A Decomposition Analysis of CO2 Emissions Related Energy Consumption in Iran

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Abstract

In this paper, through use of Index Decomposition Analysis (IDA (and the Logarithmic Mean Divisia Index (LMDI) technique, changes in CO2 emissions at the macroeconomic and sectoral levels have been studied for the time period 1346-1385 in eight sub-periods of five year intervals and for the time period 1383-1387 in two three-years sub-period intervals. The results show that changes in per capita GDP and energy intensity have had a positive effect on changes in CO2 emissions at the macroeconomic level, and changes of carbon intensity have had an effective impact on decreasing CO2 emissions. The results of in the industrial sector show that the share of fossil fuels in energy consumed and the share of industry in GDP have a determinant effect on CO2 emissions in the period 1383-1387. Further, the results show that carbon intensity and energy intensity have had a positive impact on CO2 emissions in the service and agricultural sectors and, in spite of other sectors, the share of agriculture in GDP has had a negative effect on CO2 emissions.

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