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Assessing energy consumption and greenhouse gas emissions in EU member states – decomposition analysis

Author

Listed:
  • Jana Chovancová

    (University of Prešov, Slovakia)

  • Lenka Štofejová

    (University of Prešov, Slovakia)

  • Štefan Gavura

    (Technical University of Košice, Slovakia)

  • Roman Novotný

    (University of Prešov, Slovakia)

  • Martin Rigelský

    (University of Prešov, Slovakia)

Abstract

This paper addresses the growing global concern regarding energy consumption and its adverse environmental impacts, particularly the increase of greenhouse gas emissions linked to economic development and population growth. To comprehensively assess the environmental implications of energy consumption, a decomposition analysis employing the Index decomposition analysis (IDA) method with the logarithmic mean Divisia index (LMDI) approach was conducted, focusing on the drivers behind energy consumption and greenhouse gas emissions in the EU 27 from 1998 to 2018. This analysis discerns disparities between wealthier and less affluent countries. The findings highlight substantial reductions in greenhouse gas emissions and energy consumption within the EU, primarily attributed to the growing emphasis on reducing the emission intensity targeted by EU policies. Nonetheless, disparities persist among member states, primarily driven by economic activity levels. In relation to the unique economic structures of EU countries results however advocate for diversified approaches tailored to the unique conditions of each Member State to meet the set targets, with an emphasis on fostering collaboration, technology transfer, innovation, and renewable energy adoption to advance sustainability of the region.

Suggested Citation

  • Jana Chovancová & Lenka Štofejová & Štefan Gavura & Roman Novotný & Martin Rigelský, 2024. "Assessing energy consumption and greenhouse gas emissions in EU member states – decomposition analysis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 11(4), pages 242-259, June.
    • Handle: RePEc:ssi:jouesi:v:11:y:2024:i:4:p:242-259
    DOI: 10.9770/jesi.2024.11.4(15)
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    References listed on IDEAS

    as
    1. Jeong, Kyonghwa & Kim, Suyi, 2013. "LMDI decomposition analysis of greenhouse gas emissions in the Korean manufacturing sector," Energy Policy, Elsevier, vol. 62(C), pages 1245-1253.
    2. Chen, Jiandong & Wang, Ping & Cui, Lianbiao & Huang, Shuo & Song, Malin, 2018. "Decomposition and decoupling analysis of CO2 emissions in OECD," Applied Energy, Elsevier, vol. 231(C), pages 937-950.
    3. Robert Stefko & Beata Gavurova & Miroslav Kelemen & Martin Rigelsky & Viera Ivankova, 2021. "Relationships between Renewable Energy and the Prevalence of Morbidity in the Countries of the European Union: A Panel Regression Approach," IJERPH, MDPI, vol. 18(12), pages 1-18, June.
    4. 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.
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    More about this item

    Keywords

    economic growth; energy consumption; CO2 emissions; EU 27; decomposition analysis;
    All these keywords.

    JEL classification:

    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

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