The Drivers of Greenhouse
Gas Emissions Intensity
Improvements in Major
Economies: Analysis of
Trends 1995–2009
Madanmohan Ghosh
1
, Deming Luo
2
,
Muhammad Shahid Siddiqui
1
,Thomas
Rutherford
3
and Yunfa Zhu
2
Abstract
This article analyses the trends in greenhouse gas (GHG) emissions intensity
over the period 1995–2009 in a mix of developing and developed economies
that account for almost two-thirds of global emissions. From the accounting
point of view, it distinguishes between the production-based emissions (PBEs)
and consumption or demand-based emissions (DBEs). Several studies find that
while PBEs in many developed economies during the last decades have stabilised,
the DBEs are on the rise. Understanding the relative influence of various factors
that have shaped the different patterns of emissions growth can provide us with
important policy insights for controlling GHG emissions. The article undertakes
a decomposition exercise to understand the variations/fluctuations in both PBEs
and DBEs intensities due to changes in technology and changes in economic
structure (i.e., composition of aggregate production and final consumption). The
main findings of this article are that, over the period 1995–2009, technological
change has been the key driver of emissions intensity improvements in both PBEs
and DBEs. Emissions intensity improvements in consumption activities have been
Article
1
Model Development and Quantitative Research Division, Economic Analysis Directorate,
Environment and Climate Change, Quebec, Canada.
2
Statistics Canada, Ottawa, Canada.
3
Department of Agricultural and Applied Economics, University of Wisconsin, Madison, WI, USA.
Corresponding author:
Madanmohan Ghosh, Model Development and Quantitative Research Division, Economic Analysis
Directorate, Environment and Climate Change, 200 Sacre-Coeur, Gatineau, Quebec, K1A 0H3,
Canada.
E-mail: madanmohan.ghosh@canada.ca
Foreign Trade Review
55(3) 277–297, 2020
© 2020 Indian Institute of
Foreign Trade
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DOI: 10.1177/0015732520920769
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