Environmental and Resource Economics

, Volume 61, Issue 2, pp 165–189 | Cite as

Effect of Technology Change on \(\hbox {CO}_{2}\) Emissions in Japan’s Industrial Sectors in the Period 1995–2005: An Input–Output Structural Decomposition Analysis

  • Uduak S. Akpan
  • Ovunda A. Green
  • Subhes Bhattacharyya
  • Salisu Isihak
Article

Abstract

This paper employs two-stage input–output structural decomposition analysis (SDA) to identify the factors responsible for changes in Japan’s \(\hbox {CO}_{2}\) emissions for two periods: 1995–2000 and 2000–2005. First, the study decomposes the total change in \(\hbox {CO}_{2}\) emissions for each period to obtain the contribution of change in \(\hbox {CO}_{2}\) emissions per unit output \((\hbox {CO}_{2}\) emissions coefficient), change in technology (technology effect), and change in final demand. The study observed from the first-stage decomposition that emissions coefficient and final demand drive the change in the first period (1995–2000) while the technology effect drives the change in the second period (2000–2005). The high contribution of the technology effect is driven by activities of iron and steel; coke, refined petroleum and gas; road transportation; and electricity sectors. Having observed the trend of the technology effect across the two periods, the study carried out a second-stage decomposition on technology effect in the second period to examine the contribution of each sector and observed that chemical and pharmaceuticals; iron and steel; road transportation; and construction sectors are mainly responsible. In conclusion, improvement in technical efficiency especially at the industrial process level of each industry will help Japan achieve greater level of \(\hbox {CO}_{2}\) emissions reduction.

Keywords

\(\hbox {CO}_{2}\) emissions Input–output Structural decomposition analysis  Technology change Japan 

Abbreviations

\(\mathrm{CO}_{2}\)

Carbon dioxide

GHG

Greenhouse gas

GIO

Greenhouse gas inventory office

GWEC

Global wind energy council

IEA

International Energy Agency

IDA

Index decomposition analysis

IEEJ

Institute of Energy Economics, Japan

JISF

Japan iron and steel federation

KP

Kyoto protocol

MOE

Ministry of Environment

NIES

National Institute for Environmental Studies

OECD

Organization for Economic Co-operation and Development

SDA

Structural decomposition analysis

UNFCCC

United Nations Framework Convention on Climate Change

SPA

Structural Path Analysis

SPD

Structural Path Decomposition

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Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  • Uduak S. Akpan
    • 1
  • Ovunda A. Green
    • 1
  • Subhes Bhattacharyya
    • 2
  • Salisu Isihak
    • 1
  1. 1.Sustainability, Policy, and Innovative Development Research (SPIDER) Solutions NigeriaUyoNigeria
  2. 2.Institute of Energy and Sustainable DevelopmentDe Montfort University The GatewayLeicester UK

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