The multilevel index decomposition of energy-related carbon emission and its decoupling with economic growth in USA

Abstract

The United States of America is not only an important energy consuming country, but also in the dominant position of energy for many years. As one of the two largest emitters, the US has always been trying to register a decline in energy-related CO2. In order to make a further analysis of the phenomenon, we choose a new decoupling analysis with the multilevel logarithmic mean Divisia index (LMDI) method. This study examined the contribution of factors influencing energy-related carbon emissions in the United States of America during 1990-2014, quantitatively analyzed decoupling indicators of economic development and environmental situations. As is indicated in the results, economy development and activities have a significant effect in increasing carbon emission, however, measures of energy optimization such as the improvement of energy efficiency has played a crucial role in inhibiting the carbon dioxide emission. Furthermore, as is indicated in decoupling relationship, "relative decoupling" and "no decoupling" are the main states during the examined period. In order to better investigate the long-run equilibrium relationship between total carbon dioxide emissions of each effect and the relationship between CO2 emissions and economic growth, on the basis of a static decomposition analysis, we applied a dynamic analysis method-cointegration test. At last, recommendations and improvement measures aiming at the related issues were put forward.