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Decomposition of aggregate CO2 emissions within a joint production framework

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  • Zhang, Xing-Ping
  • Tan, Ya-Kun
  • Tan, Qin-Liang
  • Yuan, Jia-Hai

Abstract

We present an alternative decomposition technique to identify the factors which contribute to the change of aggregate CO2 emissions by using distance functions to model the joint production of desirable and undesirable outputs. The key feature of the proposed approach is the introduction of inputs/outputs factor efficiencies, specified as distance functions, to the decomposition model. By using the proposed approach, the components driving the change of CO2 emissions are decomposed into the contributors from nine factors specified in this paper, and several production technology related components are included. This paper applies the model to data from developing countries. For the 20 developing counties as a whole, empirical results indicate the economic (GDP) growth is the most important contributor to CO2 emission increase, while good output technical change is the most important component to CO2 emission reduction between 1995 and 2005. The empirical results also provide extensive insights into the components driving CO2 emissions for each country between 1995 and 2005.

Suggested Citation

  • Zhang, Xing-Ping & Tan, Ya-Kun & Tan, Qin-Liang & Yuan, Jia-Hai, 2012. "Decomposition of aggregate CO2 emissions within a joint production framework," Energy Economics, Elsevier, vol. 34(4), pages 1088-1097.
    • Handle: RePEc:eee:eneeco:v:34:y:2012:i:4:p:1088-1097
    DOI: 10.1016/j.eneco.2011.09.006
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    More about this item

    Keywords

    Decomposition analysis; CO2 emissions; Data envelopment analysis; Distance function;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • N50 - Economic History - - Agriculture, Natural Resources, Environment and Extractive Industries - - - General, International, or Comparative
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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