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Greenhouse gas emissions and the energy system: decomposition analysis and the environmental Kuznets curve

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  • Borghesi, Simone
  • Vercelli, Alessandro

Abstract

This paper discusses to what extent the recent trends in energy consumption and production are compatible with the requirements of sustainable development. For this purpose, starting from a simple identity applied to the energy sector, we use the decomposition analysis to derive a few analytical requirements for the long-term sustainability of the energy system and examine whether they are satisfied on the basis of the currently available data. From the analysis conducted in the paper, it emerges that an Environmental Kuznets Curve in energy intensity and/or carbon intensity may be insufficient to satisfy the sustainability conditions identified in the paper. Moreover, using simple graphical analysis, we show that the decomposition approach and the EKC imply two different relationships between per capita income (y) and carbon intensity (gy) and discuss the relative implications.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 27438.

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Date of creation: Dec 2010
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Handle: RePEc:pra:mprapa:27438

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Keywords: sustainable development; energy; global warming; environmental Kuznets curve; decomposition analysis; Kaya identity;

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  1. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
  2. Jordi Roca Jusmet & Monica Serrano Gutierrez, 2006. "Income Growth and Atmospheric Pollution in Spain: An Input-Output Approach," Working Papers in Economics 164, Universitat de Barcelona. Espai de Recerca en Economia.
  3. Selden Thomas M. & Song Daqing, 1994. "Environmental Quality and Development: Is There a Kuznets Curve for Air Pollution Emissions?," Journal of Environmental Economics and Management, Elsevier, vol. 27(2), pages 147-162, September.
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  6. Annegrete Bruvoll & Hege Medin, 2003. "Factors Behind the Environmental Kuznets Curve. A Decomposition of the Changes in Air Pollution," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 24(1), pages 27-48, January.
  7. Kenneth Arrow & Partha Dasgupta & Lawrence Goulder & Gretchen Daily & Paul Ehrlich & Geoffrey Heal & Simon Levin & Karl-Göran Mäler & Stephen Schneider & David Starrett & Brian Walker, 2004. "Are We Consuming Too Much?," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 147-172, Summer.
  8. Sun, J. W., 1999. "The nature of CO2 emission Kuznets curve," Energy Policy, Elsevier, vol. 27(12), pages 691-694, November.
  9. Elbert Dijkgraaf & Herman Vollebergh, 2005. "A Test for Parameter Homogeneity in CO 2Panel EKC Estimations," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 32(2), pages 229-239, October.
  10. Suri, Vivek & Chapman, Duane, 1998. "Economic growth, trade and energy: implications for the environmental Kuznets curve," Ecological Economics, Elsevier, vol. 25(2), pages 195-208, May.
  11. Marzio Galeotti & Alessandro Lanza, 1999. "Desperately Seeking (Environmental) Kuznets," Working Papers 1999.2, Fondazione Eni Enrico Mattei.
  12. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 181-187.
  13. Cole, M.A. & Rayner, A.J. & Bates, J.M., 1997. "The environmental Kuznets curve: an empirical analysis," Environment and Development Economics, Cambridge University Press, vol. 2(04), pages 401-416, November.
  14. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 181-188.
  15. Dinda, Soumyananda, 2004. "Environmental Kuznets Curve Hypothesis: A Survey," Ecological Economics, Elsevier, vol. 49(4), pages 431-455, August.
  16. Shafik, Nemat, 1994. "Economic Development and Environmental Quality: An Econometric Analysis," Oxford Economic Papers, Oxford University Press, vol. 46(0), pages 757-73, Supplemen.
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