Determinants of CO2 emissions in Brazil and Russia between 1992 and 2011: A decomposition analysis

Environmental Science & Policy

Volume 58, April 2016, Pages 95–106

• Hasan Rüstemoğlu^a, ,
• Antonio Rodríguez Andrés^{b, ,}

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doi:10.1016/j.envsci.2016.01.012

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Highlights

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This study explores the determinants of CO₂ emissions in Brazil and Russia for the period 1992–2011.

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We use a decomposition analysis, called refined Laspeyres index method.

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Identified factors are Economic Activity, Energy Intensity, Carbon Intensity, and Population.

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Empirical findings reveal that economic activity and population are the major CO₂ emissions accelerating factors in Brazil.

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In Russia, economic activity followed an accelerating impact on CO₂ emissions, while energy intensity reduced the CO₂ emissions.

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For both countries, carbon intensity followed a minor impact on CO₂ emissions.

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This study creates an opportunity to authorities to develop some sustainable projects for Brazil and Russia.

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Abstract

This paper deals with the decomposition analysis of energy-related CO₂ emissions in Brazil and Russia from 1992 to 2011. The refined Laspeyres index (RLI) method applied and both aggregated and sectoral changes in CO₂ emissions decomposed. Brazil’s and Russia’s economies divided into three economic sectors including agriculture, industry and services. Impact of four main factors, such as economic activity, employment, energy intensity, and carbon intensity in CO₂ emissions changes were analyzed. The aggregated decomposition analysis revealed that Brazil is still far from a decoupling between economic growth and carbon dioxide emissions where Russia achieved a substantial decline in carbon emissions mainly due to the improved energy intensity. The empirical findings of sectoral decomposition analysis emphasized that the economic activity was the major CO₂ increasing factor in Brazil’s economic sectors. On the other hand the economic activity effect followed a reducing impact in Russia’s sectoral emissions until 2000. The structural changes between sectors and their impacts on CO₂ emissions were captured by employment effect. Energy intensity and carbon intensity effects underlined that environmental sustainability widely neglected in Brazil and Russia during the study period. The results yield important hints for energy planning and sustainable environment.

Keywords

• CO₂ emissions;
• Environmental sustainability;
• Decomposition analysis;
• Refined Laspeyres index method;
• Brazil;
• Russia

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Copyright © 2016 Published by Elsevier Ltd.