Manufacturing sector carbon dioxide emissions in nine OECD countries 1973--87: A Divisia index decomposition to changes in fuel mix, emission coefficients, industry structure, energy intensities, and international structure

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Abstract
In this paper the reduction in energy-related manufacturing carbon dioxide emissions for nine OECD countries in the period 1973 to 1987 is analyzed. Carbon dioxide emissions are estimated from energy use data. The emphasis is on carbon dioxide intensities, defined as emissions divided by value added. The overall manufacturing carbon dioxide intensity for the nine OECD countries was reduced by 42% in the period 1973--1987. Five fuels are specified together with six subsectors of manufacturing. Carbon dioxide emissions are estimated from fossil fuel consumption, employing emissions coefficients for gas, oil and solids. In addition, electricity consumption is specified. For electricity use an emission coefficient index is calculated from the shares of fossil fuels, nuclear power and hydro power used to generate electricity, and the efficiency in electricity generation from these energy sources. A Divisia index approach is used to sort out the contribution to reduced carbon dioxide intensity from different components. The major finding is that the main contribution to reduced carbon dioxide intensity is from the general reduction in manufacturing energy intensity, most likely driven by economic growth and increased energy prices, giving incentives to invest in new technology and new industrial processes. There is also a significant contributionmore » from reduced production in the most carbon dioxide intensive subsectors, and a contribution from higher efficiency in electricity generation together with a larger nuclear power share at the expense of oil. 19 refs., 5 figs., 11 tabs.« less

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