Decarbonization in New Zealand – where and how: a combination of input–output approach and structural decomposition analysis

Abstract

In New Zealand, agriculture accounts for around 50% of total gross greenhouse gas emissions, energy production and use account for 40%. Given the limited possibility of reducing methane from the agricultural sector, we focus on the shape of, and factors influencing, the energy-related emissions profile. A single framework that combines environmental input–output analysis with structural decomposition analysis is established to systematically investigate driving forces shaping energy-related greenhouse gas emissions at national and sectoral levels. Results show that emission intensity, population, and consumption volume are dominant factors influencing shifting the energy-related emissions profile from 2007 to 2013. To achieve a net-zero-carbon economy, decarbonizing the transport sector is foremost and should be given priority. Policy directed at improving energy utilization in private consumption and exports, and the adoption and utilization of advanced technology in manufacturing, would contribute to achieving emissions reduction targets.