A decomposition analysis of the driving factors of CO2 (Carbon dioxide) emissions from the power sector in the European Union countries

The scope of this paper is to investigate the driving factors of CO2 emissions from electricity generation in all European Union countries (EU-28) during the period 2000-2012. Particular emphasis is placed on the assessment of any potential association between the examined driving factors and major climate and energy policies implemented during the examined period. In addition, the analysis distinguishes two subperiods, namely 2000-2007 and 2007-2012 in order to detect the impact of the economic crisis on each distinct driving factor and, consequently, on the total level of CO2 emissions from the power sector. The model developed to analyse the changes in CO2 emissions from the power sector across EU-28, is based on LMDI-I method and takes into account five driving factors: level of activity, electricity intensity, electricity trade, efficiency of electricity generation and fuel mix. The obtained results show that in times of economic growth the main factor counterbalancing the activity effect was in most countries the decreasing electricity intensity, while the contribution of all other factors becomes apparent later, despite the economic crisis and in view of the Kyoto targets. (C) 2015 Elsevier Ltd. All rights reserved.