Drivers of greenhouse gas emissions in the Baltic states: decomposition analysis related to the implementation of Europe 2020 strategy

The prevention of climate change by reducing and stabilizing carbon dioxide emissions is the most important concern for policymakers. This study enriches the methodology of decomposition analysis by encompassing the EU 2020 strategy components. Thus, the aim of study is to reveal how the implementation of Europe 2020 strategy contributes to changes in GHG emissions in the Baltic States. The results showed that in all Baltic States, from 1990 to 2012, GHG emissions decreased by 55%. The factor, which contributed to the reduction of GHG emissions the most, was the increase of the share of renewable energy in final energy consumption. The reduction of energy consumption and decarbonisation index influenced the decrease of GHG as well as the increase of intensity of renewable resources and energy efficiency. Considering that during the period of economic growth the slight decrease of share of renewable resources and the growth of final energy consumption was observed, all Baltic States should achieve the increase of energy efficiency and that the energy consumption from renewable resources would increase seeking for the reduction of GHG emissions.