The carbon footprint of India and its drivers: A structural decomposition analysis of global value chains

Abstract

Developing countries are critical to meeting global climate targets. Identifying emission drivers for India will aid in the timely resolution of critical issues for India and other developing countries. This research examines carbon emissions in global value chains that lead to India. India’s consumption-based emissions increased by 930 Mt (105.6%) between 2000 and 2016. According to the structural decomposition analysis, the impact of per capita consumption (712 Mt) was significantly greater than the impact of the rising population (292 Mt). Improvements in energy efficiency and energy structure helped reduce domestic emissions by 289 Mt (between 2000 and 2008), and 107 Mt (between 2008 and 2016), respectively. During the study period, the impact of imports increased from about 10% to 17% of total consumption-based emissions. Approximately half of the emissions associated with imports originated in the rest of the world’s regions (RoW) consisting of smaller economies. Except for 'RoW,' all regions exporting to India have improved their energy structure and efficiency. India has a huge scope for reducing emissions through the use of renewable energy. The study’s findings substantiate the country’s efforts in this direction.