CO2 emissions in Greece for 1990–2002: A decomposition analysis and comparison of results using the Arithmetic Mean Divisia Index and Logarithmic Mean Divisia Index techniques

This paper deals with the decomposition analysis of energy-related CO₂ emissions in Greece from 1990 to 2002. The Arithmetic Mean Divisia Index (AMDI) and the Logarithmic Mean Divisia Index (LMDI) techniques are applied and changes in CO₂ emissions are decomposed into four factors: income effect, energy intensity effect, fuel share effect and population effect. The period-wise and time series analyses show that the biggest contributor to the rise in CO₂ emissions in Greece is the income effect; on the contrary, the energy intensity effect is mainly responsible for the decrease in CO₂ emissions. A comparison of the results of the two techniques gave an insight in the intricacies of energy decomposition. Finally, conclusions and future areas of research are presented.