IDEAS home Printed from https://ideas.repec.org/a/eee/ecolec/v193y2022ics0921800921003475.html
   My bibliography  Save this article

Sources of greenhouse gas emission reductions in OECD countries: Composition or technique effects

Author

Listed:
  • Sun, Xiaohua
  • Dong, Yan
  • Wang, Yun
  • Ren, Junlin

Abstract

Greenhouse gas, as the main pollutant of industrial production, has experienced a recent decline in OECD countries despite a substantial increase in manufacturing output. Based on the index decomposition analysis approach, changes in greenhouse gas emissions of 19 OECD countries from 2012 to 2016 are decomposed into scale, composition, and technique effects. Cross-country differences in emissions and the main sources are compared and discussed based on the data of 19 sub-industries of manufacturing. The empirical results are as follows: (1) In OECD as a whole, the total greenhouse gas emission reduction is primarily driven by composition effect rather than technique effect, while country-specific sources of emission changes are not the same. (2) The greenhouse gas emission reductions in Austria, the Czech Republic, France, Italy, Slovak Republic, and Spain own to composition effects, which is generated by the increasing share of clean sectors. (3) The greenhouse gas mitigation in Denmark, Latvia, Poland, Sweden, and the United Kingdom benefits from the technique effect, which is brought about by the technological progress in emission intensities. These findings provide significant implications for differentiated emission reduction measures for different countries.

Suggested Citation

  • Sun, Xiaohua & Dong, Yan & Wang, Yun & Ren, Junlin, 2022. "Sources of greenhouse gas emission reductions in OECD countries: Composition or technique effects," Ecological Economics, Elsevier, vol. 193(C).
    • Handle: RePEc:eee:ecolec:v:193:y:2022:i:c:s0921800921003475
    DOI: 10.1016/j.ecolecon.2021.107288
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0921800921003475
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ecolecon.2021.107288?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
    2. Joseph S. Shapiro & Reed Walker, 2018. "Why Is Pollution from US Manufacturing Declining? The Roles of Environmental Regulation, Productivity, and Trade," American Economic Review, American Economic Association, vol. 108(12), pages 3814-3854, December.
    3. Wang, Yun & Sun, Xiaohua & Guo, Xu, 2019. "Environmental regulation and green productivity growth: Empirical evidence on the Porter Hypothesis from OECD industrial sectors," Energy Policy, Elsevier, vol. 132(C), pages 611-619.
    4. Duarte, Rosa & Mainar, Alfredo & Sánchez-Chóliz, Julio, 2013. "The role of consumption patterns, demand and technological factors on the recent evolution of CO2 emissions in a group of advanced economies," Ecological Economics, Elsevier, vol. 96(C), pages 1-13.
    5. Smeets, Edward & Tabeau, Andrzej & van Berkum, Siemen & Moorad, Jamil & van Meijl, Hans & Woltjer, Geert, 2014. "The impact of the rebound effect of the use of first generation biofuels in the EU on greenhouse gas emissions: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 393-403.
    6. Wang, Zhenguo & Su, Bin & Xie, Rui & Long, Haiyu, 2020. "China’s aggregate embodied CO2 emission intensity from 2007 to 2012: A multi-region multiplicative structural decomposition analysis," Energy Economics, Elsevier, vol. 85(C).
    7. Werner Antweiler & Brian R. Copeland & M. Scott Taylor, 2001. "Is Free Trade Good for the Environment?," American Economic Review, American Economic Association, vol. 91(4), pages 877-908, September.
    8. Su, Bin & Ang, B.W., 2017. "Multiplicative structural decomposition analysis of aggregate embodied energy and emission intensities," Energy Economics, Elsevier, vol. 65(C), pages 137-147.
    9. A. Denny Ellerman & Florence Dubroeucq, 2004. "The Sources of Emission Reductions:," Working Papers EP43, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    10. Stern, David I., 2004. "The Rise and Fall of the Environmental Kuznets Curve," World Development, Elsevier, vol. 32(8), pages 1419-1439, August.
    11. Daniel L. Millimet & John A. List & Thanasis Stengos, 2003. "The Environmental Kuznets Curve: Real Progress or Misspecified Models?," The Review of Economics and Statistics, MIT Press, vol. 85(4), pages 1038-1047, November.
    12. Philippe Aghion & Antoine Dechezleprêtre & David Hémous & Ralf Martin & John Van Reenen, 2016. "Carbon Taxes, Path Dependency, and Directed Technical Change: Evidence from the Auto Industry," Journal of Political Economy, University of Chicago Press, vol. 124(1), pages 1-51.
    13. Wang, Qunwei & Wang, Yizhong & Zhou, P. & Wei, Hongye, 2017. "Whole process decomposition of energy-related SO2 in Jiangsu Province, China," Applied Energy, Elsevier, vol. 194(C), pages 679-687.
    14. Arik Levinson, 2009. "Technology, International Trade, and Pollution from US Manufacturing," American Economic Review, American Economic Association, vol. 99(5), pages 2177-2192, December.
    15. Fodha, Mouez & Zaghdoud, Oussama, 2010. "Economic growth and pollutant emissions in Tunisia: An empirical analysis of the environmental Kuznets curve," Energy Policy, Elsevier, vol. 38(2), pages 1150-1156, February.
    16. Albrizio, Silvia & Kozluk, Tomasz & Zipperer, Vera, 2017. "Environmental policies and productivity growth: Evidence across industries and firms," Journal of Environmental Economics and Management, Elsevier, vol. 81(C), pages 209-226.
    17. Grossman, G.M & Krueger, A.B., 1991. "Environmental Impacts of a North American Free Trade Agreement," Papers 158, Princeton, Woodrow Wilson School - Public and International Affairs.
    18. Raphael Calel & Antoine Dechezleprêtre, 2016. "Environmental Policy and Directed Technological Change: Evidence from the European Carbon Market," The Review of Economics and Statistics, MIT Press, vol. 98(1), pages 173-191, March.
    19. Zhang, Ming & Liu, Xiao & Wang, Wenwen & Zhou, Min, 2013. "Decomposition analysis of CO2 emissions from electricity generation in China," Energy Policy, Elsevier, vol. 52(C), pages 159-165.
    20. Jevan Cherniwchan & Brian R. Copeland & M. Scott Taylor, 2017. "Trade and the Environment: New Methods, Measurements, and Results," Annual Review of Economics, Annual Reviews, vol. 9(1), pages 59-85, September.
    21. Sorrell, Steve & Dimitropoulos, John, 2008. "The rebound effect: Microeconomic definitions, limitations and extensions," Ecological Economics, Elsevier, vol. 65(3), pages 636-649, April.
    22. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    23. Nasreen, Samia & Anwar, Sofia & Ozturk, Ilhan, 2017. "Financial stability, energy consumption and environmental quality: Evidence from South Asian economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1105-1122.
    24. Mayra Benavides & Kevin Ovalle & Carolina Torres & Tatiana Vinces, 2017. "Economic Growth, Renewable Energy and Methane Emissions: Is there an Enviromental Kuznets Curve in Austria?," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 259-267.
    25. Kaika, Dimitra & Zervas, Efthimios, 2013. "The Environmental Kuznets Curve (EKC) theory—Part A: Concept, causes and the CO2 emissions case," Energy Policy, Elsevier, vol. 62(C), pages 1392-1402.
    26. Galeotti, Marzio & Lanza, Alessandro & Pauli, Francesco, 2006. "Reassessing the environmental Kuznets curve for CO2 emissions: A robustness exercise," Ecological Economics, Elsevier, vol. 57(1), pages 152-163, April.
    27. Hille, Erik & Shahbaz, Muhammad, 2019. "Sources of emission reductions: Market and policy-stringency effects," Energy Economics, Elsevier, vol. 78(C), pages 29-43.
    28. Kofi Adom, Philip & Bekoe, William & Amuakwa-Mensah, Franklin & Mensah, Justice Tei & Botchway, Ebo, 2012. "Carbon dioxide emissions, economic growth, industrial structure, and technical efficiency: Empirical evidence from Ghana, Senegal, and Morocco on the causal dynamics," Energy, Elsevier, vol. 47(1), pages 314-325.
    29. Shi, Qian & Lai, Xiaodong, 2013. "Identifying the underpin of green and low carbon technology innovation research: A literature review from 1994 to 2010," Technological Forecasting and Social Change, Elsevier, vol. 80(5), pages 839-864.
    30. Dietzenbacher, Erik & Kulionis, Viktoras & Capurro, Filippo, 2020. "Measuring the effects of energy transition: A structural decomposition analysis of the change in renewable energy use between 2000 and 2014," Applied Energy, Elsevier, vol. 258(C).
    31. Pang, Rui-Zhi & Deng, Zhong-Qi & Hu, Jin-li, 2015. "Clean energy use and total-factor efficiencies: An international comparison," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1158-1171.
    32. Ang, B. W., 2005. "The LMDI approach to decomposition analysis: a practical guide," Energy Policy, Elsevier, vol. 33(7), pages 867-871, May.
    33. Liou, Hwa Meei, 2010. "Policies and legislation driving Taiwan's development of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(7), pages 1763-1781, September.
    34. He, Jie & Wang, Hua, 2012. "Economic structure, development policy and environmental quality: An empirical analysis of environmental Kuznets curves with Chinese municipal data," Ecological Economics, Elsevier, vol. 76(C), pages 49-59.
    35. Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
    36. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).
    37. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
    38. Hoekstra, Rutger & van den Bergh, Jeroen C. J. M., 2003. "Comparing structural decomposition analysis and index," Energy Economics, Elsevier, vol. 25(1), pages 39-64, January.
    39. Li, Hai-ling & Zhu, Xue-hong & Chen, Jin-yu & Jiang, Fei-tao, 2019. "Environmental regulations, environmental governance efficiency and the green transformation of China's iron and steel enterprises," Ecological Economics, Elsevier, vol. 165(C), pages 1-1.
    40. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
    41. Hasanbeigi, Ali & Price, Lynn & Lin, Elina, 2012. "Emerging energy-efficiency and CO2 emission-reduction technologies for cement and concrete production: A technical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6220-6238.
    42. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    43. A. Greening, Lorna & Greene, David L. & Difiglio, Carmen, 2000. "Energy efficiency and consumption -- the rebound effect -- a survey," Energy Policy, Elsevier, vol. 28(6-7), pages 389-401, June.
    44. Zhao, Min & Tan, Lirong & Zhang, Weiguo & Ji, Minhe & Liu, Yuan & Yu, Lizhong, 2010. "Decomposing the influencing factors of industrial carbon emissions in Shanghai using the LMDI method," Energy, Elsevier, vol. 35(6), pages 2505-2510.
    45. Bin Su & B. W. Ang, 2012. "Structural Decomposition Analysis Applied To Energy And Emissions: Aggregation Issues," Economic Systems Research, Taylor & Francis Journals, vol. 24(3), pages 299-317, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Adam Dominiak & Artur Rusowicz, 2022. "Change of Fossil-Fuel-Related Carbon Productivity Index of the Main Manufacturing Sectors in Poland," Energies, MDPI, vol. 15(19), pages 1-14, September.
    2. Benkraiem, Ramzi & Dubocage, Emmanuelle & Lelong, Yann & Shuwaikh, Fatima, 2023. "The effects of environmental performance and green innovation on corporate venture capital," Ecological Economics, Elsevier, vol. 210(C).
    3. Jin, Cheng & Lv, Zhiwei & Li, Zengrong & Sun, Kehan, 2023. "Green finance, renewable energy and carbon neutrality in OECD countries," Renewable Energy, Elsevier, vol. 211(C), pages 279-284.
    4. Al Mamun, Md & Boubaker, Sabri & Hossain, Md Zakir & Manita, Riadh, 2024. "Female political empowerment and green finance," Energy Economics, Elsevier, vol. 131(C).
    5. Lin, Chia-Yang & Chau, Ka Yin & Tran, Trung Kien & Sadiq, Muhammad & Van, Le & Hien Phan, Thi Thu, 2022. "Development of renewable energy resources by green finance, volatility and risk: Empirical evidence from China," Renewable Energy, Elsevier, vol. 201(P1), pages 821-831.
    6. Ozdemir, Ali Can, 2023. "Decomposition and decoupling analysis of carbon dioxide emissions in electricity generation by primary fossil fuels in Turkey," Energy, Elsevier, vol. 273(C).
    7. Hu, Xing & Yu, Shiwei & Fang, Xu & Ovaere, Marten, 2023. "Which combinations of renewable energy policies work better? Insights from policy text synergies in China," Energy Economics, Elsevier, vol. 127(PA).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shahbaz, Muhammad & Haouas, Ilham & Hoang, Thi Hong Van, 2019. "Economic growth and environmental degradation in Vietnam: Is the environmental Kuznets curve a complete picture?," Emerging Markets Review, Elsevier, vol. 38(C), pages 197-218.
    2. Savona, Maria & Ciarli, Tommaso, 2019. "Structural Changes and Sustainability. A Selected Review of the Empirical Evidence," Ecological Economics, Elsevier, vol. 159(C), pages 244-260.
    3. Wang, Miao & Feng, Chao, 2018. "Using an extended logarithmic mean Divisia index approach to assess the roles of economic factors on industrial CO2 emissions of China," Energy Economics, Elsevier, vol. 76(C), pages 101-114.
    4. Béchir Ben Lahouel & Younes Ben Zaied & Guo-liang Yang & Maria-Giuseppina Bruna & Yaoyao Song, 2022. "A non-parametric decomposition of the environmental performance-income relationship: evidence from a non-linear model," Annals of Operations Research, Springer, vol. 313(1), pages 525-558, June.
    5. Lu, Qinli & Yang, Hong & Huang, Xianjin & Chuai, Xiaowei & Wu, Changyan, 2015. "Multi-sectoral decomposition in decoupling industrial growth from carbon emissions in the developed Jiangsu Province, China," Energy, Elsevier, vol. 82(C), pages 414-425.
    6. Jevan M. Cherniwchan & M. Scott Taylor, 2022. "International Trade and the Environment: Three Remaining Empirical Challenges," NBER Working Papers 30020, National Bureau of Economic Research, Inc.
    7. Rabeh Khalfaoui & Aviral Kumar Tiwari & Usman Khalid & Muhammad Shahbaz, 2023. "Nexus between carbon dioxide emissions and economic growth in G7 countries: fresh insights via wavelet coherence analysis," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(1), pages 31-66, January.
    8. Muhammad Shahbaz & Avik Sinha, 2019. "Environmental Kuznets curve for CO2emissions: a literature survey," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 46(1), pages 106-168, January.
    9. Shahbaz, Muhammad & Sinha, Avik, 2019. "Environmental Kuznets Curve for CO2 emission: A survey of empirical literature," MPRA Paper 100257, University Library of Munich, Germany, revised 2019.
    10. Wang, Jing & Rickman, Dan S. & Yu, Yihua, 2022. "Dynamics between global value chain participation, CO2 emissions, and economic growth: Evidence from a panel vector autoregression model," Energy Economics, Elsevier, vol. 109(C).
    11. Banie Naser Outchiri, 2020. "Contributing to better energy and environmental analyses: how accurate are decomposition analysis results?," Cahiers de recherche 20-11, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.
    12. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    13. Cansino, José M. & Román, Rocío & Ordóñez, Manuel, 2016. "Main drivers of changes in CO2 emissions in the Spanish economy: A structural decomposition analysis," Energy Policy, Elsevier, vol. 89(C), pages 150-159.
    14. Jiang, Jingjing & Ye, Bin & Xie, Dejun & Li, Ji & Miao, Lixin & Yang, Peng, 2017. "Sector decomposition of China’s national economic carbon emissions and its policy implication for national ETS development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 855-867.
    15. Löschel, Andreas & Pothen, Frank & Schymura, Michael, 2015. "Peeling the onion: Analyzing aggregate, national and sectoral energy intensity in the European Union," Energy Economics, Elsevier, vol. 52(S1), pages 63-75.
    16. Michael Schymura & Andreas Löschel, 2012. "Trade and the Environment: An Application of the WIOD Database," EcoMod2012 3948, EcoMod.
    17. Barra, Cristian & Zotti, Roberto, 2016. "Investigating the impact of national income on environmental pollution. International evidence," MPRA Paper 74149, University Library of Munich, Germany.
    18. Tajudeen, Ibrahim A. & Wossink, Ada & Banerjee, Prasenjit, 2018. "How significant is energy efficiency to mitigate CO2 emissions? Evidence from OECD countries," Energy Economics, Elsevier, vol. 72(C), pages 200-221.
    19. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    20. Zhang, Qianxue & Liao, Hua & Hao, Yu, 2018. "Does one path fit all? An empirical study on the relationship between energy consumption and economic development for individual Chinese provinces," Energy, Elsevier, vol. 150(C), pages 527-543.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecolec:v:193:y:2022:i:c:s0921800921003475. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ecolecon .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.