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Decomposition of Aggregate Energy and Gas Emission Intensities for Industry: A Refined Divisia Index Method

B. W. Ang and Ki-Hong Choi

Year: 1997
Volume: Volume18
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol18-No3-3
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Abstract:
Several methods for decomposing energy consumption or energy-induced gas emissions in industry have been proposed by various analysts. Two commonly encountered problems in the application of these methods are the existence of a residual after decomposition and the handling of the value zero In the data set. To overcome these two problems, we modify the often used Divisia index decomposition method by replacing the arithmetic mean weight function by a logarithmic one. This refined Divisia index method can be shown to give perfect decomposition with no residual. It also gives converging decomposition results when the zero values in the data set are replaced by a sufficiently small number. The properties of the method are highlighted using the data of the Korean industry.



Decomposition of Aggregate CO2 Emissions in the OECD: 1960-1995

J. W. Sun

Year: 1999
Volume: Volume20
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol20-No3-7
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Abstract:
This paper analyzes the change of aggregate CO2 emissions in the, OECD from 1960 to 1995 based on a complete decomposition approach. The, study indicates that developed countries have achieved a considerable decrease in their CO2 emissions mainly due to improved energy efficiency and fuel switching. However, some member countries of the OECD have found it difficult to achieve the environmental targets set at Rio de Janeiro in 1992, and should reconsider their energy policies in light of information given at the UN Climate, Change Conference in Kyoto.



The Determinants of Sulfur Emissions from Oil Consumption in Swedish Manufacturing Industry, 1976-1995

Henrik Hammar and Asa Lofgren

Year: 2001
Volume: Volume22
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol22-No2-5
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Abstract:
Using a structural decomposition analysis, we analyze the causes of a reduction in sulfur emissions originating from oil consumption in the manufacturing industry in Sweden during 1976-1995. The Swedish case is of interest since Sweden has pursued an ambitious policy to combat the precursors of acid rain. Between 1989 and 1995, about 59 percent of the reduction in sulfur emissions from manufacturing can be attributed to the announcement and implementation of a Swedish sulfur tax. Two thirds of the reduction during 1976-1995 is captured by substitution between oil and other energy sources. The price of electricity also has had a significant effect via substitution between oil and electricity. Furthermore, one third of the reduction during 1976-1995 is explained by decreased energy intensity.



How Malleable are the Greenhouse Gas Emission Intensities of the G7 Nations?

Chris Bataille, Nic Rivers, Paulus Mau, Chris Joseph, and Jian-Jun Tu

Year: 2007
Volume: Volume 28
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol28-No1-7
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Abstract:
Why do countries greenhouse gas (GHG) intensities differ? How much of a country's GHG intensity is set by inflexible national circumstances, and how much may be altered by policy? These questions are common in climate change policy discourse and may influence emission reduction allocations. Despite the policy relevance of the discussion, little quantitative analysis has been done. In this paper we address these questions in the context of the G7 by applying a pair of simple quantitative methodologies: decomposition analysis and allocation of fossil fuel production emissions to end-users instead of producers. According to our analysis and available data, climate and geographic size both inflexible national characteristics can have a significant effect on a country's GHG intensity. A country's methods for producing electricity and net trade in fossil fuels are also significant, while industrial structure has little effect at the available level of data disaggregation.



Decomposing aggregate CO2 emission changes with heterogeneity: An extended production-theoretical approach

H. Wang, B.W. Ang, and P. Zhou

Year: 2018
Volume: Volume 39
Number: Number 1
DOI: 10.5547/01956574.39.1.hwan
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Abstract:
Quantifying the driving forces behind changes in aggregate CO2 emissions provides valuable information for supporting policy making in addressing climate change. We study this issue using the production-theoretical decomposition analysis (PDA) technique. Within a production theory framework, PDA examines CO2 emission changes from the perspective of productive efficiency. Although regional and sectoral heterogeneities in energy consumption and emission patterns prevail, they have not been taken into account in the PDA literature. By incorporating relevant decomposition methods, this study proposes an extended PDA approach to resolving the heterogeneity issue. The approach is applied to examine China's aggregate CO2 emission changes in its 11th five-year plan period (2005- 2010). By accounting for the heterogeneities, detailed results at the regional and sectoral levels are generated and further discussions presented.



Addressing Key Drivers of Regional CO2 Emissions of the Manufacturing Industry in Japan

Ken’ichi Matsumoto, Yosuke Shigetomi, Hiroto Shiraki, Yuki Ochi, Yuki Ogawa, and Tomoki Ehara

Year: 2019
Volume: Volume 40
Number: The New Era of Energy Transition
DOI: 10.5547/01956574.40.SI1.kmat
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Abstract:
This study investigated the factors behind the historical changes in CO2 emissions of the Japanese manufacturing industry as a whole and by sector at the prefectural level. We decomposed the changes of CO2 emissions in 47 prefectures from 1990 to 2013 into four factors (carbon intensity, energy intensity, structure, and activity effects) using the logarithmic mean Divisia index method. We found that energy intensity, structure, and activity effects were more influential in the changes of emissions than the carbon intensity effect, although the most influential factor varied by prefecture. Among the eight considered industrial sectors of Japan's manufacturing industry, the changes in the chemistry and metal sectors were particularly complex. Thus, improvements of the energy intensity and production in these two sectors should be prioritized. We also conducted detailed analysis of the decomposed factors in three selected prefectures based on cluster analysis.



Does Global Value Chain Participation Decouple Chinese Development from CO2 Emissions? A Structural Decomposition Analysis

Hui Wang, Chen Pan, B.W. Ang, and Peng Zhou

Year: 2021
Volume: Volume 42
Number: Number 2
DOI: 10.5547/01956574.42.2.hwan
View Abstract

Abstract:
Decoupling economic activities and CO2 emissions is central to achieving the climate goals of China. The country�s participation in global value chains has profound impacts on its economy as well as CO2 emissions. Assessing the impacts is fundamental to identifying strategies to decouple China�s development from emissions. To this end, we adopt the multi-region structural decomposition analysis technique to quantify the global value chain determinants of China�s CO2 emission intensity from both the production and consumption perspectives. It is found that China�s decoupling from emissions in 2007�2012 was driven mainly by global value chains. Nonetheless the decoupling slowed down after the global financial crisis. In particular, the value chains within China played a more important role in greening Chinese economy. Despite the considerable improvement in 2007�2012, global value chains remained the primary obstacle to environmental sustainability of China. More detailed results with policy implications are presented.





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