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Environmental Structural Decomposition Analysis of Italian Emissions, 1995-2005

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  • Paola Rocchi
  • Monica Serrano

    (Universitat de Barcelona)

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    Abstract

    This study analyses the evolution of greenhouse gas (GHG) emissions and acidification emissions for Italy in the years 1995-2005. Looking at data, while emissions that contribute to the local problem of acidification have been decreasing quite constantly, GHG emissions have been showing a slight increase due to the rise of carbon dioxide. The aim is therefore to highlight how different economic factors have driven the evolution of Italian emissions. The main factors considered are economic growth, the development of a technology allowing a more environment-friendly way of production, and the structure of consumption. The methodology proposed is a structural decomposition analysis (SDA), a method that permits to decompose the changes of the variable of interest among different driving forces and to reveal the relevance of each factor. Moreover, the analysis considers the relevance of international trade and it tries to deal with the problem of responsibility. That is, through international trade relationships a country could be exporting polluting production processes without a real reduction of the pollution implied in its consumption pattern. For this purpose, the SDA is firstly applied to the emissions caused by domestic production. This corresponds to a production-based approach (PBA). Successively, the analysis moves toward a consumption-based approach (CBA) and the decomposition is applied to emissions related to domestic production or foreign production that satisfies domestic demand. In this way the exercise allows a first check of the importance of international trade and it highlights some results at global as well at sector level that can indicate in which direction further analysis should be carried on.

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    Bibliographic Info

    Paper provided by Universitat de Barcelona. Espai de Recerca en Economia in its series Working Papers in Economics with number 267.

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    Length: 0 pages
    Date of creation: 2011
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    Handle: RePEc:bar:bedcje:2011267

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    Postal: Espai de Recerca en Economia, Facultat de Ciències Econòmiques. Tinent Coronel Valenzuela, Num 1-11 08034 Barcelona. Spain.
    Web page: http://www.ere.ub.es
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    1. Erik Dietzenbacher & Bart Los, 1998. "Structural Decomposition Techniques: Sense and Sensitivity," Economic Systems Research, Taylor & Francis Journals, vol. 10(4), pages 307-324.
    2. Massimiliano Mazzanti & Anna Montini, 2009. "Regional and Sector Environmental Efficiency Empirical Evidence from Structural Shift-share Analysis of NAMEA data," Working Papers 2009.11, Fondazione Eni Enrico Mattei.
    3. Alcantara, Vicent & Duarte, Rosa, 2004. "Comparison of energy intensities in European Union countries. Results of a structural decomposition analysis," Energy Policy, Elsevier, vol. 32(2), pages 177-189, January.
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    6. Henrik Jacobsen, 2000. "Energy Demand, Structural Change and Trade: A Decomposition Analysis of the Danish Manufacturing Industry," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 319-343.
    7. Viviani, Carlo, 2010. "The Italian Position in the Energy and Climate Change Negotiations," MPRA Paper 28679, University Library of Munich, Germany.
    8. Chen, Chia-Yon & Wu, Rong-Hwa, 1994. "Sources of change in industrial electricity use in the Taiwan economy, 1976-1986," Energy Economics, Elsevier, vol. 16(2), pages 115-120, April.
    9. Serrano, Mònica & Dietzenbacher, Erik, 2010. "Responsibility and trade emission balances: An evaluation of approaches," Ecological Economics, Elsevier, vol. 69(11), pages 2224-2232, September.
    10. Lim, Hea-Jin & Yoo, Seung-Hoon & Kwak, Seung-Jun, 2009. "Industrial CO2 emissions from energy use in Korea: A structural decomposition analysis," Energy Policy, Elsevier, vol. 37(2), pages 686-698, February.
    11. Peters, Glen P., 2008. "From production-based to consumption-based national emission inventories," Ecological Economics, Elsevier, vol. 65(1), pages 13-23, March.
    12. Mark De Haan, 2001. "A Structural Decomposition Analysis of Pollution in the Netherlands," Economic Systems Research, Taylor & Francis Journals, vol. 13(2), pages 181-196.
    13. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    14. Wu, Jung-Hua & Chen, Yen-Yin & Huang, Yun-Hsun, 2007. "Trade pattern change impact on industrial CO2 emissions in Taiwan," Energy Policy, Elsevier, vol. 35(11), pages 5436-5446, November.
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