LMDI decomposition analysis of CO2 emissions in Algeria during 2000-2019 and the role of energy policy in reducing emission

Abstract

This study aims to determine the forces and factors driving the change in CO2 emissions in Algeria in 2000-2019. The analytical decomposition methodology used is the logarithmic mean Divisia index (LMDI), which enables us to know the role and magnitude of the impact of economic activity, structural changes, energy intensity, energy mix, and emission factors on the change in CO2 emissions. The results revealed that the total emissions are rising during the period 2000-2019 and that economic activity is the primary driving force for the increase in CO2 emissions in Algeria. Furthermore, the deterioration of energy efficiency and the trans- formation of the Algerian economy into an energy-intensive sector (the service sector at the expense of the industrial and agricultural sector), the energy intensity factor, and the economic structure factor did not help reduce the levels of CO2 emissions. Additionally, the energy mix factor contributed to a slight increase in emissions. In the context of following up on the im- plementation of the National Program for Renewable Energy and Energy Efficiency and its role in reducing the levels of CO2 emissions, it was found that the program failed to achieve its objectives during the first half of its implementation 2011-2020. These results indicate that public policymakers in Algeria should be strict in implementing the National Energy Program by 2030 by dissolving the conflict between economic growth and climate change policy