What are the key drivers of CO2 emissions in Denmark from 1980 to 2012? A decomposition analysis using the LMDI approach.

University essay from Lunds universitet/Ekonomisk-historiska institutionen

Abstract: By using a decomposition method of LMDI, this paper identifies the drivers behind the changes of the CO2 emissions level in Denmark between 1980 and 2012. By looking at four driving factors such as activity effect, structural change, technological change and CO2 emissions intensity, enables the study to find what drives and impact the changes in CO2 emissions in each sector and thereby also in the total level. Along with implementation of new reforms and regulations that implies promoting renewable energy and a greener economy, has an improvement within energy- and fuel switch efficiency taken place. These two driving components has also proven to be the two most important components as contributes to the decreasing level of CO2 emissions over the time period, which is a result that corresponds to previous studies within the energy and environmental field.

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