Determinants of CO2 emissions in Brazil and Russia between 1992 and 2011: A decomposition analysis

• This study explores the determinants of CO2 emissions in Brazil and Russia for the period 1992–2011.
• We use a decomposition analysis, called refined Laspeyres index method.
• Identified factors are Economic Activity, Energy Intensity, Carbon Intensity, and Population.
• Empirical findings reveal that economic activity and population are the major CO2 emissions accelerating factors in Brazil.
• In Russia, economic activity followed an accelerating impact on CO2 emissions, while energy intensity reduced the CO2 emissions.
• For both countries, carbon intensity followed a minor impact on CO2 emissions.
• This study creates an opportunity to authorities to develop some sustainable projects for Brazil and Russia.

This paper deals with the decomposition analysis of energy-related CO2 emissions in Brazil and Russia from 1992 to 2011. The refined Laspeyres index (RLI) method applied and both aggregated and sectoral changes in CO2 emissions decomposed. Brazil’s and Russia’s economies divided into three economic sectors including agriculture, industry and services. Impact of four main factors, such as economic activity, employment, energy intensity, and carbon intensity in CO2 emissions changes were analyzed. The aggregated decomposition analysis revealed that Brazil is still far from a decoupling between economic growth and carbon dioxide emissions where Russia achieved a substantial decline in carbon emissions mainly due to the improved energy intensity. The empirical findings of sectoral decomposition analysis emphasized that the economic activity was the major CO2 increasing factor in Brazil’s economic sectors. On the other hand the economic activity effect followed a reducing impact in Russia’s sectoral emissions until 2000. The structural changes between sectors and their impacts on CO2 emissions were captured by employment effect. Energy intensity and carbon intensity effects underlined that environmental sustainability widely neglected in Brazil and Russia during the study period. The results yield important hints for energy planning and sustainable environment.