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

Author

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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.

Suggested Citation

  • Borghesi, Simone & Vercelli, Alessandro, 2010. "Greenhouse gas emissions and the energy system: decomposition analysis and the environmental Kuznets curve," MPRA Paper 27438, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:27438
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    File URL: https://mpra.ub.uni-muenchen.de/27438/1/MPRA_paper_27438.pdf
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    References listed on IDEAS

    as
    1. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 181-187.
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    3. 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.
    4. 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.
    5. Marzio Galeotti & Alessandro Lanza, 1999. "Desperately Seeking (Environmental) Kuznets," Working Papers 1999.2, Fondazione Eni Enrico Mattei.
    6. 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.
    7. Holtz-Eakin, Douglas & Selden, Thomas M., 1995. "Stoking the fires? CO2 emissions and economic growth," Journal of Public Economics, Elsevier, vol. 57(1), pages 85-101, May.
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    12. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
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    17. (Various), 2006. "Book Reviews," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 181-188.
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    More about this item

    Keywords

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

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • 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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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