A decomposition analysis of CO2 emissions from energy use: Turkish case

Environmental problems, especially “climate change” due to significant increase in anthropogenic greenhouse gases, have been on the agenda since 1980s. Among the greenhouse gases, carbon dioxide (CO2) is the most important one and is responsible for more than 60% of the greenhouse effect. The objective of this study is to identify the factors that contribute to changes in CO2 emissions for the Turkish economy by utilizing Log Mean Divisia Index (LMDI) method developed by Ang (2005) [Ang, B.W., 2005. The LMDI approach to decomposition analysis: a practical guide. Energy Policy 33, 867–871]. Turkish economy is divided into three aggregated sectors, namely agriculture, industry and services, and energy sources used by these sectors are aggregated into four groups: solid fuels, petroleum, natural gas and electricity. This study covers the period 1970–2006, which enables us to investigate the effects of different macroeconomic policies on carbon dioxide emissions through changes in shares of industries and use of different energy sources. Our analysis shows that the main component that determines the changes in CO2 emissions of the Turkish economy is the economic activity. Even though important changes in the structure of the economy during 1970–2006 period are observed, structure effect is not a significant factor in changes in CO2 emissions, however intensity effect is.