CO2 emissions from household consumption in India between 1993-94 and 2006-07: A decomposition analysis

CO2 emission from anthropogenic activities is one of the major causes of global warming. India being an agriculture dependent country, global warming would mean monsoon instability and consequent food scarcity, natural disasters and economic concerns. However with proper policy interventions, CO2 emissions can be controlled. Input-output analysis has been used to estimate direct and indirect CO2 emissions by households for 1993-94, 1998-99, 2003-04 and 2006-07. Complete decomposition analysis of the changes in CO2 emissions between 1993-94 and 2006-07 has been done to identify the causes into pollution, energy intensity, structure, activity and population effects according to broad household consumption categories. Results indicate that activity, structure and population effects are the main causes of increase in CO2 emission from household fuel consumption. To identify the causes at the sectoral level a second decomposition has been done for changes between 2003-04 and 2006-07 to identify the causes in the next stage. Finally alternative energy policy options have been examined for each consumption category to reduce emissions. Combined strategies of technology upgradation, fuel switching and market management in order to reduce CO2 emissions for sectors like Batteries, Other non-electrical machinery, Construction and Electronic equipments (including Television), for which all the effects are positive, need to be adopted.