Decomposition of the Kaya identity in the European Mediterranean countries over the 1990-2020 period with respect to CO2 emissions

Abstract

The Kaya identity, proposed by Yoichi Kaya in 1993, attempts to evaluate the impact of total emissions of carbon dioxide (greenhouse gas) as the impact of human activity on the environment. The purpose of this work is the decomposition of CO2 emissions in the European Mediterranean countries (Cyprus, France, Greece, Italy, Malta, Slovenia and Spain) for a time period spanning from 1990 to 2020, based upon the Kaya identity into scale, technological and structural effect. For this purpose, the Tapio decoupling analysis is adopted. According to results, technology improvements leading to declining rates of carbon per unit of energy used and structural changes indicating the use of less energy per unit of production could help in counterbalancing the positive scale effect of GDP production in CO2 emissions per capita. This, however, requires the implementation of proper strategies focusing in improvements in technological change and structural changes in order to mitigate CO2 emissions without hindering the economic growth process.