Carbon emissions , logarithmic mean Divisia index decomposition , WIOD database
Abstract:
This study analyzes carbon emission trends and drivers in 40 major economies using the WIOD database, a harmonized
and consistent dataset of input-output table time series accompanied by environmental satellite data. We use
logarithmic mean Divisia index decomposition to (1) study trends in global carbon emissions between 1995 and 2009,
(2) attribute changes in carbon emissions to either influences of economic activity, changes in technology, changes in
the structure of the economy, alterations of the fuel mix, or changes in carbon intensities of specific fuel types, and (3)
highlight sectoral and regional differences. We first find that heterogeneity in each country is higher than heterogeneity
in sectors. This finding might lead to the conclusion that, in order to abate CO2, structural conditions in sectors prevail
over regional circumstances. Regarding our results of the decomposition analysis, the drivers of changes in carbon
emissions are very heterogeneous. Among the world’s top ten emitters, in only three countries – China, Germany
and Canada – the main driver of an improved emissions performance was technological change. Conversely, in Japan
and Australia structural change of the economy contributed to less severe increases of emissions. The deployment
of cleaner energy sources had a positive in some, mainly developed, economies. Moreover, our results for the global
level suggest a general move towards more efficient means of production.
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