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Decomposition of energy-related CO2 emissions in Australia: Challenges and policy implications

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  • Md Shahiduzzaman
  • Allan Layton
  • Khorshed Alam

Abstract

Changes in energy-related CO2 emissions aggregate intensity, total CO2 emissions and per-capita CO2 emissions in Australia are decomposed by using a Logarithmic Mean Divisia Index (LMDI) method for the period 1978ó2010. Results indicate improvements in energy efficiency played a dominant role in the measured 17% reduction in CO2 emissions aggregate intensity in Australia over the period. Structural changes in the economy, such as changes in the relative importance of the services sector vis-à-vis manufacturing, have also played a major role in achieving this outcome. Results also suggest that, without these mitigating factors, income per capita and population effects could well have produced an increase in total emissions of more than 50% higher than actually occurred over the period. Perhaps most starkly, the results indicate that, without these mitigating factors, the growth in CO2 emissions per capita could have been over 150% higher than actually observed. Notwithstanding this, the study suggests that, for Australia to meet its Copenhagen commitment, the relative average per annum effectiveness of these mitigating factors during 2010ó2020 probably needs to be almost three times what it was in the 2005ó2010 periodôa very daunting challenge indeed for Australiaùs policymakers.

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  • Md Shahiduzzaman & Allan Layton & Khorshed Alam, 2015. "Decomposition of energy-related CO2 emissions in Australia: Challenges and policy implications," Economic Analysis and Policy, Elsevier, vol. 45(c), pages 100-111.
  • Handle: RePEc:eee:ecanpo:v:45:y:2015:i:c:p:100-111
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    Cited by:

    1. Awaworyi Churchill, Sefa & Inekwe, John & Ivanovski, Kris & Smyth, Russell, 2020. "The Environmental Kuznets Curve across Australian states and territories," Energy Economics, Elsevier, vol. 90(C).
    2. Qi, Tianyu & Weng, Yuyan & Zhang, Xiliang & He, Jiankun, 2016. "An analysis of the driving factors of energy-related CO2 emission reduction in China from 2005 to 2013," Energy Economics, Elsevier, vol. 60(C), pages 15-22.
    3. Lei Wen & Fei Yan, 2018. "Regional differences and influencing factors in the CO2 emissions of China’s power industry based on the panel data models considering power-consuming efficiency factor," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(5), pages 1987-2007, October.
    4. Corey J. A. Bradshaw & Barry W. Brook, 2016. "Implications of Australia's Population Policy for Future Greenhouse Gas Emissions Targets," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 3(2), pages 249-265, May.
    5. Jaruwan Chontanawat & Paitoon Wiboonchutikula & Atinat Buddhivanich, 2020. "Decomposition Analysis of the Carbon Emissions of the Manufacturing and Industrial Sector in Thailand," Energies, MDPI, vol. 13(4), pages 1-23, February.
    6. Moutinho, Victor & Madaleno, Mara & Inglesi-Lotz, Roula & Dogan, Eyup, 2018. "Factors affecting CO2 emissions in top countries on renewable energies: A LMDI decomposition application," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 605-622.
    7. Yang, Jing & Song, Kaihui & Hou, Jian & Zhang, Peidong & Wu, Jinhu, 2017. "Temporal and spacial dynamics of bioenergy-related CO2 emissions and underlying forces analysis in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1323-1330.
    8. Song, Yi & Huang, Jian-Bai & Feng, Chao, 2018. "Decomposition of energy-related CO2 emissions in China's iron and steel industry: A comprehensive decomposition framework," Resources Policy, Elsevier, vol. 59(C), pages 103-116.
    9. Sultana, Nahid & Rahman, Mohammad Mafizur & Khanam, Rasheda & Islam, K.M. Zahidul, 2022. "The causative factors of environmental degradation in South Asia," Journal of Asian Economics, Elsevier, vol. 79(C).
    10. Raei, Hasan & Maleki, Abbas & Farajzadeh, Zakariya, 2024. "Analysis of energy policy reform in Iran: Energy and emission intensity changes," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1535-1557.
    11. Shahiduzzaman, Md & Layton, Allan, 2015. "Decomposition analysis to examine Australia’s 2030 GHGs emissions target: How hard will it be to achieve?," Economic Analysis and Policy, Elsevier, vol. 48(C), pages 25-34.
    12. Leal, Patrícia Alexandra & Marques, António Cardoso & Fuinhas, José Alberto, 2019. "Decoupling economic growth from GHG emissions: Decomposition analysis by sectoral factors for Australia," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 12-26.
    13. Suvajit Banerjee, 2019. "Addressing the Drivers of Carbon Emissions Embodied in Indian Exports: An Index Decomposition Analysis," Foreign Trade Review, , vol. 54(4), pages 300-333, November.
    14. Suvajit Banerjee, 2021. "Addressing the carbon emissions embodied in India’s bilateral trade with two eminent Annex-II parties: with input–output and spatial decomposition analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(4), pages 5430-5464, April.
    15. Kenichi Shimamoto, 2017. "Decomposition analysis of the pollution intensities in the case of the United Kingdom," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1316553-131, January.
    16. Yang Yu & Qiuyue Kong, 2017. "Analysis on the influencing factors of carbon emissions from energy consumption in China based on LMDI method," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 88(3), pages 1691-1707, September.
    17. Shahiduzzaman, Md. & Layton, Allan, 2015. "Changes in CO2 emissions over business cycle recessions and expansions in the United States: A decomposition analysis," Applied Energy, Elsevier, vol. 150(C), pages 25-35.
    18. Israt Jahan & Guomin Zhang & Muhammed Bhuiyan & Satheeskumar Navaratnam, 2022. "Circular Economy of Construction and Demolition Wood Waste—A Theoretical Framework Approach," Sustainability, MDPI, vol. 14(17), pages 1-26, August.

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