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Sustainability 2015, 7(12), 16108-16129; doi:10.3390/su71215805

Driving Forces of CO2 Emissions in Emerging Countries: LMDI Decomposition Analysis on China and India’s Residential Sector

Technology Management, Economics, and Policy Program, College of Engineering, Seoul National University, Seoul 151-742, Korea
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Academic Editor: Giuseppe Ioppolo
Received: 5 October 2015 / Revised: 18 November 2015 / Accepted: 27 November 2015 / Published: 4 December 2015
(This article belongs to the Section Economic, Business and Management Aspects of Sustainability)
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Abstract

The main objective of this paper is to identify and analyze the key drivers behind changes of CO2 emissions in the residential sectors of the emerging economies, China and India. For the analysis, we investigate to what extent changes in residential emissions are due to changes in energy emissions coefficients, energy consumption structure, energy intensity, household income, and population size. We decompose the changes in residential CO2 emissions in China and India into these five contributing factors from 1990 to 2011 by applying the Logarithmic Mean Divisia Index (LMDI) method. Our results show that the increase in per capita income level was the biggest contributor to the increase of residential CO2 emissions, while the energy intensity effect had the largest effect on CO2 emissions reduction in residential sectors in both countries. This implies that investments for energy savings, technological improvements, and energy efficiency policies were effective in mitigating CO2 emissions. Our results also depict that the change in CO2 emission coefficients for fuels which include both direct and indirect emission coefficients slowed down the increase of residential emissions. Finally, our results demonstrate that changes in the population and energy consumption structure drove the increase in CO2 emissions. View Full-Text
Keywords: CO2 emissions; emerging economy; residential sector; Logarithmic Mean Divisia Index (LMDI) method CO2 emissions; emerging economy; residential sector; Logarithmic Mean Divisia Index (LMDI) method
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).

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MDPI and ACS Style

Yeo, Y.; Shim, D.; Lee, J.-D.; Altmann, J. Driving Forces of CO2 Emissions in Emerging Countries: LMDI Decomposition Analysis on China and India’s Residential Sector. Sustainability 2015, 7, 16108-16129.

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