Factors affecting CO₂ emission change

Case study for steel and machinery industry

Abstract

This study clarifies the factors affecting CO₂ emission change at steel industry and machinery industry in U.S., Japan, China, and Germany. We apply logarithm mean Divisia index to decompose the change of CO₂ emission and CO₂ emission per added value from 1995 to 2005. We show that CO₂ emission had been reduced from 1995 to 2005 due to carbon intensity decrease and energy efficiency improvement in U.S. and Germany. Additionally, we find China had been reduced CO₂ emission per added value due to energy efficiency improvement.