Analysing driving factors of India's transportation sector CO2 emissions: Based on LMDI decomposition method

Abstract

India is the world's third-largest carbon dioxide (CO2) emitter, with the transportation sector accounting for most of this emission. Using the logarithmic-mean Divisia index (LMDI) decomposition method and Tapio decoupling, this study examines the driving factors and their relationship with economic growth for the Indian transportation sector. Transportation-related energy consumption is decomposed into six factors. From 2001 to 2020, CO2 emissions from the Indian transportation sector increased from 155.9 Mt to 368.2 Mt. Roadways produce 88% of all CO2 emissions. Energy systems, economic advancement, and population scale increase CO2 emissions, whereas energy performance and transportation form decrease. Transport advancement demonstrates both tendencies intermittently. CO2 emissions from Indian transportation exhibit a weak decoupling. The increasing demand for vehicles, reliance on conventional fuel, and increase in energy consumption indicate a positive correlation with the increase in the nation's CO2 emissions, while the transition from coal to electric locomotives and the increased use of electric vehicles offset the increase in emissions. In short, the government should update strategic sustainable transport policy measures and emphasize renewable energy. This study will assist policymakers in formulating robust sustainable transportation policies.