This is a Free article. You will receive access to the full text.

Decomposing aggregate CO2 emission changes with heterogeneity: An extended production-theoretical approach

Free Article

Quantifying the driving forces behind changes in aggregate CO2 emissions provides valuable information for supporting policy making in addressing climate change. We study this issue using the production-theoretical decomposition analysis (PDA) technique. Within a production theory framework, PDA examines CO2 emission changes from the perspective of productive efficiency. Although regional and sectoral heterogeneities in energy consumption and emission patterns prevail, they have not been taken into account in the PDA literature. By incorporating relevant decomposition methods, this study proposes an extended PDA approach to resolving the heterogeneity issue. The approach is applied to examine China's aggregate CO2 emission changes in its 11th five-year plan period (2005- 2010). By accounting for the heterogeneities, detailed results at the regional and sectoral levels are generated and further discussions presented.

Download Executive Summary Download PDF

Download Appendix 

Energy Specializations: Energy and the Environment – Climate Change and Greenhouse Gases; Energy Modeling – Energy Data, Modeling, and Policy Analysis

JEL Codes: Q54: Climate; Natural Disasters and Their Management; Global Warming, Q41: Energy: Demand and Supply; Prices, Q40: Energy: General, C43: Index Numbers and Aggregation; Leading indicators, D24: Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

Keywords: Production-theoretical decomposition analysis, Non-parametric frontier, Index number, Heterogeneity, China

DOI: 10.5547/01956574.39.1.hwan

References: Reference information is available for this article. Join IAEE, log in, or purchase the article to view reference data.

Published in Volume 39, Number 1 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy