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Decomposition analysis of energy-related CO2 emissions: an empirical study for selected EU economies

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  • Emmanouil Hatzigeorgiou

    (Panteion University)

  • Eleni Koilakou

    (Panteion University)

Abstract

This study conducts a decomposition analysis of energy-related CO2 emissions across selected European countries from 2000 to 2018. Employing the Logarithmic Mean Divisia Index technique, the analysis disaggregates changes in CO2 emissions into five key drivers: the income effect, the energy intensity effect, the energy mix (structure) effect, the emission factor effect, and the population effect. The findings highlight the dominant influence of the income effect, with contributions ranging from + 12% in France to + 55% in the Czech Republic. In contrast, energy intensity improvements present a major impact on emissions reductions, especially in Sweden (− 40%) and the Czech Republic (− 35%), reflecting gains in energy efficiency. The energy structure effect had a negative contribution (e.g., − 13% in Denmark), while population effects were mainly modest and positive. The results underscore the necessity for tailored policy approaches across EU regions, with a strong emphasis on reducing energy intensity and fostering low-carbon economic growth. Conclusions and directions for future research—particularly toward extending the time series beyond 2018—are discussed.

Suggested Citation

  • Emmanouil Hatzigeorgiou & Eleni Koilakou, 2025. "Decomposition analysis of energy-related CO2 emissions: an empirical study for selected EU economies," Environment Systems and Decisions, Springer, vol. 45(3), pages 1-12, September.
    • Handle: RePEc:spr:envsyd:v:45:y:2025:i:3:d:10.1007_s10669-025-10044-z
    DOI: 10.1007/s10669-025-10044-z
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