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The effect of energy efficiency on Swedish carbon dioxide emissions 1993-2004

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Author Info
Löfgren, Åsa () (Department of Economics, School of Business, Economics and Law, Göteborg University)
Muller, Adrian () (Socioeconomic Institute, University of Zürich)

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Abstract

Observed decoupling of emissions from output on the aggregate may not only occur due to increased efficiency on sectoral level, but also in case the sectoral composition signi cantly changes from emissions intensive industries towards others, by relocation of emission intensive sectors to foreign countries, by substitution to cleaner types of energy, or by a contraction of the whole economy - all without changes in effciencies. In this paper, we undertake a decomposition analysis using the logarithmic-mean Divisia Index method (LMDI) to investigate the overall change in CO2 emissions from 1993-2004 in the Swedish business and industry sectors, and to identify the most important factors explaining this change. We find that only four sectors (agriculture; pulp and paper; basic metal; land transportation), out of the eight sectors that each contribute with more than 5% of total CO2 emissions, contributed to a decrease in CO2 emissions through increased energy efficiency. Even more striking is the result that on the aggregate level for the whole economy and summarizing over the whole period 1993-2004, a slightly positive effect of energy effciency on CO2 emissions can be identified, while changes in relative size, i.e. overall structural change, and substitution to cleaner fuels have been more important regarding reductions in aggregate emissions.

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File URL: http://hdl.handle.net/2077/10389
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Publisher Info
Paper provided by Göteborg University, Department of Economics in its series Working Papers in Economics with number 311.

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Length: 35 pages
Date of creation: 24 Jun 2008
Date of revision:
Handle: RePEc:hhs:gunwpe:0311

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Postal: Department of Economics, School of Business, Economics and Law, Göteborg University Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Related research
Keywords: carbon emissions; energy efficiency; decomposition;

Find related papers by 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

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