Decomposition Analysis of CO 2 Emission from Electricity Generation: Comparison of OECD Countries before and after the Financial Crisis

Haein Kim, Minsang Kim, Hyunggeun Kim and Sangkyu Park
Additional contact information
Haein Kim: KEPCO Management Research Institute, 55, Jeollyeok-ro, Naju-si, Jeollanam-do 58322, Korea
Minsang Kim: Technology Management, Economics and Policy Program, Seoul National University, 1, Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
Hyunggeun Kim: Technology Management, Economics and Policy Program, Seoul National University, 1, Gwanak-ro, Gwanak-gu, Seoul 08826, Korea
Sangkyu Park: Center for Energy Information and Statistics, Korea Energy Economics Institute, 405-11, Jongga-ro, Jung-gu, Ulsan 44543, Korea

Energies, 2020, vol. 13, issue 14, 1-16

Abstract: The purpose of this study is to analyze the factors that affect CO 2 emissions in the electricity generation sector in 36 OECD countries during the periods 1995–2008 and 2008–2017. This paper utilized Logarithmic Mean Divisia Index method for decomposing CO 2 emission into economic activity, electricity intensity that represents demand policy effort, the share of thermal generation, the mix of thermal generation, thermal efficiency that represent supply policy efforts, and carbon emission coefficient. The results showed that EU nations achieved a higher level of CO 2 reduction compared to that of non-EU nations. Regarding the policy factors, the decrease in the share of thermal generation served as the key driver, followed by the decrease in electricity intensity via improvements in energy consumption efficiency. Most non-EU countries such as South Korea, Chile, Mexico, Turkey, and Japan demonstrated an increasing trend of carbon emission during this period, which could be attributed to the changes in the generation mix on the supply side or the electricity intensity on the demand side. Increase in electricity price was confirmed to cause lower electricity intensity. South Korea had the largest amount of carbon emission among OECD countries and maintained one of the lowest electricity retail prices among OECD countries.

Keywords: Logarithmic Mean Divisia Index; electricity intensity; decomposition analysis; electricity production; electricity prices (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

Downloads: (external link)
https://www.mdpi.com/1996-1073/13/14/3522/pdf (application/pdf)
https://www.mdpi.com/1996-1073/13/14/3522/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:13:y:2020:i:14:p:3522-:d:381928

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().