Springer Nature is making SARS-CoV-2 and COVID-19 research free. View research | View latest news | Sign up for updates

Decomposing factors affecting CO2 emissions in Pakistan: insights from LMDI decomposition approach

  • 66 Accesses

Abstract

Carbon emissions have turned out to be one of the key alarming and complex issues which drive a long-lasting debate over climate change. The increasing trend in the usage of fossil fuels for the curse of economic development and at the same time reducing carbon emissions has become a significant phenomenon worldwide. In this study, we evaluate carbon emissions (CO2) during 1972–2016 by employing logarithmic mean Divisia index (LMDI) method. The results from decomposition using LMDI method indicate that the economic development factor is the main driving force for the increase of per capita carbon emissions in the country; the energy structure and energy efficiency are the restraining factor for per capita carbon emissions. Therefore, Pakistan should continue to upgrade energy structure from traditional sources to renewable energy sources to curb the increase of carbon emissions, and also, improve the efficiency of energy use and save energy to cope with environmental challenges. Finally, the study concludes with some policy suggestions.

This is a preview of subscription content, log in to check access.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6

References

  1. Ali R, Bakhsh K, Yasin MA (2019) Impact of urbanization on CO2 emissions in emerging economy: evidence from Pakistan. Sustain Cities Soc 48:101553

  2. Ang BW (2004) Decomposition analysis for policymaking in energy: which is the preferred method? Energy Policy 32(9):1131–1139

  3. Ang BW, Choi K-H (1997) Decomposition of aggregate energy and gas emission intensities for industry: a refined Divisia index method. Energy J:59–73

  4. Ang, Liu N (2007) Energy decomposition analysis: IEA model versus other methods. Energy Policy 35(3):1426–1432

  5. Ang B, Huang H, Mu A (2009) Properties and linkages of some index decomposition analysis methods. Energy Policy 37(11):4624–4632

  6. Attari MIJ, Hussain M, Javid AY (2016) Carbon emissions and industrial growth: an ARDL analysis for Pakistan. Int J Energy Sect Manag 10(4):642–658

  7. Bakhsh K, Rose S, Ali MF, Ahmad N, Shahbaz M (2017) Economic growth, CO2 emissions, renewable waste and FDI relation in Pakistan: new evidences from 3SLS. J Environ Manag 196:627–632

  8. Balcilar M, Ozdemir ZA, Arslanturk Y (2010) Economic growth and energy consumption causal nexus viewed through a bootstrap rolling window. Energy Econ 32(6):1398–1410

  9. Butnar I, Llop M (2011) Structural decomposition analysis and input–output subsystems: changes in CO2 emissions of Spanish service sectors (2000–2005). Ecol Econ 70(11):2012–2019

  10. Cansino JM, Sánchez-Braza A, Rodríguez-Arévalo ML (2015) Driving forces of Spain’s CO2 emissions: a LMDI decomposition approach. Renew Sust Energ Rev 48:749–759

  11. Cansino JM, Román R, Ordonez M (2016) Main drivers of changes in CO2 emissions in the Spanish economy: a structural decomposition analysis. Energy Policy 89:150–159

  12. Chen P-Y, Chen S-T, Chen C-C (2012) Energy consumption and economic growth—new evidence from meta analysis. Energy Policy 44:245–255

  13. Donglan Z, Dequn Z, Peng Z (2010) Driving forces of residential CO2 emissions in urban and rural China: an index decomposition analysis. Energy Policy 38(7):3377–3383

  14. Elahi E, Weijun C, Jha SK, Zhang H (2019) Estimation of realistic renewable and non-renewable energy use targets for livestock production systems utilising an artificial neural network method: a step towards livestock sustainability. Energy

  15. Finance, M. o (2018) Pakistan Economic Survey 2016–17 Retrieved 25-November-2018, from www.finance.gov.pk/survey/chapters_17/Pakistan_ES_2016_17_pdf.pdf. Accessed 25 Nov 2018.

  16. Gao T, Selinger JL, Rochelle GT (2019) Demonstration of 99% CO2 removal from coal flue gas by amine scrubbing. Int J Greenh Gas Control 83:236–244

  17. Guan D, Liu Z, Geng Y, Lindner S, Hubacek K (2012) The gigatonne gap in China’s carbon dioxide inventories. Nat Clim Chang 2(9):672

  18. Hatzigeorgiou E, Polatidis H, Haralambopoulos D (2008) 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. Energy 33(3):492–499

  19. Hübler M, Voigt S, Löschel A (2014) Designing an emissions trading scheme for China—an up-to-date climate policy assessment. Energy Policy 75:57–72

  20. Hussain M, Irfan Javaid M, Drake PR (2012) An econometric study of carbon dioxide (CO2) emissions, energy consumption, and economic growth of Pakistan. Int J Energy Sect Manag 6(4):518–533

  21. Irfan M, Riaz M, Arif MS, Shahzad SM, Saleem F, van den Berg L, Abbas F (2014) Estimation and characterization of gaseous pollutant emissions from agricultural crop residue combustion in industrial and household sectors of Pakistan. Atmos Environ 84:189–197

  22. Jawed A, Talpur M, Chandio I, Mahesar P (2019) Impacts of in-accessible and poor public transportation system on urban environment: evidence from Hyderabad, Pakistan. Eng Technol Appl Sci Res 9(2):3896–3899

  23. Khan MM, Zaman K, Irfan D, Awan U, Ali G, Kyophilavong P et al (2016) Triangular relationship among energy consumption, air pollution and water resources in Pakistan. J Clean Prod 112:1375–1385

  24. Khan M, Chaudhry MN, Ahmad SR, Saif S (2019) The role of and challenges facing non-governmental organizations in the environmental impact assessment process in Punjab, Pakistan. Impact Assessment and Project Appraisal:1–14. https://doi.org/10.1080/14615517.2019.1684096

  25. Khan MK, Teng J-Z, Khan MI (2019a) Effect of energy consumption and economic growth on carbon dioxide emissions in Pakistan with dynamic ARDL simulations approach. Environ Sci Pollut Res:1–11

  26. Khan MK, Teng J-Z, Khan MI, Khan MO (2019b) Impact of globalization, economic factors and energy consumption on CO2 emissions in Pakistan. Sci Total Environ 688:424–436

  27. Li JF, Wang X, Zhang YX (2012) Is it in China’s interest to implement an export carbon tax? Energy Econ 34(6):2072–2080

  28. Lim H-J, Yoo S-H, Kwak S-J (2009) Industrial CO2 emissions from energy use in Korea: a structural decomposition analysis. Energy Policy 37(2):686–698

  29. Lin B, Ahmad I (2017) Analysis of energy related carbon dioxide emission and reduction potential in Pakistan. J Clean Prod 143:278–287

  30. Lin B, Xie X (2016) CO2 emissions of China’s food industry: an input–output approach. J Clean Prod 112:1410–1421

  31. Liu L-C, Fan Y, Wu G, Wei Y-M (2007) Using LMDI method to analyze the change of China’s industrial CO2 emissions from final fuel use: an empirical analysis. Energy Policy 35(11):5892–5900

  32. Liu Y, Kumail T, Ali W, Sadiq F (2019) The dynamic relationship between CO2 emission, international tourism and energy consumption in Pakistan: a cointegration approach. Tourism Review

  33. Meng M, Niu D, Shang W (2014) A small-sample hybrid model for forecasting energy-related CO2 emissions. Energy 64:673–677

  34. Meng M, Jing K, Mander S (2017) Scenario analysis of CO2 emissions from China’s electric power industry. J Clean Prod 142:3101–3108

  35. Mirza FM, Kanwal A (2017) Energy consumption, carbon emissions and economic growth in Pakistan: dynamic causality analysis. Renew Sust Energ Rev 72:1233–1240

  36. Mohiuddin O, Asumadu-Sarkodie S, Obaidullah M (2016) The relationship between carbon dioxide emissions, energy consumption, and GDP: a recent evidence from Pakistan. Cogent Engineering 3(1):1210491

  37. Nasir M, Rehman FU (2011) Environmental Kuznets curve for carbon emissions in Pakistan: an empirical investigation. Energy Policy 39(3):1857–1864

  38. Pakistan, S. B. o (2017) Handbook of Statistics on Pakistan Economy 2015. Retrieved 25-October-2018, 2018, from http://www.sbp.org.pk/departments/stats/PakEconomy_HandBook/index.htm. Accessed 25 Oct 2018.

  39. Shahzad SJH, Kumar RR, Zakaria M, Hurr M (2017) Carbon emission, energy consumption, trade openness and financial development in Pakistan: a revisit. Renew Sust Energ Rev 70:185–192

  40. Shan Y, Liu J, Liu Z, Xu X, Shao S, Wang P, Guan D (2016) New provincial CO2 emission inventories in China based on apparent energy consumption data and updated emission factors. Appl Energy 184:742–750

  41. Tan X, Lai H, Gu B, Zeng Y, Li H (2018) Carbon emission and abatement potential outlook in China’s building sector through 2050. Energy Policy 118:429–439

  42. Wang H, Ang B (2018) Assessing the role of international trade in global CO2 emissions: an index decomposition analysis approach. Appl Energy 218:146–158

  43. Wang W, Zhang M, Zhou M (2011) Using LMDI method to analyze transport sector CO2 emissions in China. Energy 36(10):5909–5915

  44. Wang Z, Zhang B, Wang B (2018) Renewable energy consumption, economic growth and human development index in Pakistan: evidence form simultaneous equation model. J Clean Prod 184:1081–1090

  45. Wang R, Liu S, Wang L, Li Q, Zhang S, Chen B et al (2019a) Superior energy-saving splitter in monoethanolamine-based biphasic solvents for CO2 capture from coal-fired flue gas. Appl Energy 242:302–310

  46. Wang S, Fang C, Sun L, Su Y, Chen X, Zhou C et al (2019b) Decarbonizing China’s urban agglomerations. Ann Am Assoc Geogr 109(1):266–285

  47. Wang Z, Asghar MM, Zaidi SAH, Wang B (2019c) Dynamic linkages among CO 2 emissions, health expenditures, and economic growth: empirical evidence from Pakistan. Environ Sci Pollut Res 26(15):15285–15299

  48. Wei J, Huang K, Yang S, Li Y, Hu T, Zhang Y (2017) Driving forces analysis of energy-related carbon dioxide (CO2) emissions in Beijing: an input–output structural decomposition analysis. J Clean Prod 163:58–68

  49. Xu X, Ang BW (2013) Index decomposition analysis applied to CO2 emission studies. Ecol Econ 93:313–329

  50. Xu M, Li R, Crittenden JC, Chen Y (2011) CO2 emissions embodied in China’s exports from 2002 to 2008: a structural decomposition analysis. Energy Policy 39(11):7381–7388

  51. Yao C, Feng K, Hubacek K (2015) Driving forces of CO2 emissions in the G20 countries: an index decomposition analysis from 1971 to 2010. Eco Inform 26:93–100

  52. Yasmeen H, Wang Y, Zameer H (2019a) Modeling the role of government, firm, and civil society for environmental sustainability. Int J Agric Environ Inf Syst (IJAEIS) 10(2):82–97

  53. Yasmeen H, Wang Y, Zameer H, Solangi YA (2019b) Does oil price volatility influence real sector growth? Empirical evidence from Pakistan. Energy Rep 5:688–703

  54. Zameer H, Wang Y (2018) Energy production system optimization: evidence from Pakistan. Renew Sust Energ Rev 82:886–893

  55. Zhang W, Li K, Zhou D, Zhang W, Gao H (2016) Decomposition of intensity of energy-related CO2 emission in Chinese provinces using the LMDI method. Energy Policy 92:369–381

  56. Zhang B, Wang Z, Wang B (2018) Energy production, economic growth and CO 2 emission: evidence from Pakistan. Nat Hazards 90(1):27–50

Download references

Author information

Correspondence to Humaira Yasmeen.

Additional information

Publisher’s note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Responsible editor: Muhammad Shahbaz

Rights and permissions

Reprints and Permissions

About this article

Verify currency and authenticity via CrossMark

Cite this article

Yasmeen, H., Wang, Y., Zameer, H. et al. Decomposing factors affecting CO2 emissions in Pakistan: insights from LMDI decomposition approach. Environ Sci Pollut Res 27, 3113–3123 (2020). https://doi.org/10.1007/s11356-019-07187-3

Download citation

Keywords

  • CO2 emissions
  • LMDI
  • Energy
  • Economic development
  • Efficiency