Is sustainable energy development ensured in the EU agriculture? Structural shifts and the energy-related greenhouse gas emission intensity

Abstract

The changes in energy use and energy-mix are important in ensuring the implementation of the sustainability goals, especially those related to the climate change. Even though there have been attempts to analyse the energy-related greenhouse gas (GHG) emission in the European Union, there is still a lack of research that considers structural change, fossil energy consumption, and energy-mix simultaneously. In this context, the present paper addresses the growth in energy-related greenhouse gas (GHG) emissions in the European Union (EU) agriculture. The index decomposition analysis based on the logarithmic mean Divisia index is implemented over the period of 2004–2021. The change in the GHG intensity at the EU level is factorized with respect to the structural effect and those related to the energy intensity, the share of the fossil energy, and carbon factor for the fossil energy. The results suggest that a decline in the energy intensity appeared as the main driver pushing the energy-related GHG emission intensity down in the EU agriculture. This calls for further actions directed towards the increase of the use of renewables.