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Inequality in Energy Intensity in the EU-28: Evidence from a New Decomposition Method

Luigi Grossi and Mauro Mussini

Year: 2017
Volume: Volume 38
Number: Number 4
DOI: 10.5547/01956574.38.4.lgro
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Abstract:
This paper investigates inequality in energy intensity between EU-28 member countries over the 2007-2012 period. Inequality in energy intensity is measured by using the Zenga inequality index. The analysis is carried out by measuring inequality from the bottom of the energy intensity distribution to the top. This approach enables to identify the most unequal portions of the energy intensity distribution. To provide information on the causes of inequality at every point of the distribution, we show that inequality can be broken down into three components explaining the roles played by energy transformation, final energy intensity and their interaction in determining inequality in energy intensity. This decomposition reveals the impact of each component of inequality from the bottom of energy intensity distribution to the top. Results show that final energy intensity plays a major role in explaining inequality in the energy intensity distribution. The interaction component explains that EU-28 countries with low energy intensity are more efficient in energy transformation and less energy-intensive in end-use sectors than EU-28 countries with high energy intensity. The energy transformation component is higher when measuring inequality between the countries at the bottom of the distribution and those in the rest of the distribution, suggesting that disparities in energy transformation efficiency play an important role in determining inequality in energy intensity between the least energy-intensive countries and the other countries. The high inequality at the top of the distribution is due to the lower efficiency in energy transformation in the most energy-intensive countries, which reinforces the effect of disparity in final energy intensity between the countries at the top of the distribution and the other countries.



Carbon Emissions in the U.S.: Factor Decomposition and Cross-State Inequality Dynamics

Panos K. Pouliasis, Nikos C. Papapostolou, Michael N. Tamvakis, and Ioannis C. Moutzouris

Year: 2024
Volume: Volume 44
Number: Number 6
DOI: 10.5547/01956574.44.6.ppou
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Abstract:
This paper examines the determinants of inequality in the distribution of CO2 emissions across U.S. regions. We implement a factorial decomposition of CO2 per capita based on extended Kaya factors, that is, carbon intensity of fossil fuel consumption, energy mix, energy intensity of GDP, economic growth in terms of labor productivity and employment rate. Results reveal that U.S. states display marked differences in most factors. We identify energy intensity as the main source of emissions inequality. Based on the within and between group inequality components we also explore the effect of geographical, geological, climatic and human development partitions of U.S. states' groups. Findings indicate that the within-group inequality had been the main contributor to the whole inequality. Finally, some economic policy implications are also discussed; explaining the unequal distribution of emissions is vital to establish differentiated targets and work towards successful mitigation proposals.





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