Abstract

The ongoing planetary crisis has prompted us to conduct this study, which analyzes 18 leading polluters over the period from 1995 to 2023. The countries considered are the United States of America, Mexico, and Canada in North America; India, China, Japan, Russia, and Iran in Asia; Germany, France, the United Kingdom, Poland, Italy, and Ukraine in Europe; and South Africa, Egypt, Algeria, and Nigeria in Africa. The study aims to determine the factors influencing CO2 emissions based on the improvised version of the Kaya identity, focusing on clean energy and fossil fuels. To be precise, population (POP), economic activity factor (EAF), clean energy intensity (CEI), energy transition (ET), and emission per unit of non-renewable energy (EM_NRE) are considered in the present work. Logarithmic Mean Divisa Index (LMDI) has been employed for analyzing individual countries because of the structural differences and varying energy grids. Further, a long-run relationship has been studied using long-run estimators suitable for the four panels. The results suggest that each factor impacts the level of carbon emissions differently. The panel consists of integrated economies with distinct structural differences; hence, historical economic shocks impact the nations in different ways. The result manifests that the countries must increase the share of clean energy in their power grid.

Keywords: Renewable energy, Non-renewable energy, Carbon emissions, LMDI, Kaya identity

How to Cite:

Singh, A. K. & Jain, S., (2025) “Decomposing Carbon Emissions: LMDI with Country-Specific Insights and Panel Data Analysis”, Australasian Accounting, Business and Finance Journal 19(4): 2, 9–30. doi: https://doi.org/doi.org/10.14453/aabfj.v19i4.02

Rights: In Copyright