Abstract
Decomposition analysis is a method that analyzes the effects of factors which lead to the growth of energy consumption. This paper introduces the vector variables to the method of decomposition analysis in order to show the change of energy consumption in the transport sector in recent years in Japan. It is found that the travel demand of passengers has increased successfully every year and has crucially and steadily affected the transport energy consumption. GDP is another factor that caused great energy consumption during Japan’s high economic growth period while it is also effective to reduce energy intensity and the average travel distance. According to the result, corresponding policy such as encouraging environmental vehicles is proposed.