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Swedish CO2-Emissions 1993 - 2006 – An Application of Decomposition Analysis and Some Methodological Insights

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  • Löfgren, Åsa

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Muller, Adrian

    (Socioeconomic Institute, University of Zürich)

Abstract

This study undertakes a decomposition analysis to identify the drivers of carbon emissions change in the Swedish business and industry sectors 1993 - 2006. On aggregate, energy intensity decreased, but this does not seem to have been very important for reducing emissions. Rather, fuel substitution seems to have been more important, which is in line with findings from the decomposition literature on Sweden. However, at the sectoral level, we find no clear pattern of the effect of fuel substitution and energy intensity on emissions. We also draw some methodological conclusions: decomposition analysis should be undertaken at the most disaggregate level possible; assessing decomposition results by summing results over several time periods leads to biased results; and decomposition analysis should not be based only on some initial and final years of a long time period. Furthermore, we address the problem of double counting energy flows in decomposition analysis of aggregate effects when the energy sector is included, and point out potential problems related to output measured in monetary terms.

Suggested Citation

  • Löfgren, Åsa & Muller, Adrian, 2008. "Swedish CO2-Emissions 1993 - 2006 – An Application of Decomposition Analysis and Some Methodological Insights," Working Papers in Economics 311, University of Gothenburg, Department of Economics, revised 01 Jan 2010.
    • Handle: RePEc:hhs:gunwpe:0311
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    3. Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, vol. 93(C), pages 313-329.
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    8. 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.
    9. Dong, Kangyin & Hochman, Gal & Timilsina, Govinda R., 2020. "Do drivers of CO2 emission growth alter overtime and by the stage of economic development?," Energy Policy, Elsevier, vol. 140(C).
    10. Zhou, Xun & Kuosmanen, Timo, 2020. "What drives decarbonization of new passenger cars?," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1043-1057.
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    More about this item

    Keywords

    carbon dioxide emissions; decomposition; energy intensity; fuel substitution; sectoral change;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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