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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.

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File URL: http://hdl.handle.net/2077/10389
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Bibliographic Info

Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 311.

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Length: 43 pages
Date of creation: 24 Jun 2008
Date of revision: 01 Jan 2010
Handle: RePEc:hhs:gunwpe:0311

Contact details of provider:
Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
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Keywords: carbon dioxide emissions; decomposition; energy intensity; fuel substitution; sectoral change;

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Citations

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Cited by:
  1. Bonilla, Jorge & Coria, Jessica & Sterner, Thomas, 2012. "Synergies and Trade-offs between Climate and Local Air Pollution: Policies in Sweden," Working Papers in Economics, University of Gothenburg, Department of Economics 529, University of Gothenburg, Department of Economics.
  2. Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, Elsevier, vol. 93(C), pages 313-329.
  3. Miguel Rodríguez & Yolanda Pena-Boquete, 2013. "Mishandling carbon intensities," Working Papers, Universidade de Vigo, Departamento de Economía Aplicada 1302, Universidade de Vigo, Departamento de Economía Aplicada.

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