Moving towards a green decoupling between economic development and environmental stress? A new comprehensive approach for Ecuador

Abstract

Focused on Ecuatorian’s Economy this article analyzes for the 2000-2014 period. i) What have the drivers of CO2 emission in Ecuador been? ii) What are the determining factors to be focused on with regards to energy policy efforts and the mitigation of GHG emissions? And iii) Is the economy of Ecuador moving towards decoupling between economic growth and environmental stress? To respond to question i) a decomposition analysis of the change in CO2 emissions has been developed using the LMDI-I model. The decomposing factors or effects used include Carbon Intensity, Renewable Energy Sources penetration, Energy Intensity, Economic Structure, Economic Activity and Population. To answer question ii) a so-called Innovative Accounting Approach (IAA) has been implemented. Another innovative aspect of the methodology used has been to incorporate decoupling analysis between economic growth and environmental stress. This facilitates answering question iii). This is the first time that a comprehensive model is undertaken as described.