The role of energy consumption in global carbon intensity change: A meta-frontier-based production-theoretical decomposition analysis

Energy consumption is an essential component of economic development, the main source of carbon dioxide emissions, and therefore an important factor in shaping global carbon intensity (carbon emissions per unit of GDP, CI). Untangling the reasons underlying global CI change from an energy system perspective is therefore important to achieve the balance between economy growth and carbon emissions. However, due to the heterogeneities in different economies, this exploration is challenging. We develop a meta-frontier-based production-theoretical decomposition analysis (PDA) method to track the progress of CI change in 79 economies (divided into four groups) during 2007-2014 with heterogeneities of efficiency and technology between economies taken into account. We found that developing countries with large energy consumption (Group-DL) were more energy efficient, while high energy consumption developed countries (Group-HL) and low energy consumption developing countries (Group-DS) have achieved significant technological progress. Global CI reduction was due to the decreased potential energy intensity effect (PEI), primarily in Group-DL countries. The energy technology gap (TGT) and energy efficiency gap (TGE) effects have contributed to the global CI increase but have been less important than the economic structure effect (YOS). Especially countries in Group-DL should pay more attention to narrowing the energy efficiency and energy technology gaps with meta-frontiers.

Automated summary

Energy consumption is crucial for economic development and carbon emissions. This study develops a new method to analyze the progress of carbon intensity change in 79 economies from 2007 to 2014. The findings show that developing countries with high energy consumption are more energy efficient, while high energy consumption developed countries and low energy consumption developing countries have made significant technological progress. The decrease in global carbon intensity is mainly due to the reduced potential energy intensity effect, while energy technology and efficiency gaps have contributed to an increase in carbon intensity.