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Driving Forces of CO 2 Emissions in Emerging Countries: LMDI Decomposition Analysis on China and India’s Residential Sector

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  • Yeongjun Yeo

    () (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University, Seoul 151-742, Korea)

  • Dongnyok Shim

    () (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University, Seoul 151-742, Korea)

  • Jeong-Dong Lee

    () (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University, Seoul 151-742, Korea)

  • Jörn Altmann

    () (Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University, Seoul 151-742, Korea)

Abstract

The main objective of this paper is to identify and analyze the key drivers behind changes of CO 2 emissions in the residential sectors of the emerging economies, China and India. For the analysis, we investigate to what extent changes in residential emissions are due to changes in energy emissions coefficients, energy consumption structure, energy intensity, household income, and population size. We decompose the changes in residential CO 2 emissions in China and India into these five contributing factors from 1990 to 2011 by applying the Logarithmic Mean Divisia Index (LMDI) method. Our results show that the increase in per capita income level was the biggest contributor to the increase of residential CO 2 emissions, while the energy intensity effect had the largest effect on CO 2 emissions reduction in residential sectors in both countries. This implies that investments for energy savings, technological improvements, and energy efficiency policies were effective in mitigating CO 2 emissions. Our results also depict that the change in CO 2 emission coefficients for fuels which include both direct and indirect emission coefficients slowed down the increase of residential emissions. Finally, our results demonstrate that changes in the population and energy consumption structure drove the increase in CO 2 emissions.

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  • Yeongjun Yeo & Dongnyok Shim & Jeong-Dong Lee & Jörn Altmann, 2015. "Driving Forces of CO 2 Emissions in Emerging Countries: LMDI Decomposition Analysis on China and India’s Residential Sector," Sustainability, MDPI, Open Access Journal, vol. 7(12), pages 1-22, December.
  • Handle: RePEc:gam:jsusta:v:7:y:2015:i:12:p:15805-16129:d:59949
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    2. Meiting Tu & Ye Li & Lei Bao & Yuao Wei & Olivier Orfila & Wenxiang Li & Dominique Gruyer, 2019. "Logarithmic Mean Divisia Index Decomposition of CO 2 Emissions from Urban Passenger Transport: An Empirical Study of Global Cities from 1960–2001," Sustainability, MDPI, Open Access Journal, vol. 11(16), pages 1-16, August.
    3. Minda Ma & Liyin Shen & Hong Ren & Weiguang Cai & Zhili Ma, 2017. "How to Measure Carbon Emission Reduction in China’s Public Building Sector: Retrospective Decomposition Analysis Based on STIRPAT Model in 2000–2015," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-16, September.
    4. Chen, Jiandong & Wang, Ping & Cui, Lianbiao & Huang, Shuo & Song, Malin, 2018. "Decomposition and decoupling analysis of CO2 emissions in OECD," Applied Energy, Elsevier, vol. 231(C), pages 937-950.
    5. Linwei Ma & Chinhao Chong & Xi Zhang & Pei Liu & Weiqi Li & Zheng Li & Weidou Ni, 2018. "LMDI Decomposition of Energy-Related CO 2 Emissions Based on Energy and CO 2 Allocation Sankey Diagrams: The Method and an Application to China," Sustainability, MDPI, Open Access Journal, vol. 10(2), pages 1-37, January.
    6. Yoonhwan Oh & Jungsub Yoon & Jeong-Dong Lee, 2016. "Evolutionary Patterns of Renewable Energy Technology Development in East Asia (1990–2010)," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-24, July.
    7. Xiaohu Lin & Jie Ren & Jingcheng Xu & Tao Zheng & Wei Cheng & Junlian Qiao & Juwen Huang & Guangming Li, 2018. "Prediction of Life Cycle Carbon Emissions of Sponge City Projects: A Case Study in Shanghai, China," Sustainability, MDPI, Open Access Journal, vol. 10(11), pages 1-16, October.
    8. Balezentis, Tomas, 2020. "Shrinking ageing population and other drivers of energy consumption and CO2 emission in the residential sector: A case from Eastern Europe," Energy Policy, Elsevier, vol. 140(C).

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    More about this item

    Keywords

    CO 2 emissions; emerging economy; residential sector; Logarithmic Mean Divisia Index (LMDI) method;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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