Main drivers of changes in CO2 emissions in the Spanish economy: a structural decomposition analysis

Abstract

The aim of this paper is the analysis of structural decomposition of changes in CO2 emissions in Spain by using an enhanced Structural Decomposition Analysis (SDA) supported by detailed Input–Output tables from the World Input–Output Database (2013) (WIOD) for the period 1995–2009. The decomposition of changes in CO2 emissions at sectoral level are broken down into six effects: carbonization, energy intensity, technology, structural demand, consumption pattern and scale. The results are interesting, not only for researchers but also for utility companies and policy-makers as soon as past and current political mitigation measures are analyzed in line with such results. The results allow us to conclude that the implementation of the Kyoto Protocol together with European Directives related to the promotion of RES seem to have a positive impact on CO2 emissions trends in Spain. After reviewing the current mitigation measures in Spain, one policy recommendation is suggested to avoid the rebound effect and to enhance the fight against Climate Change that is tax benefits for those companies that prove reductions in their energy intensity ratios.