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Drivers of greenhouse gas emissions in the Baltic States: A structural decomposition analysis

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  • Brizga, Janis
  • Feng, Kuishuang
  • Hubacek, Klaus

Abstract

Since the mid-1990s three Baltic States have significantly increased their per capita gross domestic product (GDP) and at the same time have managed to keep the CO2 equivalent (CO2e) emissions low. We used structural decomposition analysis to identify the drivers of change for CO2e emissions in these countries between 1995 and 2009, a period that includes the collapse of the Soviet Union, restructuring and economic growth and the great recession. The results show that final demand has been the main driving force for increasing emissions in the Baltic States and would have caused an 80%, 64% and 143% emission increase in Estonia, Latvia and Lithuania, respectively, all other factors kept constant. This increase has been partly offset by a declining emission intensity of the economy, especially in Latvia and Lithuania; whereas in Estonia, which has one of the highest emission intensities in Europe, a shift in consumption patterns towards low carbon consumption items and a decarbonizing economic structure were the main balancing factors. It is likely that the Baltic States will experience a continuation of economic growth given their relatively low per capita GDP, which is less than half of the European Union average thus adequate carbon policies are paramount.

Suggested Citation

  • Brizga, Janis & Feng, Kuishuang & Hubacek, Klaus, 2014. "Drivers of greenhouse gas emissions in the Baltic States: A structural decomposition analysis," Ecological Economics, Elsevier, vol. 98(C), pages 22-28.
  • Handle: RePEc:eee:ecolec:v:98:y:2014:i:c:p:22-28
    DOI: 10.1016/j.ecolecon.2013.12.001
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    6. Cansino, José M. & Román, Rocío & Ordóñez, Manuel, 2016. "Main drivers of changes in CO2 emissions in the Spanish economy: A structural decomposition analysis," Energy Policy, Elsevier, vol. 89(C), pages 150-159.
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    10. Brizga, Janis & Feng, Kuishuang & Hubacek, Klaus, 2017. "Household carbon footprints in the Baltic States: A global multi-regional input–output analysis from 1995 to 2011," Applied Energy, Elsevier, vol. 189(C), pages 780-788.
    11. Li, Tianxiang & Baležentis, Tomas & Makutėnienė, Daiva & Streimikiene, Dalia & Kriščiukaitienė, Irena, 2016. "Energy-related CO2 emission in European Union agriculture: Driving forces and possibilities for reduction," Applied Energy, Elsevier, vol. 180(C), pages 682-694.
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    14. Olga Gavrilova & Raivo Vilu, 2015. "Estonia's Energy-related Greenhouse Gas Emissions in 1995-2011: A Structural Decomposition Analysis," Review of Economics & Finance, Better Advances Press, Canada, vol. 5, pages 67-84, February.
    15. Yu, Yadong & Ren, Hongtao & Kharrazi, Ali & Ma, Tieju & Zhu, Bing, 2015. "Exploring socioeconomic drivers of environmental pressure on the city level: The case study of Chongqing in China," Ecological Economics, Elsevier, vol. 118(C), pages 123-131.

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