Drivers in CO₂ emissions variation: A decomposition analysis for 33 world countries

A decomposition analysis of energy related CO₂ emissions is carried out for 33 world countries. The data pertain to the period 1995-2007. The methodology used is the Index Decomposition Analysis that allows to investigate the contribution of the following factors: (i) changes in abatement technologies, fuel quality and fuel switching; (ii) changes in the structure and efficiency of the energy system; (iii) relative ranking of a country in terms of the total GDP (Gross Domestic Product) generation and (iv) changes of the country specific total economic activity. The WIOD (World Input Output Database) has been used together with Organization for the Economic Co-operation and Development (OECD) data on GDP. Results show that economic growth has been the main driving factor of energy related CO₂ emissions increase. However, in fast developing countries like India and China, an important contribution has also been the increasing role that these economies are playing in the global economic panorama. Improvements on energy efficiency have been the main element contributing to reduce the overall CO₂ emission increase in all the countries considered in this study.