CO2 emissions from electricity generation in seven Asia-Pacific and North American countries: A decomposition analysis

The Logarithmic Mean Divisia Index (LMDI) method of complete decomposition is used to examine the role of three factors (electricity production, electricity generation structure and energy intensity of electricity generation) affecting the evolution of CO2 emissions from electricity generation in seven countries. These seven countries together generated 58% of global electricity and they are responsible for more than two-thirds of global CO2 emissions from electricity generation in 2005. The analysis shows production effect as the major factor responsible for rise in CO2 emissions during the period 1990-2005. The generation structure effect also contributed in CO2 emissions increase, although at a slower rate. In contrary, the energy intensity effect is responsible for modest reduction in CO2 emissions during this period. Over the 2005-2030 period, production effect remains the key factor responsible for increase in emissions and energy intensity effect is responsible for decrease in emissions. Unlike in the past, generation structure effect contributes significant decrease in emissions. However, the degree of influence of these factors affecting changes in CO2 emissions vary from country to country. The analysis also shows that there is a potential of efficiency improvement of fossil-fuel-fired power plants and its associated co-benefits among these countries.