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Stochastic Kaya model and its applications

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  • Hwang, In Chang

Abstract

This paper develops a stochastic Kaya model. The elasticity of carbon dioxide emissions with respect to population, per capita GDP, energy efficiency, and fossil fuel dependence is estimated using the panel data of 132 countries from 1960 to 2010. As an application of the stochastic Kaya model, we investigate the achievement of each nation to the stabilization of carbon emissions with economic development, using a method of index decomposition analysis. In addition, carbon emissions are projected by 2050 using the model. One of the main findings is that assuming the unit elasticity for each driving force underestimates the scale effect (population change and economic growth) and overestimates the counteracting technology effect. This results in significant differences in quantifying driving forces of the changes in carbon emissions and in future emissions projections.

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  • Hwang, In Chang, 2013. "Stochastic Kaya model and its applications," MPRA Paper 55099, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:55099
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    1. Paunić, Alida, 2016. "Brazil, Preservation of Forest and Biodiversity," MPRA Paper 71462, University Library of Munich, Germany.

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    More about this item

    Keywords

    Climate change policy; CO2 emissions; emissions scenarios; decomposition analysis;
    All these keywords.

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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