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What drives carbon emissions in German manufacturing: Scale, technique or composition?

Elisa Rottner and Kathrine von Graevenitz ()

No 21-027, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: Carbon emissions from German manufacturing have increased over the past decade, while carbon intensity (emissions per Euro of gross output) has declined only slightly. We decompose changes in emissions between 2005 and 2017 into scale, composition (changes in the mix of goods produced) and technology (emission factors of production) effects. We find evidence that the production composition in the German manufacturing sector is increasingly shifting towards less carbonintensive products. However, we also find evidence to suggest that the energy intensity of production has increased. These results are largely driven by a few energy intensive sectors.

Keywords: Carbon emissions; Climate Policy; Statistical Decomposition; Manufacturing (search for similar items in EconPapers)
JEL-codes: D22 L60 Q41 Q48 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-tid
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