Although a large number of energy decomposition analysis studies have been reported in the last 25 years, there is still a lack of consensus among researchers and analysts as to which is the "best" decomposition method. As the usefulness of decomposition analysis has now been firmly established in energy studies and its scope for policymaking has expanded greatly, there is a need to have a common understanding among practitioners and consistency on the choice of decomposition methods in empirical studies. After an overview of the application and methodology development of decomposition analysis, the paper attempts to address the above-mentioned issues and provide recommendations. (C) 2003 Elsevier Science Ltd. All rights reserved.