This study explores the causes of changes in energy intensity and energy use in Latvia by applying logarithmic mean Divisia index decomposition and mean-rate-of-exchange index analysis for energy sectors. Analysis on the latest data (2008-2012) reveals if any technological or structural changes have occurred during and after economic downturn in Latvia. The study explored effect of economic activity on final energy use. The results show that the reduction in energy intensity before the year 2008 can be largely attributed to decline in energy intensities within sectors, but the increase in energy intensity after the year 2008 is regarded to expansion of energy demanding sectors. (C) 2015 Elsevier Ltd. All rights reserved.