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Management accounting approach to analyse energy related CO2 emission: A variance analysis study of top 10 emitters of the world

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  • Pani, Ratnakar
  • Mukhopadhyay, Ujjaini

Abstract

The paper undertakes a decomposition study of carbon dioxide emission of the top ten emitting countries over the period 1980–2007 using variance analysis method, with the objectives of examining the relative importance of the major determining factors, the role of energy structure and impact of liberalisation on emission and exploring the possibilities of arresting emission with simultaneous rise in population and income. The major findings indicate that although rising income and population are the main driving forces, they are neither necessary nor sufficient for increasing emission, rather energy structure and emission intensities are the crucial determinants, pointing towards the fact that a country with higher income and population with proper energy policy may be a low emitter and vice-versa. Since modern energy-intensive production limits the scope of reduction in total energy use, it is necessary to decouple the quantum of energy use from emission through technological upgradation. The results indicate that liberalisation resulted in higher emission. The paper attempts to illustrate the required adjustments in energy structure and suggests necessary policy prescriptions.

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  • Pani, Ratnakar & Mukhopadhyay, Ujjaini, 2013. "Management accounting approach to analyse energy related CO2 emission: A variance analysis study of top 10 emitters of the world," Energy Policy, Elsevier, vol. 52(C), pages 639-655.
    • Handle: RePEc:eee:enepol:v:52:y:2013:i:c:p:639-655
    DOI: 10.1016/j.enpol.2012.10.024
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    3. Jaruwan Chontanawat, 2019. "Driving Forces of Energy-Related CO 2 Emissions Based on Expanded IPAT Decomposition Analysis: Evidence from ASEAN and Four Selected Countries," Energies, MDPI, vol. 12(4), pages 1-23, February.
    4. Cicea, Claudiu & Marinescu, Corina & Popa, Ion & Dobrin, Cosmin, 2014. "Environmental efficiency of investments in renewable energy: Comparative analysis at macroeconomic level," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 555-564.
    5. Guokui Wang & Xingpeng Chen & Zilong Zhang & Chaolan Niu, 2015. "Influencing Factors of Energy-Related CO 2 Emissions in China: A Decomposition Analysis," Sustainability, MDPI, vol. 7(10), pages 1-19, October.
    6. Dharmender Yadav & Munish K. Chandel & Pramod Kumar, 2016. "Suitability of CO 2 capture technologies for carbon capture and storage in India," Greenhouse Gases: Science and Technology, Blackwell Publishing, vol. 6(4), pages 519-530, August.

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    Keywords

    CO2 emission; Variance analysis; Emission offsetting;
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