Determinants of Energy-Based CO 2 Emissions in Ethiopia: A Decomposition Analysis from 1990 to 2017

Gideon Nkam Taka, Ta Thi Huong, Izhar Hussain Shah and Hung-Suck Park
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Gideon Nkam Taka: Department of Civil and Environmental Engineering, University of Ulsan, Daehak-ro 93, Nam-gu, Ulsan 44661, Korea
Ta Thi Huong: Department of Civil and Environmental Engineering, University of Ulsan, Daehak-ro 93, Nam-gu, Ulsan 44661, Korea
Izhar Hussain Shah: Institute of Environmental Sciences and Engineering, School of Civil and Environmental Engineering, National University of Sciences and Technology (NUST), Islamabad 44000, Pakistan
Hung-Suck Park: Department of Civil and Environmental Engineering, University of Ulsan, Daehak-ro 93, Nam-gu, Ulsan 44661, Korea

Sustainability, 2020, vol. 12, issue 10, 1-17

Abstract: Ethiopia, among the fastest growing economies worldwide, is witnessing rapid urbanization and industrialization that is fueled by greater energy consumption and high levels of CO 2 emissions. Currently, Ethiopia is the third largest CO 2 emitter in East Africa, yet no comprehensive study has characterized the major drivers of economy-wide CO 2 emissions. This paper examines the energy-related CO 2 emissions in Ethiopia, and their driving forces between 1990 and 2017 using Kaya identity combined with Logarithmic Mean Divisia Index (LMDI) decomposition approach. Main findings reveal that energy-based CO 2 emissions have been strongly driven by the economic effect (52%), population effect (43%), and fossil fuel mix effect (40%) while the role of emission intensity effect (14%) was less pronounced during the study period. At the same time, energy intensity improvements have slowed down the growth of CO 2 emissions by 49% indicating significant progress towards reduced energy per unit of gross domestic product (GDP) during 1990-2017. Nonetheless, for Ethiopia to achieve its 2030 targets of low-carbon economy, further improvements through reduced emission intensity (in the industrial sector) and fossil fuel share (in the national energy mix) are recommended. Energy intensity could be further improved by technological innovation and promotion of energy-frugal industries.

Keywords: carbon emissions; low-carbon growth; developing countries; energy efficiency; decomposition analysis; industrial ecology; Ethiopia (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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