Decomposition Analysis of CO2 Emissions for Turkey and Iran over 1990-2010

Abstract

There exists an important awareness for reduction of CO2 emissions to obtain a sustainable world. Together with this, there is a great deal of interest for decomposition analysis to see the accelerating and decelerating factors of CO2 emissions. The aim of this project is to decompose CO2 emissions in economic sectors for the two superpowers of Middle East, Iran and Turkey, over the time period between 1990 and 2010, for Turkey obtained a rapid growth performance in recent years and Iran which is the energy superpower of the world. Refined Laspeyres Index decomposition method and a consistent data gathered from the World Bank’s and UN’s databases have been used during the analysis. Five main sectors (agriculture, manufacturing, transportation, construction and other service sectors) and four main impacts (scale effect, composition effect, energy intensity effect and carbon intensity effect) have been considered to see the increasing and decreasing factors of CO2 emissions. Various interesting results are observed for both of the countries, for each of the economic sectors. Generally scale effect and energy intensity effect are the dominant impacts for all sectors of both countries. However composition effect and carbon intensity effect are also important contributors for economic activities of these two countries. Overall, our analysis showed that these two countries should pay attention for energy intensity and sustainable economic growth.