Decomposition of energy-related CO2 emissions in Australia: challenges and policy implications

Shahiduzzaman, Md. and Layton, Allan and Alam, Khorshed (2015) Decomposition of energy-related CO2 emissions in Australia: challenges and policy implications. Economic Analysis and Policy, 45. pp. 100-111. ISSN 0313-5926


Changes in energy-related CO2 emissions aggregate intensity, total CO2 emissions and per-capita CO2 emissions in Australia are decomposed by using a Logarithmic Mean Divisia Index (LMDI) method for the period 1978–2010. Results indicate improvements in energy efficiency played a dominant role in the measured 17% reduction in CO2 emissions aggregate intensity in Australia over the period. Structural changes in the economy, such as changes in the relative importance of the services sector vis-a-vis manufacturing, have also played a major role in achieving this outcome. Results also suggest that, without these mitigating factors, income per capita and population effects could well have produced an increase in total emissions of more than 50% higher than actually occurred over the period. Perhaps most starkly, the results indicate that, without these mitigating factors, the growth in CO2 emissions per capita could have been over 150% higher than actually observed. Notwithstanding this, the study suggests that, for Australia to meet its Copenhagen commitment, the relative average per annum effectiveness of these mitigating factors during 2010–2020 probably needs to be almost three times what it was in the 2005–2010 period—a very daunting challenge indeed for Australia's policymakers.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: © 2015 Published by Elsevier B.V. Permanent restricted access to published version due to publisher copyright policy.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 25 Mar 2015 02:02
Last Modified: 29 Jun 2016 03:20
Uncontrolled Keywords: CO2 emissions; emissions intensity; decomposition analysis; energy intensity; structural change; emissions reduction
Fields of Research : 04 Earth Sciences > 0401 Atmospheric Sciences > 040104 Climate Change Processes
14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
05 Environmental Sciences > 0502 Environmental Science and Management > 050206 Environmental Monitoring
Socio-Economic Objective: D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919902 Ecological Economics
Identification Number or DOI: 10.1016/j.eap.2014.12.001

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