The driving forces behind changes in CO2 emission levels in EU-27. Differences between member states

This paper has a double aim. First, the quantification and analysis of the driving forces behind the change in carbon dioxide emissions in the EU-27, assessing differences across countries, and secondly, setting up environmental and energy strategies in order to control carbon dioxide emissions. We identify five predefined factors behind the variations in CO2 emissions in the EU-27 during the 2001-2008 period. We apply index decomposition analysis (both in its additive and multiplicative forms), implemented through the so-called Logarithmic Mean Divisia Index (LMDI) method. A cross-country analysis is also included with a view to detect specific strengths and weaknesses of each member state, in order to better adopt and implement environmental and energy strategic measures. In general terms, the efficiency improvement in CO2 emissions by European countries has been enough to override the joint pressure of population and economic growth on CO2 emissions. Nevertheless both ex-communist and Mediterranean EU members need to increase their investment in energy efficiency in order to achieve a reduction in their emissions.