Driving forces of CO2missions inmerging countries: LMDIecomposition analysis on China and India's residential sector

Abstract

The main objective of this paper is to identify and analyze the keyriversehind changes of CO2missions in the residential sectors of themergingconomies, China and India. For the analysis, we investigate to whatxtent changes in residentialmissions areue to changes innergymissions coefficients,nergy consumption structure,nergy intensity, household income, and population size. Weecompose the changes in residential CO2missions in China and India into these five contributing factors from 1990 to 2011y applying the Logarithmicean Divisia Index (LMDI) method. Our results show that the increase in per capita income level was theiggest contributor to the increase of residential CO2missions, while thenergy intensityffect had the largestffect on CO2missions reduction in residential sectors inoth countries. This implies that investments fornergy savings, technological improvements, andnergyfficiency policies wereffective in mitigating CO2missions. Our results alsoepict that the change in CO2mission coefficients for fuels which includeothirect and indirectmission coefficients slowedown the increase of residentialmissions. Finally, our resultsemonstrate that changes in the population andnergy consumption structurerove the increase in CO2missions.