Decomposition study of energy-related CO2 emissions from Bangladesh’s transport sector development

Abstract

The transportation sector has a dominant contribution to the fast-growing economy of the developing country Bangladesh. However, the nature of operating the transportation sector in the country requires an excessive amount of fossil energy which causes the rise of CO2 emissions. Ascertaining the impending factors and technologically to conserve energy, as well as governing CO2 emissions from this sector, are essential to attain sustainable development. The paper endeavors to determine the decomposition of driving factors that affect the relationship between Bangladesh's transport sector development and CO2 emissions due to energy consumption from the year 1990 to 2017 using the Logarithmic-Mean Divisia Index (LMDI) model. The decomposition factors are fragmented into five elements through consideration of five fossil energies which are used in Bangladesh's transportation sector. The result reveals a 106.94% growth of aggregate CO2 emissions in the transportation sector of Bangladesh. The results also show that aggregate influence of economic activity factor, population factor, economic structure factor, and energy intensity factor liable in increase CO2 emissions to 66.03%, 23.56%, 7.64%, and 6.25% respectively. On the contrary, the energy structure factor is accountable for the decrease in CO2 emissions to - 0.80%. Thus, the Bangladesh Government should proliferate mass responsiveness programs and cope with economic development through emphasizing quality of development rather than quantity which will ensure sustainable transport sector development.