The non-energy industrial sector: an analysis of Algeria's energy-related CO2 emissions (2006-2021)

Abstract

In 2021, Algeria's CO2 emissions exceeded 178 million tons, reflecting a rise of over 73% in less than 15 years. To fight climate change, this study provides a detailed decomposition analysis of the drivers influencing Algeria's CO2 emissions related to energy use from 2006-2021 using the Logarithmic Mean Divisia Index (LMDI) approach. It emphasizes the non-energy industry sub-sectors, including food and drink products, iron and steel, mechanical, electronic and electric equipment, textiles and clothing, leather, and construction materials, which account for 24.36% of Algeria's total energy consumption. The findings indicate that industrial scale is the main driver influencing the increase in carbon emissions, contributing 26.12 Mt, followed by the emission factor effect at 9 Mt. However, the effects of industrial structure and energy intensity take an important part in reducing emissions, accounting for 14.16 Mt and 4.21 Mt, respectively. The “construction materials” industry was identified as the highest carbon emitter of non-energy industries, followed by “iron and steel, mechanical, electronics, and electric equipment”, and “food products, beverages, and tobacco” industries. Algerian policymakers can use the study's empirical results to develop sustainable energy strategies, particularly in non-energy sector, to enhance the potential for the country reaching its energy and green objectives.