Decomposition Model Of CO₂Emissions Based On DEA

Global warming due to greenhouse gas emissions has become one of the major environmental problems. So, looking for decomposition model of CO2emissions and developing low-carbon economy have become a key issue.The efficiency change of inputs/outputs, which can be decomposed into technical efficiency change and technical change, was measured by using distance function and data envelopment analysis. An approach to decompose the change of aggregate CO2emission over time was proposed by taking technical efficiency change and technical change into account. The proposed model decomposes the CO2emission change into nine components specified in this paper, and several production technology related components are included. The key feature of the proposed approach is the introduction of inputs/outputs factor efficiencies, specified as distance functions, to the decomposition model.The paper was applied in decomposing the CO2emission for20developing countries during the periods of1995-2005. Empirical results indicate that:For the20developing counties as a whole, in1995-2005, the economic growth is the most important contributor to CO2emissions increase, while good output technical change is the most important component to CO2emissions reduction between1995and2005.The empirical results also provide extensive insights into the components driving the CO2emissions for single country between1995and2005.The economic growth is the most important contributor to CO2emissions increase; Energy efficiency contribute1.29%to CO2emissions reduction; Carbon factors change, energy saving technology and production technology gradually improve, and later contribute to CO2emissions reduction. The reduction of energy intensity is the most important component to CO2emissions reduction between1995and2005.The enhancement of carbon emissions technology efficiency and production technology efficiency contributed2.83%and3.39%to reduce carbon dioxide emissions, respectively.The empirical results are useful for setting policies of energy saving and emission reduction.