| Abstract: |
Observed decoupling of emissions from output on the aggregate may not only
occur due to increased efficiency on sectoral level, but also in case the
sectoral composition signi cantly changes from emissions intensive industries
towards others, by relocation of emission intensive sectors to foreign
countries, by substitution to cleaner types of energy, or by a contraction of
the whole economy - all without changes in effciencies. In this paper, we
undertake a decomposition analysis using the logarithmic-mean Divisia Index
method (LMDI) to investigate the overall change in CO2 emissions from
1993-2004 in the Swedish business and industry sectors, and to identify the
most important factors explaining this change. We find that only four sectors
(agriculture; pulp and paper; basic metal; land transportation), out of the
eight sectors that each contribute with more than 5% of total CO2 emissions,
contributed to a decrease in CO2 emissions through increased energy
efficiency. Even more striking is the result that on the aggregate level for
the whole economy and summarizing over the whole period 1993-2004, a slightly
positive effect of energy effciency on CO2 emissions can be identified, while
changes in relative size, i.e. overall structural change, and substitution to
cleaner fuels have been more important regarding reductions in aggregate
emissions.<p> |