of a positive relatio
nship between industrial output and energy consumption in developing c
ountries. Moreover, rapid growth in manufacturing output, coupled with
energy-intensive industrialization, seems to be the dominant factor i
n increasing manufacturing energy consumption in developing countries,
while improved energy intensity and less energy-intensive structural
change seem to exert a more pronounced dampening impact on manufacturi
ng energy consumption in developed countries than in developing countr
ies.