A cross-country assessment of energy- related CO2 emissions: A combined decomposition and decoupling approach

Energy can be considered both a resource and carbon intensive sector with the potential to promote adverse effects. One of these is climate change that distresses multiple dimensions of sustainability both on developed and emerging countries. Therefore, efforts to achieve energy sustainability should strive for emission reductions that promote impact decoupling, namely between energyrelated CO2 emissions and economic growth. In order to assess the relationship between these two variables at cross-country level, this study has resorted to a twofold complementary approach, based on decomposition and decoupling concepts. In the first approach, Log Mean Divisia Index (LMDI) method has been used to decompose changes in energyrelated CO2 emissions into its main driving forces. In the second approach, the role of these drivers regarding decoupling effect has been explored, determining which main drivers have contributed to decoupling and/or recoupling of emissions. The results obtained might help energy policy decision-makers to design future policies, with the aim of furthering impact reduction without hindering economic growth.