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Decomposition and decoupling: A case study of Colombia's energy consumption and economic growth

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  • Riveros, Jeisson A.
  • Shahbaz, Muhammad

Abstract

Nowadays, nobody can deny the relationship between economic growth and sustainability; however, the tendency to un-match a linear relationship between those two has acquired the name of “decoupling” economy, which means that the consumption of energy not necessarily has to rise at the same rate of gross domestic product, in order to reduce carbon emissions in a country or certain area. Then this document aims to study the Colombian decoupling, analyzing the economic structure and energy consumption between 1975 and 2021, applying the TAPIO model and the logarithmic mean Divisa index (LMDI) using the KAYA identity as a conversion factor (TAPIO + KAYA + LMDI) to analyze the trends per economical sector. Finding that, the Colombian economy has a predominant status of weak decoupling with randomly switches to strong decoupling, positioning it as a sustainable economy; although this condition is environmentally favorable, under a comprehensive public policy, energy consumption by economic sector can be increased to improve economic productivity and achieve better production levels on the sectors of agriculture, mines, and commerce whose energy consumption according to the data is substantially low.

Suggested Citation

  • Riveros, Jeisson A. & Shahbaz, Muhammad, 2024. "Decomposition and decoupling: A case study of Colombia's energy consumption and economic growth," Energy, Elsevier, vol. 312(C).
  • Handle: RePEc:eee:energy:v:312:y:2024:i:c:s0360544224032997
    DOI: 10.1016/j.energy.2024.133523
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    References listed on IDEAS

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    Cited by:

    1. Guoshu Lai & Xingjin Yu & Guoyao Wu & Zhiqiang Lan, 2025. "High-Quality Development and Decoupling Economic Growth from Air Pollution: Evidence from Daily Electricity Consumption in Fujian," Sustainability, MDPI, vol. 17(4), pages 1-25, February.

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    More about this item

    Keywords

    Decomposition; Decoupling; Colombia;
    All these keywords.

    JEL classification:

    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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