CO2 emissions in Greece for 1990–2002: A decomposition analysis and comparison of results using the Arithmetic Mean Divisia Index and Logarithmic Mean Divisia Index techniques

This paper deals with the decomposition analysis of energy-related CO2 emissions in Greece from 1990 to 2002. The Arithmetic Mean Divisia Index (AMDI) and the Logarithmic Mean Divisia Index (LMDI) techniques are applied and changes in CO2 emissions are decomposed into four factors: income effect, energy intensity effect, fuel share effect and population effect. The period-wise and time series analyses show that the biggest contributor to the rise in CO2 emissions in Greece is the income effect; on the contrary, the energy intensity effect is mainly responsible for the decrease in CO2 emissions. A comparison of the results of the two techniques gave an insight in the intricacies of energy decomposition. Finally, conclusions and future areas of research are presented.